I know saving money can feel overwhelming at times. With so many daily expenses and unexpected costs, it might seem like there’s no way to cut back. But over the years, I’ve learned that with a few simple life hacks, you can easily save money without making drastic changes to your lifestyle. In this article, I’ll share 20 tried-and-tested strategies to help you save money in areas you may not have even considered. Some of these hacks are small but can add up to big savings over time.
Table of Contents
1. Create a Budget and Stick to It
One of the most effective ways to save money is by creating a budget. I used to avoid it, thinking it would be too restrictive. But once I started tracking my income and expenses, I realized it gave me better control over my finances. You don’t need anything fancy—a simple spreadsheet or an app like Mint or YNAB (You Need A Budget) can do the job. By tracking where my money goes, I identified areas where I could cut back without feeling deprived.
Let’s break it down in a table for better understanding:
| Expense Category | Monthly Budget | Actual Spend | Difference |
|---|---|---|---|
| Rent/Mortgage | $1,200 | $1,200 | $0 |
| Groceries | $300 | $350 | -$50 |
| Utilities | $150 | $120 | +$30 |
| Entertainment | $100 | $80 | +$20 |
| Transportation | $120 | $110 | +$10 |
In this example, I saved $60 by spending less on utilities and entertainment, allowing me to allocate that money toward other priorities.
2. Meal Prep and Cook at Home
Eating out frequently adds up quickly. I used to spend so much on restaurants, even when I didn’t really need to. Meal prepping has become a game-changer for me. By planning my meals ahead of time and cooking in bulk, I save a lot of money each week. For instance, let’s say I spend $12 on lunch each day at a restaurant. Over the course of a month, that’s:
$12 x 20 days = $240
But if I make lunch at home for just $3 a day (including ingredients), I only spend:
$3 x 20 days = $60
That’s a saving of $180 each month. Multiply that over a year, and you’ll have $2,160 in savings!
3. Use Cash for Small Purchases
It might sound old-fashioned, but I’ve found that using cash instead of cards helps me stay within my budget. Studies show that people tend to spend more when using credit or debit cards. I started taking out a set amount of cash each week for small purchases like coffee, snacks, and other miscellaneous expenses. This method keeps me aware of how much I’m spending, and I’m less likely to make impulse buys.
4. Automate Savings
Saving money can be difficult if you have to remember to do it each month. So, I automated my savings. I set up automatic transfers from my checking account to a high-yield savings account each payday. Even if I can’t save a huge amount, over time it adds up. I don’t even notice the money disappearing from my checking account, so I’m less tempted to spend it.
5. Cancel Unused Subscriptions
We all have subscriptions we don’t use. I once had multiple streaming services, a gym membership, and several other monthly charges that were barely being used. When I reviewed my bank statements, I was shocked at how much I was paying for services I didn’t need. I canceled everything I wasn’t using regularly, saving me around $100 per month. Check your subscriptions and cancel anything you’re not actively using.
6. Shop with a List
Impulsive shopping was a problem for me. I would go into stores without a list and end up buying things I didn’t need. Now, I always make a list before I go grocery shopping or run errands. This helps me stay focused and avoid buying non-essential items. To take it a step further, I compare prices online before I go to the store. This simple habit saves me an average of $50 a month.
7. Buy in Bulk
Buying in bulk has saved me a significant amount on everyday essentials. Items like rice, pasta, and canned goods are much cheaper when bought in larger quantities. For example, buying a 25-pound bag of rice costs around $10, while buying several small bags of 1 pound each might cost me $2 each, or $10 for 5 pounds. It’s clear which option offers better value. Just make sure you’re only buying in bulk for items that you’ll actually use.
8. Buy Generic Brands
I used to be loyal to name-brand products, but over time I noticed that many generic or store brands offer similar quality at a fraction of the price. Now, I opt for generics whenever I can, whether it’s for groceries, toiletries, or household items. A simple example: the generic brand of ibuprofen costs me $3 for 100 tablets, while the name brand costs $8. That’s a savings of $5!
9. Take Advantage of Coupons and Deals
I’ve started actively looking for coupons and special offers. You can find discounts on websites like RetailMeNot or use apps like Honey, which automatically apply the best coupon codes at checkout. For example, I was able to save 20% on an online clothing purchase just by using a coupon code I found online. Over time, these small savings really add up.
10. Switch to Energy-Efficient Appliances
Energy bills can be a significant expense, but I’ve reduced mine by switching to energy-efficient appliances. For example, I swapped my old refrigerator for an Energy Star-rated model, which uses less electricity. In a year, I noticed a decrease of about $100 in my electricity bill, simply by upgrading to a more efficient appliance.
11. Use Public Transportation
I used to rely on my car for everything, but I’ve since found that using public transportation is both more cost-effective and environmentally friendly. I calculated that by taking the bus or subway instead of driving, I saved over $300 a month on gas, parking, and maintenance. Even if public transportation isn’t always convenient, it’s worth considering for your wallet.
12. Take Advantage of Free Events
Instead of spending money on expensive entertainment, I started taking advantage of free local events like community festivals, concerts, and art shows. These events offer great entertainment without the price tag. I’ve had just as much fun at a free outdoor concert as I have at a pricey ticketed event.
13. Reduce Water Usage
I’ve become more mindful of my water usage. Simple actions like taking shorter showers, turning off the tap while brushing my teeth, and fixing leaks have made a noticeable difference in my water bill. For example, reducing my shower time by just 5 minutes a day saves me about $10 a month on my water bill.
14. Negotiate Your Bills
I was surprised to learn how many of my bills were negotiable. I contacted my internet provider, insurance company, and even my cell phone carrier to negotiate lower rates. I was able to reduce my monthly internet bill by $20 and my insurance by $30 simply by asking for a better deal. Don’t be afraid to negotiate!
15. Use a Price-Tracking Tool
To get the best deals online, I use price-tracking tools like CamelCamelCamel for Amazon. These tools alert me when prices drop, helping me avoid overpaying. I once tracked the price of a gadget for a few weeks, and when it dropped by 30%, I bought it, saving me $60.
16. Limit Coffee Shop Visits
I love coffee, but buying it every day can add up. I realized that making coffee at home saves me a lot of money. If I buy coffee at a café for $4 a day, that’s:
$4 x 5 days a week = $20 a week
$20 x 4 weeks a month = $80 a month
But if I brew my own coffee for about $1 per cup, I only spend:
$1 x 5 days a week = $5 a week
$5 x 4 weeks a month = $20 a month
That’s a monthly saving of $60, which can be put toward something else.
17. Use the Library
Instead of buying books, I’ve started using the library. It’s free, and I can borrow as many books as I want. I was spending $30 a month on books, but now, I don’t spend a cent.
18. Pay Bills Early
Paying bills early can save you money by avoiding late fees. I set up reminders to pay bills ahead of time. I’ve saved $50 in late fees over the past year simply by staying organized.
19. Sell Unused Items
Instead of letting unused items gather dust, I’ve started selling things I no longer need. Whether it’s through eBay, Facebook Marketplace, or a garage sale, I’ve made over $500 by decluttering my home.
20. Buy Seasonal Items Off-Season
When I need new clothes or outdoor gear, I buy them off-season. For example, I buy winter jackets in the spring when prices are lower. By doing this, I’ve saved up to 50% on seasonal items.
By implementing these 20 simple life hacks, I’ve been able to save a significant amount of money over time. Some of these changes require only small adjustments, but the long-term impact on my finances has been remarkable. I encourage you to try a few of these strategies and see how much you can save. It doesn’t take much to start building a stronger financial future.
