How To Save Money: 12 Ways To Start Now

Whether you’re unsure how to develop habits that help you save money or are uncertain where you can cut back, these tips can help. One of the easiest ways to save money is by automatically moving it into savings each payday. But that only works when you have excess cash to move. The good news is that there are many ways to save money without a large income or a perfect budget.

Find ideas for how to save money every month, even on a limited income or during high inflation, and how to choose the right savings account for your goals.

You Don’t Need a Large Sum of Money To Start Saving

Building a savings account can feel difficult when expenses are high, or income is limited. But once you establish a system and discover ways to make room in the budget, you might be surprised at what you can accomplish.

Applying a 50/30/20 rule is one budgeting framework that might be a good starting point for allocating your take-home pay. Under this guidance, reserve 50% of your take-home pay for needs, 30% for wants, and 20% for savings and debt goals.

If 20% isn’t realistic, start with an amount that feels comfortable. Depending on your circumstances, you might begin by building a small emergency fund first, then prioritize paying off high-interest debt, and continue to save for other goals when possible.

How To Start Saving Money in Three Simple Steps

While the amount to set aside may vary for everyone, these easy tips can help you get started building a savings habit:

Step 1: Review your current finances. Examine different aspects of your spending, expenses, and debt payments to find opportunities to cut back or save.
Step 2: Choose a specific monthly savings amount. Calculate how much spending changes could free up and commit a specific and realistic amount to save each month.
Step 3: Move the money somewhere separate from everyday spending. Transfer the funds to a separate savings account so it is less likely to be spent.

Even a small contribution can kick-start the routine. As your savings balance grows, you may feel more motivated to continue these habits and increase the amount you transfer over time.

The 12 strategies below can help you reduce expenses, capture extra income, and consistently direct more money to your goals.

12 Ways To Save More Money Each Month

If you’re struggling with how to save money each month, you’re not alone. The best method depends on what is making it difficult for you to set funds aside. Use the table below to identify a tactic that fits your current situation and see how it can help create opportunities to save.

Your situation	Best tactic to try first	What to do with the money
You have several monthly subscriptions	Cut one recurring expense	Schedule a matching monthly savings transfer
Everyday purchases are adding up	Reduce one flexible spending category	Move the weekly or monthly difference to savings
You make frequent impulse purchases	Add a purchase waiting period	Transfer the amount you chose not to spend
Your phone, insurance, or internet bill is high	Compare plans and providers	Save the monthly reduction automatically
You forget to save	Automate a transfer after payday	Review the amount after one or two months
You received a refund, bonus, or gift	Save a predetermined percentage	Divide the remainder among debt and current needs
You need a quick savings boost	Sell items you no longer use	Deposit the proceeds directly into savings
You are saving for several goals	Create separate savings buckets	Assign each transfer to a specific purpose
You recently paid off a debt	Redirect the former payment	Automate the full or partial payment amount
Your income increased	Save part of the increase	Raise the automatic transfer immediately
Inflation is straining your budget	Recompare bills and adjust flexible expenses	Continue saving a smaller amount if necessary
You have high-interest debt	Build a cushion while prioritizing debt	Increase savings after expensive debt is paid off

1. Cut One Recurring Expense

Review your personal banking and credit card statements for subscriptions and recurring withdrawals or charges that are set up to charge until a membership is canceled or changed. See if the list includes any you no longer use or that you can do without. This could include:

Unused subscriptions
Streaming services
App plans
Gym memberships
Delivery memberships
Phone or internet packages

While you might be tempted to keep a $15 subscription service in case you need it later, cutting a $15 monthly charge can save $180 per year. Because your budget was already set up to absorb this amount, transfer the saved amount each month into your savings.

2. Reduce Flexible Spending

Limiting your flexible spending is a good tip to save money during inflation when day-to-day expenses can increase faster than usual. “Flexible” spending refers to non-essentials, such as dining out, personal items, entertainment, or clothing, but even essentials, like groceries and gas, can be reduced through careful cutbacks.

Instead of just trying to reduce all flexible spending, which is unrealistic, focus on spending less in one category at a time. Use these tips to find ways you can save money on non-essentials faster:

One Free Weekend: Choose one weekend a month to skip going to the movies or other paid events, and check out free local parks, cook meals at home, and stream movies you already own.
Online Shopping or Delivery Apps: Smartphone apps and shopping platforms can make it too easy to complete a purchase. Remove saved payment methods to add an extra step to the checkout process and help limit impulse buys.
Eating Out: Replace one restaurant meal each week with a home-cooked meal using groceries you already have in your pantry.
Use a Grocery List: If you tend to shop impulsively, make yourself use a grocery list so you’re purchasing only what you need and have a plan for everything to reduce waste and excess spending.
Reduce Car Trips: Combine errands, stop at the store on your way home from work, or carpool or ride your bike to cut down on gasoline and free up money for savings.

3. Add a Waiting Period for Unplanned Purchases

Discretionary purchases that are out of budget can make reaching your savings goals harder. Instead of saying no to every impulse buy, implement a waiting period and hold yourself to it. Pausing gives you time to reconsider the item’s necessity logically and decide whether something else you already own will suffice.

Set some general waiting periods based on the financial commitment, such as:

Wait 24 hours for routine purchases, like books, décor, or beauty products.
Wait 48 hours before purchasing mid-tier items like clothing or small appliances.
Wait 30 days before major lifestyle purchases, such as electronics or furniture.

4. Compare Prices on Regular Bills and Services

Some services or plans might be renegotiated or replaced with a lower-cost alternative, helping you save on rates for things you cannot cut. Call your providers to ask about lower-cost packages, available discounts, or promotional rates and compare quotes from multiple companies. Some expenses that may be reduced through comparison shopping, negotiation, or plan changes include:

Insurance
Mobile phone service
Internet
Utilities
Banking fees
Subscriptions

Remember to compare the total cost, terms, and service quality when considering an alternative company or reduced package.

5. Turn Unused Items Into Savings

If you’re looking for tips to save money fast, selling items that you no longer need can be one way to step up your savings balance without adjusting your monthly budget. Look for clothing, furniture, electronics, tools, or other household items that are still in good condition but rarely used.

Choose a realistic number of items to sell, then deposit the proceeds into savings instead of leaving the money in your checking account. Be realistic about resale value, account for any marketplace or shipping fees, and use safe payment and pickup practices.

6. Automate Your Savings Transfers

One tip to save money faster and more easily is to automate the transfer after payday or split a direct deposit between checking and savings. This removes the need for manual monthly decisions, and once it becomes a regular expense, you can budget to save money every month in a way that feels more manageable.

7. Save Extra Income and Unexpected Payments

Tax refunds, work bonuses, rebates, and cash gifts are all examples of irregular income that you should have a plan for before you receive the money. Choose a percentage of irregular income that you agree to save now and then follow through when an unexpected payment happens.

If putting all of what you receive into savings feels too restrictive, consider choosing a percentage of it to go into savings and use the rest of it for current needs or debts, based on your priorities.

8. Create Separate Savings Buckets for Different Goals

Assigning money to a specific purpose can make it easier to avoid spending it elsewhere. Track these categories on a spreadsheet, like this:

Log the total balance of your savings account at the top.
Divide that total into rows representing different goals, such as emergencies, vacation, holiday shopping, and a new car, for example.
Update the rows manually whenever you deposit or withdraw money.

This strategy provides a good visualization of what your money is set aside for, helping to prevent impulse withdrawals and keep you on track.

9. Redirect Money After Paying Off a Debt

Once a debt is eliminated, move the amount of the previous monthly payment into savings. For example, if you finish paying a $150 monthly loan payment, schedule a $150 monthly savings transfer in its place.

Redirecting some or all of a former debt payment may help increase savings without requiring a new expense category. If your budget is tight, choose a percentage of the payoff that you feel comfortable committing to saving consistently and leave the rest available to cover your current needs.

10. Use Raises and Income Increases Intentionally

Spending tends to increase when income does. It can be smart to start saving part of a raise, promotion, increased work hours, or side income right away, before your spending creeps up. Choose a percentage of the increase to save. If you get a 5% raise, commit to putting 2% of that away by increasing the amount of your automatic transfer. Use the remainder for debt, expenses, or discretionary spending, and adjust your budget accordingly.

11. Adjust Your Spending During Inflation

During inflation, the goal may be to preserve your savings habit rather than increase the amount you contribute. Effective ways to save money during inflation begin with revisiting expenses that have risen the most, temporarily reducing your transfer if necessary, and focusing on changes that help support your monthly cash flow. Apply these tips to your everyday and essential spending to save money during inflation:

Reduce your fixed bills – Shop around for better plans, rotate streaming services, negotiate rates, or reduce packaged services to only what you need
Limit impulse buys – Enforce waiting periods on purchases to break impulsive habits or use cash for nonessential purchases to encourage you to think twice
Minimize everyday expenses – Switch to generic brands or use loyalty apps and coupons
Protect your cash flow – Move savings to an interest-bearing account to help counter inflation or pay off high-interest debt

12. Combine Savings Methods

A fast yet realistic way to save money on a limited income is to combine methods, such as one immediate expense reduction and a small payday transfer. This could include canceling an unused subscription or pausing a seasonal service, and adding a small $10 to $15 payday transfer. Contributing this combined amount consistently can help you build savings even when your budget is tight.

If you have fewer optional expenses to choose from, look for areas you can reduce expenses on items you’ll still buy, like groceries. Find a discount grocer, only buy what’s on sale, build meals around staple products, or switch brands to lower-cost alternatives. These actions plus an automatic transfer can help you free up room in your finances.

Where Should You Keep the Money You Save?

Cash can be too easy to spend or lose track of. To better manage the money you keep, consider holding it in a checking, savings, or money market account. A certificate of deposit at your local bank is also an option. The best savings account for you is a personal choice, but how you intend to use your funds can help narrow your options.

Checking Account

While you can stash a small safety buffer in a checking account, it isn’t the best option for keeping long-term savings. These accounts are designed for immediate transactional spending, and excess cash in a checking account is difficult to track separately from disposable income and to keep from impulsive spending.

Savings Account

A savings account is ideal for emergency savings and setting money aside for short-term goals, like a vacation or furniture. Compare interest rates, account fees, minimum balances, and withdrawal access to understand if it might work for how you plan to use it.

A savings account can also be a good starting point for someone new to saving money. Relatively easy access to the funds may make saving feel less restrictive for some people.

Money Market Account

A money market account may appeal to savers who want the potential for a competitive interest rate while retaining some access to their money. Review the account’s minimum balances, rates, fees, and transaction options to understand if it is a good fit for your financial situation.

Certificate of Deposit

If you’re saving money you will not need during a set period, a certificate of deposit may offer higher rates than a traditional savings account. Review any early-withdrawal penalties and understand the accessibility before you commit money to a CD. This is not ideal for short-term goals or emergency savings.

Make One Savings Move Today

You do not need to use all 12 strategies at once. Choose one manageable action, such as canceling an unused subscription, scheduling a small automatic transfer, or setting aside part of an unexpected payment, and complete it today. Once that step becomes routine, you can build on it over time.

The Southern Bank offers savings and money market accounts, CDs, and other personal banking services to help customers manage their money and work toward financial goals. Visit a local branch for friendly, in-person service with a smile, or find our banking products and resources online.