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8 Ways How to Save Money Every Month
Does it feel like an overwhelming burden, trying to save? It doesn’t have to be. These little hacks can work easily into your everyday routine and will soon become habit. Here are 15 ways how to save money every month:
1.) Get on the Cash Envelope System
Dave Ramsey’s cash envelope system goes like this:
You have an envelope of cash for multiple budgeting categories in your life, like:
- Restaurant eating
Once you spend the envelope, you’re done. So if you budget $100/week for groceries and spend all $100, that’s it for the week. If you happen to spend $80 of the $100, you’ll have some money leftover, which you can save. It feels good to get that leftover and once you do, you’ll strive to have leftover money from your envelopes every time.
This system also helps you track your spending. Those multiple “extra” trips to the corner store or pharmacy for odds and ends really do add up. Give this a try.
2.) Pay Yourself First
This is one of the easiest ways to save every month. You pay yourself first.
If you have direct deposit through your employer, this is super easy. Allocate a set number to deposit into your savings account. Whether it be $100 or $1,000, every little bit helps AND you can increase this number over time to save more aggressively in the future.
Your employer or your bank should be able to set this up for your pretty easily.
It’s great because you never see the money in your checking account. When payday comes, you’ll automatically only see the money going into checking (after paying yourself first). Try this one out.
3.) Make a Budget
Oooohhhh, the dreaded budget. This doesn’t have to be scary. Budgeting can be fun. It’ll truly be an eye-opener to see where your money goes every month and you might even enjoy the challenge of sticking to that magical number you determine for yourself.
Make it easy on yourself by using an app to help:
- Mint: Perfect for overall money management.
- Acorns: Investing your spare change has never been this easy.
- Wally: This one helps you track your expenses with ease.
Doing it the old-fashioned way with pen and paper works too!
Ok, let me explain. Nearly everything you pay for can be negotiated. Here are some examples of regular expenses I negotiate:
- The price of my cable bill
- My monthly rent
- Credit card interest rate
- Student loan payments
The list goes on. All it takes is the courage to ask. Don’t hesitate. The worst that can happen is a no. The best that can happen is a yes, and more money in your pocket from that savings. Go ahead, give it a try!
5.) Lower your interest rates
This speaks to #4.
First, call your creditors to see if lower rates are available. This goes for credit cards, student loans, car loans, etc.
Then, start transferring your balances. Based on the results of your phone call, another option is to do a balance transfer.
6.) Challenge yourself to slash regular expenses
This means getting rid of cable or Netflix, pausing or eliminating monthly subscriptions, and lowering the number of splurges you indulge in, like your daily Starbucks run or lunch out with your friends.
Here are some other ways to cut expenses:
- Try carpooling or riding a bike to work
- Shop around for the lowest gas prices (try Gas Buddy)
- Switch cell phone carriers or try prepaid
7.) Switch your car
If riding public transportation, carpooling, or riding your bike is not for you, consider changing up your car to save money. This doesn’t have to be a downsize.
Moving to a more fuel-efficient vehicle can save you tons on gas!
My husband went from a gas-guzzling truck to a hybrid sedan and saves over $300/month on gas! It takes less than $20 to fill up his tank and the car can go between electric and gas which means that a tank of gas goes A LOT further!
Aside from a fuel-efficient vehicle, you can also downsize your car payment. This doesn’t necessarily mean downsizing your car. Shop the market to see what deals are available. End of year and beginning of year sales are popular for car dealerships.
Don’t forget to negotiate!
8.) Pay extra toward high interest debt
You will save big in the long run if you can pay off your high interest debt at a quicker pace. If you have extra money each month that you can allocate to your debt, throw as much as you can toward it, to save on interest.
That doesn’t sound too tough, does it? Hopefully not. There are tons of other ways to save money every month. Bookmark this post and check back on our blog often, as we uncover more money saving opportunities for you.
Here’s the recap:
Saving money doesn’t have to hurt. It can be a seamless transition that can soon feel like second nature. Here are 8 ways on how to save money every month:
1.) Try the cash envelope system
2.) Pay yourself first
3.) Start a budget
4.) Negotiate, negotiate, negotiate
5.) Lower your interest rates
6.) Lower your monthly expenses
7.) Switch out your car
8.) Pay off your high interest debt faster
You can do it! Share your thoughts down below.