10 Simple And Practical Tips to Save Money Monthly (2024)

There are a lot of different and sometimes extremely frugal strategies and tips to save money. Saving money is a goal that so many people are trying and wish to achieve, but it can sometimes feel challenging to find and implement effective strategies. I believe that finances should not be hard and I believe that no one should live in a complete misery without spending an extra penny. Yes, our lifestyle should reflect our income and we shouldn’t spend everything that we have. We should strive to live our lives below our means and save for the future, but it does not have to mean to sacrifice the quality of life.

In one of my previous posts, I listed some frugal tips to save money without sacrificing the quality of life. At the same time, I strongly believe and encourage anyone, who has debt, to do everything possible (and that means saving every single penny) to get out of it. With a bit of planning and commitment, it’s possible to make saving a habit. It is possible to have a great quality life without overspending. So here are some practical tips to help you save money each month. These are the tips that helped me to take control of my overspending habits.

Create A Budget to Save Money

One of my first tips to save money is to understand your income and expenses. Draft a realistic budget that allocates your money for necessities like rent, utilities, groceries, and debt payments. This will provide a clear overview of your financial situation; you will not only know exactly where you stand financially, but also will be able to review each of the categories to see if anything needs to be changed or adjusted. A good ratio to strive for, is for necessities to be no more than 50% of your income.

Cut Unnecessary Expenses

My second tips to save money is to review your monthly expenses and identify areas where you can cut back. This could include subscriptions, dining out, or impulse purchases. By removing non-essential expenses, you can direct those funds toward savings or paying off debt. Make sure to take a look at your necessities as well. Maybe it is time to reevaluate your groceries and switch to a different less expensive store, or maybe it could be a time for you to move to a less expensive neighborhood, or pick up a side job to increase your income. Whatever it is, be brutally honest with yourself about your situation.

Automate Savings

Set up automatic transfers to your savings account. Treat savings like a fixed expense, ensuring that a portion of your income is allocated towards savings before you have the chance to spend it elsewhere. A good ratio is to save 30% of your income. If you have troubles saving 30%, just try your best to at least maximize your Roth IRA account. If you can’t, probably it’s time to look for a new job, or pick up a side hustle.

Shop Smart to Save Money

My next tips to save money is to shop smart. Look for deals, compare prices, and consider buying generic brands. Take advantage of loyalty programs and discounts to save on everyday purchases. Additionally, buying in bulk can lead to significant savings over time. I love using my CVS loyalty card to get extra discounts on things such as laundry detergent, soap, toothpaste etc. Also, I prefer to buy canned goods in bulk as well as raw meat. I keep my raw meet in freezer and take it out the night before cooking it.

Emergency fund

Establishing an emergency fund is crucial. Save a portion of your income specifically for unexpected expenses. Having a financial cushion can prevent you from relying on credit cards or loans during unforeseen circ*mstances. A good amount to keep in your emergency fund is 3-6 months of your expenses.

Review and Negotiate Bills

Regularly review your utility bills, insurance premiums, and other recurring expenses. Contact providers to negotiate better rates or explore alternative options. Loyalty is often rewarded with discounted rates. A lot of times companies will give you a good rate for the first year and then raise it up. Make sure to follow up with them and see how you can reduce that new rate.

Limit Credit Card Usage

Another tips to save money is to limit credit card usage. While credit cards offer convenience, excessive use can lead to debt. Try to limit credit card usage and pay off the balance in full each month to avoid accruing interest. This will positively influence your credit score and keep you away from debt.

Energy Efficiency

Save on utility bills by adopting energy-efficient habits. Turn off lights and appliances when not in use, unplug chargers, and consider investing in energy-saving devices. Switch your regular bulbs to LED. These small changes will add up over time and your finances will thank you later.

Meal Planning to Save Money

Plan your meals for the week, create a shopping list, and stick to it. Cooking at home is usually more cost-effective than dining out, and it allows you to control the ingredients and portion sizes. Meal planning positively affected my life in many ways. It reduced food waste in our home, saved money on grocery shopping, and it saves me time every day because I don’t have to think what to cook. Mainly I buy meat in bulk and I just defrost it overnight; it saved me my random trips to the store to get fresh, defrosted meat at much higher price.

Track Your Progress

My last tips to save money is to track your progress. Regularly review your financial goals and track your progress. Celebrate small victories and adjust your strategies as needed. Monitoring your financial health can help you stay motivated on your savings journey. When I say celebrate small victories, I do not mean to go and spend everything you saved, unless you were saving for that specific purpose. A small celebration can be a nice dinner with take out at home or a trip with a family to the zoo, beach, or whatever you prefer.

Incorporating these practical tips into your financial routine can and will help you to move towards a healthier financial future. I have a post written about basic financial formula you need to know to succed, as well as where to invest your money. Make sure to check it out. Remember, consistency is key, and even small changes can lead to significant savings over time; habits that are difficult to adopt right now, will become a routine. I would love to read in the comments, what are your money saving tips that helped you?