13 Best Money Saving Strategies (That Actually Work)

Last Updated June 29, 2024 by Davina Kelly

Are you looking for money saving strategies that you can implement in your finances? In this post, I will share my best tips.

Saving money is super important. It can help you become financially stable, avoid debt, and give you peace of mind.

It can seem hard at the beginning, but once you find the strategy that works best for you and stay consistent saving will become easier.

As someone who saves a lot, I will share the best strategies I have implemented to help me reach my saving goals.

This post is all about money saving strategies.

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Best Money Saving Strategies:

1. Use Money Round-Ups

Having money rounds up activated in your bank account is a super easy way to save money. It is a way to save up your spare change from the things you buy every day like coffee, groceries, etc. It may seem like small amounts but trust me it adds up quickly.

The way this works is if you spend $2.80 on a coffee the purchase will be rounded up to the nearest dollar and the change from the purchase will be saved. In this case, $0.20 will be saved up. Implementing this strategy will make saving as easy as spending!

Now imagine all of the purchases you make on a daily or weekly basis that can be rounded up. You could save $20 – $50 in no time.

You could review the amount at the end of the year and put the savings towards a holiday.

2. Reduce Your Grocery Bill

Food is one of our biggest expenses so if you can find ways to reduce these costs you could save a lot of money. I know this can be challenging as temptation is real when you go grocery shopping lol. There are so many goodies that you want to try like cookies, new flavour chocolates, etc. But if you have a plan and stick with it you will survive.

There are a few ways you could save money on groceries. See some examples below.

Take inventory before you go shopping:

Before you go to the grocery store you should make a list of all of the items you already have at home. This way you are only buying the items you need. I recommend checking your freezer, fridge, and cupboards (pantry if you are from the U.S.) and making a list.

You can then review this list and decide what you actually need to buy. For example, if you want to make spaghetti Bolognese and you already have minced meat in the freezer then you will know that you only need to buy spaghetti and the ingredients to make the sauce.

Buy The Generic Brand:

Buying the generic or store-brand version of foods will save you money. Foods like pasta, frozen fruit & vegetables, and cereal are some examples of food to buy in the generic brands.

Shop At Cheaper Grocery Stores:

There are a lot of different supermarkets for different budgets, but they do tend to differ in quality. To decide which one you like best you could try some of them out and compare, then stick with the one you like the most.

Here in the UK Aldi is the cheapest supermarket and the food is actually good quality. My favourite crisps (chips in the U.S. lol) used to be Walkers cheese and onion flavour, it has been that way since I was a child. Since shopping at Aldi I have now ditched walkers for the Aldi brand version. I am still in shock about this lol give them a try and let me know what you think.

I have a post that goes into a lot more detail about how to budget and save money on groceries, read here.

Meal Prep:

Meal prepping is an effective way to reduce your grocery bill. It will encourage you to cook at home more and eliminate the need to spend money on eating out.

But If you don’t like thinking about what to cook or you just don’t have the time, I highly recommend this $5 meal plan.

For just $5 a month, you will receive delicious weekly meal plans and grocery lists straight to your inbox. The great thing about the program is the meals cost less than $3 per person! This can help you save a lot of money because you can cook nutritious meals at home instead of ordering takeaways.

You can try it completely FREE here for 14 days. If you don’t like it you can cancel at any time with no problems.

3. Pay Annual Costs Upfront

Paying for things like insurance or subscriptions monthly can be more expensive as they come with a premium.

The company will usually include an admin charge into the amount you pay each month to cover the costs of collecting the payment via direct debit.

If you pay for these types of costs upfront you can save money. For example, if you pay for Amazon Prime monthly the amount you pay each month is $8.99. If you pay this for 12 months it will cost you $107.88, but if you choose to pay the annual cost upfront it will cost $95 which is a $12.88 saving.

This may seem like a small amount of money, but if you did this for all of the bills you pay monthly the savings will add up.

4. Take Part In a Savings Challenge

Taking part in a savings challenge can be a great money saving strategy. You could do it along with your friends and family which can be a good way to hold yourself accountable.

There are plenty of saving challenges you could try, I recommend the 52-week savings challenge. This is a simple but effective way to save money over a long period.

If you stick with this challenge you will develop the habit of saving and hopefully maintain the habit after the challenge.

The way this works is you save the amount of money corresponding to the week. See an example of how it works below.

Week 1 – Save $1
Week 2 – Save $2
Week 3 – Save $3
Week 4 – Save $4

You keep going until week 52 when you will put $52 into savings. If you followed this method at the end of the year you could save $1,378.

You could use this money to pay off debt or put it into an emergency fund.

5. Include No Spend Days

Having no spend days is another good money saving strategy. Implementing this strategy when you are saving has many benefits and is a good way to control your spending.

No spend days are where you go for a set amount of time without spending money on things aside from your essentials. So things like food, rent, utilities, etc. are not included.

I would recommend trying this for a week. The best time to try this is after you have paid all of your bills and done your grocery shopping. This way all of your basic needs are taken care of.

If you did this for 21 days you may start to realise that you don’t need to spend money on a lot of things like coffee and takeaways. You will also find you will get creative, for example, you could try to make your favourite coffee drink at home.

6. Set Savings Goals

When you are saving having a goal is super important. Your goal will keep you focused as you will have a clear target to work towards.

Your goal needs to be specific, measurable, and have a deadline. It isn’t enough to say that you want to save $10k. A better goal would be you want to save $10k in 18 months, this makes your goal specific and gives you a deadline. You then need to make it measurable.

Using the example above of saving $10k in 18 months, if you broke this down you would need to save $556 minimum each month (rounded up) to reach your goal. This is now measurable as you know how much you need to save each month to reach your goal. Now you have a goal and a plan, all you have to do is be consistent and you will be successful.

Related: How To Save $10k In a Year

7. Automate Your Savings

When you are saving you want to make it as easy as possible for yourself. A great way to do this is to have your savings automated.

If we go with the example above of saving $10k in 18 months, you could set up a standing order to transfer $556 each month to your savings account. This way you don’t need to think about it as it is done for you.

8. Create a Budget

A budget is a great tool for your finances. It is used to create a plan for your money, this way when you get paid you know exactly where your money needs to go.

Creating a budget is a great way to get an overview of your finances. Once you know this you will have a better understanding of how much you can afford to save after paying all of your bills and living expenses.

It can also allow you to make adjustments where necessary. For example, if you can see that you are spending too much money on eating out, you can reduce your spending in that area and put the additional money towards your savings goal.

Related: Budgeting 101

9. Find Ways To Cut Expenses

When you are trying to save money the easiest way is to reduce your expenses.

Your expenses are within your control for the most part so you can review your spending and find areas where you can cut back.

I mentioned reducing the amount you spend on groceries above, but you can also look at your subscriptions and cancel the ones you are no longer using.

If you have Netflix but haven’t watched it for 3 months, you may as well cancel it and save the money.

If you have any services coming up for renewal like Internet or cable this is a good time to negotiate a better deal. Most companies want to retain their customers, so if you explain that you love the service but can’t afford to pay it at the current price they will usually offer you a deal.

If that fails you could check price comparison sites and see what the best deals are in your area. I use this website and always find good deals.

10. Eat Out Less

Eating out is convenient but it is expensive, if you cut back on this you could save a lot of money. Most people eat out because they enjoy the food, but it is also because they are not prepared.

At least I know that is the case for me lol

To combat this, you could plan your meals in advance. An easy way I have found to do this is by creating a weekly menu and buying the groceries I need to make those meals plus some snacks.

This way I am prepared, I know what I am going to eat throughout the week and I have the ingredients to make the meals. When I cook I will also make enough to have leftovers the next day.

11. Plan Big Purchases In Advance

If you know that you have big purchases coming up why not save up for them? For example, if you travel every year, you could make a savings plan for the costs.

The benefits of this are you won’t have to use your whole paycheck or a credit card to pay for the costs upfront.

You could create a sinking fund for the costs. I have a post going into more detail about sinking funds, read it here.

12. Use The 30 Day Rule

Implementing the 30 day rule when you are trying to save money can be a great strategy. This works by waiting 30 days to think about a purchase before committing.

During the 30 days, you should think about whether the purchase is a need, a want, or an impulse buy. You should also consider how you will pay for it, for example, will you have to put it on your credit card? Or do you have the money within your budget to pay for it? After 30 days have passed if you still want the item you will know it isn’t an impulse buy and you will also have a plan to pay for it.

13. Pay Off High-Interest Debt

Paying off high-interest debt is important for your finances and it will also help you to save more money.

Consumer debts such as personal loans and credit cards come with high interest rates which makes the debt expensive.

If you prioritise paying off this debt, you will free up more money in your budget to contribute towards saving.

Money Saving Strategy Tips:

Save Smart

If you are saving for medium to long-term goals, I would recommend putting your money in a high-interest savings account.

Using these accounts for your savings is a great way to earn money while you are saving. Currently, the interest rates on savings accounts are high due to inflation so I would take advantage and lock them in while you can. Ensure you can afford to lock the money away and read the terms before committing as you will be liable for fees if you pull your money out before the agreed term.

Sell Unwanted Items

When you are saving money you either need to reduce your expenses or increase your income. Selling unwanted clothes or items is a great way to make some extra money to add to your savings.

You can declutter your home, make a pile of items you no longer want or need that are in good condition, and sell them on eBay or Vinted.

I have a post going into detail about selling clothes on eBay, you can read it here.

Buy Groceries In Bulk

As I mentioned earlier food is one of our biggest expenses, another way to save money on food is to buy it in bulk.

Buying foods in bulk is cheaper as you end up paying a lot less per unit than you would in regular supermarkets. You will also benefit from reducing waste as you buy the exact amount you need and your food will last you longer.

Benefits of Saving Money

When you have money saved up it gives you a sense of independence. You know that you have a safety net to fall back on in case of an emergency like job loss.

Having savings can also help you avoid getting into debt because you no longer need to rely on credit cards or loans to pay for any unexpected costs.

If you had to pay for unexpected car repairs, for example, you could cover the costs without stressing about where the money was coming from.

This can help to reduce money-related stress and anxiety which will help you to sleep better at night.

Mastering the habit of saving is the first step to creating financial independence. Once you have enough money saved up to cover your living expenses and any emergencies you can then start to put your money in places to grow.

How To Start Saving Money

To get started saving money I would recommend starting small, this will help to get you into the habit of saving without feeling overwhelmed.

Review your budget and decide on a realistic amount of money you can afford to save each month. If you can only afford $50 for now that is fine, it is better than nothing.

If you saved $50 a month consistently at the end of the year you will have $600 saved up.

I would recommend including this amount in your budget as an expense, this way it is accounted for as money that you can’t spend.

Once you have decided on the amount you want to save set up a standing order to transfer the money from your current account to your savings account automatically.

This way it is done for you and you don’t need to think about it.

Review your savings account regularly and watch your money add up. Once you start saving consistently it will become a habit. After this point, you can then create goals for yourself.

For example, you can decide to save up for a property deposit, a new car, etc.

It is essential to start slowly and build up when beginning your savings journey. If you try to set goals that are unattainable and fail you will be put off saving and we don’t want that.

So start slow, stay consistent, and then build up to bigger goals once you have made saving a habit.

Saving Money Skills:

Saving money really comes down to simple maths. When you get paid you set aside a certain amount of money consistently and it adds up over time.

But in reality, it isn’t that simple, some factors affect saving such as bad spending habits or not knowing how to get started.

In my experience with saving, there are 3 important skills I have developed that have helped me save a lot of money and reach my goals. I will share them below.

Discipline

When you are saving money you need to be disciplined, you need to make the choices that align with your goals. This isn’t always easy, especially in the beginning as you are used to spending money on the things that you want.

This is why I recommend starting slow and building up. If you can save small amounts of money over time you will prove to yourself that you can be disciplined and will be more likely to stick with it.

Consistency

As with most things in life, consistency is key! To see results you need to be consistent, but the important thing is what are you going to be consistent with?

You can choose to be consistent with overspending money, or you can choose to be consistent with saving money.

If you choose to be consistent with saving money you will reach your goals with ease as it will become second nature. Your mindset towards money will also change in this process as you will prefer to watch your savings grow rather than spend it on things you don’t really need.

Patience

Patience is a very important skill when it comes to saving money. Reaching your savings goal won’t happen overnight, it takes time and this can be hard especially when you have a long way to go.

You need to be patient and know that although you are not seeing big things happening right now, over time it will happen.

One other thing I have learned when it comes to saving is that it doesn’t matter how much money you make, what matters is what you do with it.

So if you keep your expenses low and save consistently you will reach your money goals with ease as you will have mastered healthy money habits.

Final Thoughts

Saving money can be difficult in the beginning, but it is important for your finances as it is the foundation for creating financial independence.

Once you have the right strategy in place it can make saving money easier. Strategies like taking part in saving challenges can be a great way to help you get started as you will have a community to keep you accountable. Once you are disciplined with your spending habits and make saving a habit you will be able to save money with ease.

Have you found these saving strategies helpful? Which approach will you implement? Let me know in the comments below.