There are plenty of ways to bring new money in. Taking on another side hustle, renting out your driveway, renting your RV, and making money online are just a few ideas for boosting your income.
But what about controlling how much of your money goes out?
Sure, the financial gurus preach that your expenses should never exceed your income, but what if the age-old advice “save more money” just isn’t cutting it for you? If you’re looking for more actionable tips on how to reduce expenses, we have expert-approved advice on how to save money…fast (That isn’t generic or vague).
Saving money shouldn’t feel like a full-time job (or even a part-time one). Remember: spending countless hours clipping coupons by hand isn’t the only way to cut costs. For money-saving tips that are as time-efficient as they are cost-efficient, read on!
The Cost-Cutting Strategies You Need to Know About
Regardless of what catalyzed your sudden interest in saving, there’s no time like the present to start saving.
Whether you’re saving up for a five-night cruise or saving up for retirement, there are ways to achieve your savings goals:
- Audit Yourself
- Make Your Savings Automatic
- Consolidate Debt
- Use “Spending” Cash
- Use the 24-Hour Rule
- Go on an Amazon Detox
- Get Off Social Media
- Switch to a Cheaper Cell Phone Plan
- Use Coupons
- Plan Your Grocery Shopping
- Put Air in Your Tires
- Use a Water Filter
1. Save on Storage
As of May 2022, almost 10% of all U.S. households are currently renting a storage unit. With millions of Americans paying rent on a storage unit every month, it’s not unlikely that your family is one of the countless families overpaying for storage.
According to Neighbor’s Self Storage Statistics guide, the average monthly cost of a traditional 10’x10′ storage unit, one of the most popular storage unit sizes, hovers around $94.28 per month. However, when renters leverage the sharing economy to their advantage and opt for a peer-to-peer storage marketplace like Neighbor—rather than traditional storage facilities—they can save up to 50% on monthly storage costs.
Saving money is as simple as ending your current storage unit lease and booking storage through Neighbor’s easy-to-use platform. As a bonus, with a peer-to-peer storage option, you’ll not only save money—but time, too. Rather than driving 15 minutes to an off-site storage site, you can find storage options in your very own neighborhood.
2. Use “Spending” Cash
If you’re looking to save money fast, using cash exclusively is a great start. Rather than walking around with a debit or credit card—a debit card you can mindlessly (and endlessly swipe)—allot yourself a weekly allowance you cannot go above. Then, withdraw this amount from an ATM. With only physical cash to spend, you’ll be able to curb your frivolous spending habits.
But how? Because there is something about using cash versus a plastic card. Using cash feels more substantial and gives you a moment of pause before purchasing something you probably don’t need. Plus, cash is a physical manifestation of your hard work. For this reason, you find yourself feeling more protective over your hard-earned dollars, which will help you limit your spending.
3. Put Air in Your Tires
This tip may sound odd, but adequately inflated tires can save you a surprising amount of money on gas. Invest a few quarters into an air machine and track the dollars you save.
According to the NHTSA (National Highway Traffic Safety Administration), “properly inflating your tires can save you as much as 11 cents per gallon…”
4. Switch to a Cheaper Cell Phone Plan
You may be overpaying for your cell phone plan. Do some research and talk to your friends about what they are paying. If you are paying substantially more, either talk to your carrier or consider switching to a new cell phone provider.
If your current carrier suspects that you plan to switch carriers, they may offer you a better rate just to win back your business.
For other tips on how to cut your cell phone bill by up to 50%, check out this article.
Platforms like Facebook and Instagram are hotbeds for targeted ads. Experts estimate that we encounter thousands of ads per day, with the bulk of those ads popping up on our social media accounts.
Because social media is one of the main avenues through which people are introduced to new (usually unnecessary) products and services, limiting your social media usage can be a way to indirectly (and unconventionally) cut costs.
By limiting your screen time, you can limit your exposure to ads (by limiting your screen time), reducing your risk of impulse purchasing that weight-loss supplement or unnecessary pair of wool slippers.
6. Go on an Amazon Detox
In the same vein as the tip above, Amazon is yet another popular culprit of targeted ads. While it may be tempting to skip the trip to the grocery store by stocking up online, one effective way to save money fast is by going on an “Amazon detox.” Simply stop buying things off Amazon for a month. Full stop.
While these Amazon shopping sprees may not seem any different than making a trip to the grocery store, a traditional grocery store won’t make product recommendations every time you pick an item up off the shelf, thereby increasing your risk of buying things you don’t need.
7. Plan Your Grocery Store Run
Before you walk into a grocery store, make a plan, so you know exactly what you need to buy. Arriving without a grocery list in hand makes you more susceptible to impulse buying (which can cost you big bucks).
One way to avoid impulse buying at the grocery store is to never go shopping hungry. Eat a big meal and then head to the grocery store. If you make a list on your phone, you can be in and out in no time with more money in your wallet.
8. Use a Water Filter
Instead of buying bottled water, buy a water filter and a reusable water bottle (…but not from Amazon. Remember, you’re quitting cold turkey).
Bring your reusable water to the grocery store, the park, the mall, the office, and other venues where you’re more likely to splurge on the $3 water bottle out of sheer desperation.
Less plastic waste is not only good for the environment but your wallet, too.
9. Use Coupons
Some age-old advice is age-old for a reason. Yes, coupons are still a thing. And yes, they can still save you money. Unlike 20 years ago, using coupons doesn’t need to involve cutting little squares out of your local newspaper. Instead, you can use sites like Groupon and BeFrugal to save money.
10. Use the 24-Hour Rule
Another way to save money fast is by initiating a “24-hour” rule into your life. Any time you are thinking about making a purchase greater than $100, make yourself wait for 24-hours before proceeding. This will break your habit of unnecessary, impulse buying.
11. Consolidate Debt
Consolidating your debt is a good way to organize your bills and help you save more money fast. By bundling multiple loans and other expenses into one unified bill, you can often reduce interest rates and save yourself money in the short and long term.
12. Finally, Audit Yourself
If you are wondering how to save money fast, the first thing you need to do is audit yourself. Pull up several months’ worth of bills (preferably three or more), and then break these bills down into categories. Are you spending most of your disposable income on to-go orders? Is the bulk of your paycheck going toward childcare costs or other essentials? By “auditing” your monthly expenses, you’ll gain a clearer picture of where and how you’re spending most of your money.
As you analyze your spending habits, try to break them down into the following major and minor categories.
Major Spending Categories
Rent or Mortgage: Ideally, only 30% or less of your monthly salary should go toward rent or mortgage payments. If you’re paying more, it may be time to move to a new apartment complex or downsize your home. If you’re currently renting, you can also save money on rent by finding a roommate, negotiating during your lease renewal, or referring a friend (Most apartment complexes offer renewal bonuses that can deduct your total rent costs).
Car Payments: You shouldn’t be dedicating any more than 10% of your monthly income to your car payments. If you are, you may have overextended yourself. Before signing on the dotted line, calculate 10% of your total monthly income and use this number as a budgetary guideline The last thing you want to do is lock yourself into a 72-month car lease on an overpriced vehicle.
Gas: Paying for gas is a necessity for most. If you feel you are paying too much in gas, you can get a more fuel-efficient vehicle, or you can start carpooling or research cheap gas stations that may save you a few cents per gallon.
Food: Food costs are one major area where most people can save. Figure out how much you are spending on food on a daily basis and then see if you can save by cooking at home. You may be able to afford to eat out once or twice a week, but if you want to know how to save money fast, you should increase your at-home cooking and decrease how often you are going to restaurants.
Minor Spending Categories
Utilities: Depending on whether your utilities are included in your rent or something you purchase on your own, you may have little or complete control over this category of spending. If you can, try to reduce your consumption of heating fuel, water, and electricity. Unplug appliances that do not need to always be plugged in, take a shorter shower, and turn down the thermostat a couple of degrees.
Entertainment: Entertainment can include things like renting movies, streaming service subscriptions, books, and the like. Spending a small percentage of your income on entertainment is nothing to chastise yourself about. But, if you want to save money fast, you should try to limit your subscription payments. Instead of subscribing to Disney Plus, Hulu, and Netflix, you can pick just one—at least for a while.
Nightlife: Nightlife expenses like admission fees and buying drinks are another major area where most young people can dramatically cut costs. Rather than wasting money on overpriced drinks, you can try new hobbies, have friends over at your place, or simply find a cheaper bar.
Retail Purchases: It is harder now than ever to cut down on retail purchases as companies like Amazon and others target product ads at us every time we go online. One way you can reduce your spending is by staying off social media and reducing how much exposure you have to ads. Also, you can create a set amount of money that you are allowed to spend on retail purchases every month and refuse to go above it.
After breaking up your spending like this, it should be much easier to see where you are spending too much and to track your monthly spending. This can help you to know that you are progressing in the right direction.
Ways to Speed Up Your Spending Audit
If dissecting your finances manually sounds daunting, don’t worry. Apps like TrueBill and Acorn can simplify the process. Because most online banking apps automatically break down your spending for you, conducting a spending audit is probably easier than you think.
Conclusion
Now that you know at least 12 strategies on how to save money fast, you can start thinking about applying some of these same tactics over the long term to save money slowly and consistently for your retirement and future self. It is never too early to start thinking about tomorrow!
Remember, any good savings strategy is best paired with a good passive income strategy. If you’re looking for ways to generate passive income, consider becoming a Neighbor host.
