How to Save Money: 10 Simple Strategies for Every Budget

The amount of savings you need depends on your lifestyle, age, and goals, like getting ready to buy a house or enter into retirement. But if everyone’s savings goals look different, how do you know what sort of financial target you should aim for? It can be helpful to look at public data, like the Federal Reserve Board’s 2022 Survey of Consumer Finances, which offers insights into the saving habits of various age groups. According to the survey, here’s how the average savings amount breaks down by age demographic: 

Under 35 — $20,540

35 to 44 — $41,540

45 to 54 — $71,130

55 to 64 — $72,520

65 to 74 — $100,250

75 and older — $82,800

No matter what your personal savings goals look like, it’s crucial to build an emergency fund to help cover unexpected costs, like getting into an accident or being laid off from work. Most experts recommend saving enough to support yourself for at least 3 to 6 months, being sure to account for expenses like groceries, utilities, and rent or mortgage payments. 

Your savings goals depend on a variety of factors. For example, maybe you’re preparing to buy a home, start a family, launch a business, retire from work, or take your family on a vacation. You might also have smaller, more short-term savings goals, such as replacing your laptop or buying tickets to an upcoming concert. 

Depending on whether your savings goals are large, small, or somewhere in between, here are a few long-term and short-term strategies to consider:

For short-term saving

Consider opening a savings account at a local bank.

Consider getting a certificate of deposit (CD) – a type of savings account where funds can’t be withdrawn before a certain date.

For long-term saving

Consider opening an individual retirement account (IRA), which helps you save for retirement without being taxed on your savings.

Consult a broker about purchasing mutual funds or investing in stocks.

To explore more strategies for reaching your savings goals, check out our tips on how to budget and save money for vacation.

Consumer trends in saving behavior have transformed over time — often in response to economic or technological shifts, such as the emergence of buy now, pay later (BNPL) services. For example, savings were at a low point from 2005 through 2008, when the average American saved between 2% and 3% of their disposable income. Today, 69% of Americans save up to 20% of their monthly income, while 43% save less than 10%, and 28% save more than 20%. 

Age also impacts consumers’ saving behavior, which varies across demographics. According to data from Bankrate, Experian, and other sources, here’s what percentage of each generation is saving for various goals:  

Whether you need to save up fast or you’re steadily working toward long-term goals, here are 10 money-saving tips to help you create a stronger financial safety net. 

1. Monitor your spending

If you want to build up your savings, you need to start by tracking your spending. By monitoring your weekly and monthly spending habits, you’ll gain a clear, detailed, and accurate picture of exactly where your money is going. Once you’re equipped with that knowledge, you can identify areas where it’s possible to eliminate or cut down on spending. For example, you might spot overspending at specific stores, or discover that you’re paying monthly fees for an unused subscription. 

There are plenty of apps and tools designed to help you monitor your spending, with some popular options including Rocket Money, YNAB, and PocketGuard — or, you can simply track your spending by hand with a notebook or spreadsheet.

2. Create and stick to a budget

One of the most important tips on saving money is to set — and stick to — a monthly budget. Creating a budget helps you manage your income wisely by ensuring that essentials, like groceries and utility bills, are prioritized over less important items, like spending on hobbies. While there are numerous budgeting strategies, one of the most popular — and effective — is the “50/30/20” rule. Its name comes from the way this budget breaks down spending into three categories: 

1. 50% of your income should be spent on needs, such as rent, groceries, medical care, utility bills, and paying off debts

2. 30% of your income can be spent on wants, such as leisure travel, dining out, buying new clothing, or going to concerts 

3. 20% of your income should be put into savings

There are many apps and websites designed to help you build a detailed, realistic budget at any income level. Some popular examples include EveryDollar, Honeydue, GoodBudget, SoFi Relay, and Rocket Money.

3. Pay off debt

Whether it’s credit cards, student loans, or other unpaid bills, any source of debt can place a heavy strain on your finances, especially if the interest being charged each month is high. The sooner you’re able to pay off outstanding debts, the less interest you’ll ultimately pay, and the more money you’ll be able to save in the long run. There are many different approaches to managing debt, so if you aren’t sure where to begin, one of the most efficient strategies is to start by tackling your highest-interest debts first, known as the “avalanche method.” This typically includes categories like: 

Credit card debt 

Personal loans 

Private student loans

Paying off your debts can give you more wiggle room in your budget to add to your savings account, instead of toward monthly or weekly repayments.

4. Establish savings goals

No matter why you’re trying to save money, it’s important to set clear, realistic savings goals at the start of your journey. Setting a target will help you stay focused and keep yourself motivated whenever you’re feeling tempted to overspend. 

It can be helpful to create both short-term and long-term savings goals, like milestones you aim to reach after 6 weeks vs. 6 months, or 1 month vs. 1 year. Setting short-term goals will help you stay on target — and each time you reach the next one, you’ll get a boost of motivation to keep your momentum moving forward.  

5. Reduce unnecessary expenses

One of the best and simplest tips for saving money is to reduce your unnecessary expenses. If you can reduce your spending by just $50 to $100 each month, you’ll save $600 to $1,200 over the course of a year. Here are a few examples of some expenses you might be able to temporarily cut from your budget: 

Beauty products

Concerts and festivals  

Gaming systems 

Gym or club memberships 

Home decor 

Leisure travel 

Restaurants, takeout, and delivery

Streaming services

Unused subscriptions 

You can also reduce your expenses by making minor lifestyle adjustments, like running your A/C or heater less often, buying used instead of new items when possible, and switching to a more affordable phone plan and internet service provider. 

6. Shop smarter

Learning how to take advantage of discounts is an important part of budgeting and saving money successfully. Be on the lookout for sales, digital coupons, promotion codes, clearance items, and manager’s specials. Other ways to save when you shop include buying in bulk, choosing the store brand over luxury labels, and seeking out buy-one-get-one deals on items you already plan to purchase. 

While it’s important to limit unnecessary expenses, you may want to consider exploring memberships to services you use frequently, since they could offer member discounts that outweigh the cost of signing up. Finally, it’s important to do your research and compare prices whenever you shop. Comparison shopping can help you get the best value for your money and avoid overspending. 

7. Leverage free activities

According to research by GOBankingRates, the average American spends almost $300 per month on entertainment, such as movies, TV, music, and games. That adds up to more than $3,560 per year — a number that’s likely to grow even bigger as costs rise due to inflation. 

You can reduce your entertainment spending by exploring free events and activities. For example, your local library is a great resource for discovering free classes and workshops, along with providing free access to books, movies, music, and even items like board games and art supplies. 

You can also find free events by searching online for local meetups, book clubs, hobby groups like cycling or running, volunteer activities, and more. Some helpful resources for finding free events or groups include Facebook, Instagram, Reddit, Eventbrite, Meetup, and Yelp.  

8. Plan ahead for purchases

Unless you need an item immediately, there are often benefits to delaying purchases. For example, the item might go on sale, or you may simply change your mind about wanting to buy it. Planning ahead and delaying your purchases gives you more time to consider whether you truly need the product, along with the best way to pay for it. Some payment methods, such as buy now, pay later (BNPL) services like Zip, let you spread payments out over time so that each installment is easy to manage. 

9. Switch to a high-yield savings account

A high-yield savings account (HYSA) is a type of savings account that earns interest faster than a regular savings account. Instead of earning just 0.41% interest, which is the national average for a regular savings account, an HYSA can earn well over 4% interest, with some offering rates as high as 4.66%. 

Switching to an HYSA can be one of the easiest ways to save money, since it doesn’t require you to make any lifestyle adjustments. All you have to do is research different HYSA options to find the best fit for you. 

Some highly-rated HYSA options to explore in 2025 include Bread Savings, CIT Bank Platinum Savings, and UFB Portfolio Savings, which have all earned perfect 5.0 ratings from the personal finance website NerdWallet. As an alternative, you may also want to explore getting a Certificate of Deposit (CD), which accumulates interest quickly but can’t be withdrawn before a specified date. 

10. Cook at home

According to a US Foods survey of more than 1,000 participants, the average American spends over $160 per month dining out — a figure that adds up to more than $1,900 per year.  Separate research shows that Americans spend over $1,500 annually on takeout delivery apps, such as DoorDash and Grubhub, with the average order costing between $35 and $36. You can significantly reduce your spending in this category just by cooking more often at home, especially if you follow a few basic strategies when you shop. Here are some grocery shopping tips on how to save money by cooking at home: 

Choose store brands or brands that are on sale as often as possible

Look for manager’s specials on high-cost items like meat and dairy 

Stock up on versatile, low-cost items like beans, rice, lentils, and pasta  

Explore recipe blogs that focus on saving money and shopping for less 

If you’re grocery shopping online, be sure to compare service charges and delivery fees along with the actual product prices

How can I save money fast?

Need some tips to save money fast? Examine your monthly spending habits and cancel unnecessary subscriptions. You can also sell unwanted household items, find a side gig or additional source of income, use a budget tracking tool, and cook at home instead of spending money on takeout or delivery. You can also consider automating essential payments, such as rent or health insurance. Putting some or all of these strategies into practice can help you manage your spending and avoid the temptation to splurge on luxuries.    

What is the 30-day rule to save money?

The 30 day rule is a mindfulness-based approach to spending that can help you save money. Instead of purchasing the item you want right away, the idea is to wait 30 days and see if you still want to buy the product. Waiting 30 days also provides two other advantages: it creates more opportunities for the item to go on sale, while also giving you time to compare and research payment methods. 

How much should I save each month?

The amount of money you should save each month depends on various factors, including your income, your age, and what financial goals you’re trying to reach. One popular approach to saving and budgeting, which is called the “50/30/20” rule, recommends saving 20% of your income, or one-fifth of each paycheck. For example, if you earn $5,000 per month, you should aim to save at least $1,000 per month.

The above is for informational purposes only and is not intended to be financial advice. Seek a licensed professional for investment advice.