Can you imagine what your life would be like if you saved 50% of your income? It would be incredible. You’d be able to save more than just for rainy days. You could have a cushy emergency fund, have plenty of money to spend on your passions and travel, invest in real estate, and so much more.
Here’s a list of 20 ways you can find places to save money, cut your spending and pay less out of your pocket. Let’s get started and teach these smug spenders a lesson.
20 Tips to Save 50% of Your Income
Automate transfers
Automating your savings is one of the best ways to make sure that you’re saving money each month.
You can set up automatic transfers from your checking to your savings account for a specific amount at a specific time of the month, and it’s easier than ever with online banking.
Count your coins and bills
You might be surprised at how much money you have lying around that you don’t even realize is there.
Counting your coins and bills every so often will help you keep track of how much money is coming in, which will make it easier to budget accordingly.
Restrict online shopping
You know that you can’t resist the urge to purchase something on sale when you see it online. But if you want to save money, try not to buy things online unless they’re absolutely essential (like groceries). If there’s something you really want but wouldn’t buy if it wasn’t on sale, then don’t buy it at all.
Bundle cable and internet
If you’re paying for internet and cable separately, you might be able to save money by bundling them together. Many providers will offer a discount if you bundle your services into one bill.
This can be especially helpful if you have multiple people in your house who use the internet and watch TV.
Set savings goals
It’s important to have a plan for saving money so that you don’t end up spending it all before it even hits your account. If you know what you want to spend your savings on, it’s easier to stick to an amount that will get you there.
You could also set up automatic transfers from each paycheck directly into a savings account so that the money goes away before you do.
Track spending
Once you’ve got a budget in place, it’s time to track where all of your money is going each month so that you can see where it’s being wasted on unnecessary expenses or over-the-top purchases (like those shoes).
It may feel tedious at first, but once you start seeing where things are getting out of control, it’s easier than ever before to make changes and put yourself back on track.
Get creative with gifts
Instead of buying expensive gifts for your friends and family members, get creative with homemade gifts that they’ll actually appreciate and use! For example, give them tickets to an event that they love or make them a personalized collage of photos from past vacations or parties together.
Lower your car costs
You can save a lot of money by buying a used car and driving it until it dies instead of trading in a new car every three years. You can also keep your car running smoothly by doing regular maintenance checks and making sure there are no leaks or other problems that could lead to costly repairs down the road.
Switch your cell phone plan
If you have a family plan with multiple lines, consider switching to a single line. You’ll likely be able to get better service and better phones at a much lower price.
Reduce your electric bill
Install LED light bulbs and turn off lights when they aren’t in use. These small changes can add up over time and make a big difference in your monthly bill.
Lower your student loan payments
If you have student loans, it may be worth applying for an income-driven repayment plan or refinancing them at a lower rate via SoFi or Earnest. You could shave years off the length of your loan and save thousands of dollars in interest payments by doing so.
Cancel unnecessary subscriptions
If you have a subscription service that you don’t use, cancel it immediately. The longer it stays active, the more money it will cost you. Examples include premium cable channels, magazine subscriptions, and paid apps that you don’t use anymore.
Refinance your mortgage
You can lower your monthly payments by refinancing your mortgage or home equity loan. You might be able to get a lower interest rate on a new loan and pay some closing costs upfront, which will reduce your monthly payments over time.
Reduce your gas usage
If you’re driving around in an older vehicle with poor mileage, consider trading it for something newer or more fuel efficient. If your commute is short enough, consider walking or biking instead of driving every day.
Or if possible, carpool with coworkers or friends who live nearby so that you can share the cost of gas while reducing emissions and traffic congestion in your area.
Prep for grocery shopping
Going grocery shopping with a list can help you save money on groceries because it prevents impulse purchases (and it will help keep you from eating out when you get home).
Take some time before going to the store to plan out meals and write down what ingredients are needed for each dish, that way nothing gets forgotten. Plus, by getting more organized, you’ll save time in the long run too.
Minimize restaurant spending
Rising food costs have made eating out more expensive than ever. If you want to save money, you should avoid eating out as much as possible and cook at home instead. You can easily save 50% of your income by making this simple change in your lifestyle.
Get discounts on entertainment
Many of us get hooked on entertainment like concerts, sporting events, and going to bars with friends. We spend lots of money on these activities without even realizing it.
To avoid spending too much money on entertainment, try to get discounts through Groupon or other programs that help you find great deals on everything from restaurants to fitness classes.
Map out major purchases
Before buying a new car or making any other big purchase, map out how much it will cost you over time by adding up all monthly payments and yearly insurance premiums into one number so that you can see exactly how much the item will cost you over time before making the purchase decision based on those numbers rather than price alone.
Pay off high-interest debt
High-interest debt can quickly eat up your paycheck, so it’s important to pay off any high-interest rate loans as soon as possible. If you have a credit card balance with an APR over 20%, for example, consider transferring your balance to a lower-interest card or paying it off with a personal loan.
Keep savings in a high-yield savings account
It’s important to keep money in an emergency fund so that you have something to fall back on when unexpected expenses arise. But if you’re trying to save up for something big like a down payment on a house, keep your emergency fund separate from your other savings accounts.
That way, if you need to access it for an emergency, there won’t be any temptation to dip into it for something else later on down the road.
Create a 50/30/20 budget
A good rule of thumb when managing money is that 50% goes toward needs (essentials like housing, food, and utilities), 30% toward wants (apparel, entertainment), and 20% toward savings and debt repayment.
A budget helps keep track of how much is going where so there aren’t any surprises at the end of each month.
