How to Save Money Each Month? (24 Best Ways)

Do you want to know how to save money each month? Saving money should be included as part of your monthly expenses. It can help you build an emergency fund, pay off debt faster, and begin investing for the future. But saving money each month isn’t always easy. Especially when it feels like there’s no room in your budget to put spare cash into a savings account. But there are ways of doing it.

1. Create a monthly budget

There’s nothing more important than knowing where your money’s going. Having a monthly budget will help you save money.

We’ve all got monthly expenses. There are things like council tax to pay, a mortgage payment to make or energy bills to cover. You need to allocate money for these monthly bills. Then you need to work out how much you need for your less essential costs like Netflix, going out and birthdays. But only by doing a budget will you see where you can cut back.

Having savings goals will help you allocate money into a savings account as part of your budget.

2. Track your spending

You may have a rough idea of how much you spend on things each month, but do you know the exact figure? It’s easy to spend on the odd takeaway or coffee and snacks here and there. But it’s only when you track how much you spend on things that you realise where you’re overspending.

You can track your spending by keeping your receipts and adding them all up. Or you could set up a spreadsheet and enter all your spending on it. There are apps you can use that help you track your spending too. When you see where your money’s going you can change your spending habits.

3. Automate your savings

Not many of us have piggy banks anymore. With money changing hands without us handling any cash, it’s easy to save money in the same way. By setting up a standing order from your bank account, you can transfer money into savings accounts every month. By timing it to go out when your wages go in, you’ll hardly miss it.

Think of it as paying yourself. You’ve worked for that money, so why not put some aside for your future.

4. Pay off your debts quickly

If you’re paying interest on debts, it’s likely to be higher than what you’ll get from your savings. That’s why paying off your debts comes first unless you’re paying no interest. Credit card debt is where you’ll find you can get a limited period which is interest free. Credit card accounts are good for transferring debt onto if you can get a promotional offer like this. But be aware that they’ll charge you a transfer fee.

Once you’ve cleared your debts, put those monthly payments into a savings account instead.

5. Use a credit card with rewards or cashback offers

Using a credit card that offers a reward of some kind can help you save money.  Whether its points that you can convert into vouchers or cashback on your purchases, it’s a good benefit. And it’s usually free.

You must remember to pay off the balance at the end of the month so that you don’t build up credit card debt. But if you’re going to spend the money anyway, you may as well get something back for it.

6. Reduce your mortgage payments

Do you know what the interest rate is on your mortgage? If you’re paying the standard variable rate, then there may be a better rate you could move to. Find out if you could be paying less. By moving onto a fixed rate, you could reduce your mortgage payment. And having fixed payments for a period make it easier to budget as you know what your payments are each month.

7. Create a “no spend” day each week to save money

This is a nice challenge to set yourself. See if you can go a whole day each week without anything going out of your bank account. You may think you have loads of no spend days already but they’re probably few and far between.

Once you get good at this, try adding a second day. It helps you notice where you’re spending unnecessarily.

8. Cut back on eating out

Eating out isn’t just meals in restaurants, it includes the quick stops in cafes for a cuppa and a cake. Every time you eat out you’re paying for more than just the coffee and the snack. You’re paying for the café’s overheads, so it costs a lot more than if you had the snack at home.

If you’re heading out for the day, take a flask with a hot drink in it and your own snack. You’ll be surprised at how much you can save.

9. Save money each month by planning your meals in advance

Are you the type who just buys what you fancy on the day and doesn’t plan your meals? If you live day to day, it not only ends up costing you more but you’re more likely to be tempted with fast foods.

Take time once a week to plan what you’re going to eat each day, then put the ingredients you need on your shopping list. It not only saves you money, but it also helps you cut down on waste. When you know you’ve got something planned for dinner, you’re less likely to pick up a takeaway on your way home.

10. Declutter and sell things you don’t need

Many of us have homes full of things we don’t need or no longer use. You only have to look through your wardrobe and you’re likely to find items you don’t wear. Selling your unwanted things is an easy way of giving your savings pots a boost and it doesn’t take a lot of time. Apps like Vinted let you sell your clothes and accessories quickly and easily.

11. Downsize your living space

Are you living in a home with rooms that you don’t live in? If you’ve got extra space you don’t use it makes sense to downsize. It’ll not only save you money on your monthly rent, but it’ll also save you money on your energy bills.

If you do downsize, make sure you put the money you save straight into savings. Don’t be tempted to see it as more money to spend.

12. Pay in cash

Paying for your shopping in cash is a good trick to stop overspending. By leaving your cards at home and paying with cash you can’t buy more even if you want to. It helps to encourage you to choose what you need rather than just adding what you fancy to your trolley. It also helps you stick to your budget as you only take the cash that you’ve allocated to that spend. And this helps you achieve your savings goals.

13. Shop at grocery stores that offer discounts

Some shops offer bigger discounts than others. Before you go shopping, do the research and find out who’s offering the best deals. You’ll usually find that grocery stores like Aldi and Lidl are the cheapest, and their quality is good too.

It might seem like you’re only saving small amounts here and there. But overtime you can make some significant savings on your weekly shop.

14. Bulk buy to get extra discounts

Buying in bulk often means you pay less per item compared to what you would pay for them individually. Items like toilet roll or tinned food often work out cheaper if you buy them in bulk. As long as you’ve got somewhere to store them, it’s worth doing. You can make some good savings.

15. Use cashback apps when shopping online

Cashback sites are an easy way to make money for doing your shopping. This is how they work.

1. You register on the cashback website
2. You click through to the company you want to shop with from the cashback site
3. If you buy anything, a cash amount is put into your account on the cashback website
4. You can withdraw this cash into your bank account

The amount you can earn will depend on what you buy and how much you buy. But it’s free money so it’s worth giving it a go.

16. Shop second-hand and save extra money

Charity shopping is great if you love a bargain. You’ll be surprised at how good some of the items are that go on sale in charity shops. You can find good quality labels at rock bottom prices. Just because it’s second hand doesn’t mean it’s not good quality.

Look on marketplace sites for second hand furniture and other items too. If there’s something you need but can’t afford to buy it new, look at what other people are selling. You might get what you want as good as new even though it’s second hand. And you’ll save money in the process.

17. Try swapping items with friends to get what you want

There are bound to be things that you have at home that you don’t need and could swap with friends. You could organise a ‘bring and swap’ night. Someone hosts it and everyone brings items they don’t want. You all get to choose what you want from all the stuff that’s there. What’s left over at the end of the night could be sold or given to charity. It’s an easy way to get things you want while having time out with your friends.

18. Don’t shop when you’re bored

If you go browsing round shops or online just to kill time, there’s a chance you’ll buy for the sake of it. You might be tempted to spend on something that you wouldn’t otherwise buy. If you’re bored find another way of entertaining yourself. Read a book, go for a walk, call someone for a chat, just avoid the shops!

19. Save on fuel by carpooling or taking public transportation whenever possible

With the costs of fuel being so high, using your car can be costly. Find ways to save money by using it less. Share lifts with other people who are travelling to the same destination or take public transport. If you can get a season ticket to commute to work you may find you could manage without a car. Cars can be a big drain on your finances. If you must have one, consider changing it for one that’s cheaper to run.

20. Reduce your monthly electric bill

Energy costs keep rising but there are small things you can do to help bring down your electricity bill. Even better, you’ll be doing your part to save the planet!

• Check you’re on the best rate by switching supplier or call your current supplier to get the best deal
• Don’t leave electrical items on standby, unplug them
• Don’t boil more water than what you need in the kettle
• Wash clothes at a lower temperature
• Don’t put the dishwasher or washing machine on unless they’ve got a full load

21. Take shorter showers

Having a long shower costs money. By getting into the habit of jumping in and out quickly can save you money on your energy bill. If you’ve got a water meter, it’ll save you money on your water bill too. Try turning the shower off while you’re soaping yourself down then turn it back on to rinse off. And challenge yourself to get it done in 4 minutes.

If you use a gym, use their showers to save on your own energy bill.

22. Reduce your phone bill

You might think you need unlimited data on your mobile phone, but do you? When you look at how much data you use, you might be surprised that it’s not as much as you think. With free Wi-Fi being offered in so many places these days, we don’t need as much data as we used to.

Look at how much you’re paying for your mobile phone and see if you can pay less.

23. Shop around for better loan terms

If you need to borrow money, take time to find the best deal for you. You can save money by paying less interest. Taking out a loan to consolidate other debt is a good way of reducing your outgoings and managing your debts. But make sure the interest is lower on the new loan compared to your existing one.

24. Look for better deals on insurance

Whenever you’ve got an insurance policy that’s up for renewal don’t just accept the renewal quote. There’s a good chance you’ll be able to get it for less.

• Call the company offering the renewal quote and ask how much they can discount it by. They’ll usually be able to reduce it.
• Shop around. There are a few comparison websites you can use or go direct to other insurance companies. It’s worth doing as you could save £50 or £100 on some insurance quotes.

Final words

Saving money is often something we don’t give a lot of thought to. Unless there’s something specific we want to save for, it’s easy to just spend all our money on what we want now. But saving is a good habit to get into, and having savings goals will help. Set up saving accounts and label them with what you want to save for. It could be for an emergency fund, for a holiday or for your when you retire. But having money in savings accounts will give you a sense of security. And it’s something your future self will thank you for.

FAQs – how to save money each month

Disclaimer: The information given above is provided for reference only. This is not financial advice.