Want to learn how to save money quickly? These practical budgeting tips will help you build your savings fast.
Saving money quickly can be a challenge, especially when unexpected expenses arise or when you simply want to reach your financial goals faster. But with some discipline and strategic planning, it is possible to save money fast.
How to Save Money Quickly: 15 Tips to Follow
By implementing some simple and effective money-saving tips, you can quickly build up your savings and achieve your financial goals. Benzinga breaks down real ways for how to save money fast today.
1. Set A Clear Savings Goal
The first step to saving money quickly is to set a clear and achievable goal and timeline. Whether you are saving for a bill due in two months, a vacation or a new car in a year or just an emergency fund, having a specific target in mind will help you stay motivated and focused on your savings efforts.
2. Track Your Budget
One way you can achieve instant savings is by downloading a budget app. Budget apps can help you track your expenses so you can see where your paycheck goes. For example, your paycheck can show you how much you spend on groceries and rent each month.
Once you download a budget app, enter your salary and recurring expenses. You’ll easily be able to see where overspending occurs and how you can save. Downloading a budget app only takes a few minutes.
3. Eliminate the Extras
If you usually eat out for lunch several times a week, pack your lunch instead. Get in the habit of bringing in your own snacks from home. Cook meals in batches and freeze them instead of ordering late-night pizza or eating out. Opt for a reusable water bottle instead of buying bottled water from the vending machine and skip the line at Starbucks and brew your own lattes at home.
4. Buy Cheaper Staples
If you need basic staples like paper towels, cups and plates, shopping at a dollar store will save money. Paper towels at a regular store can set you back $3 or more versus $1 at the local dollar store. If you need eggs, bread and milk, you could pay $10 or more at a traditional grocery store, but those same items at a discount supermarket chain may cost only $4.
5. Cut Back on Utility Bills
Utility bills eat up a huge portion of your monthly income, so it is best to find ways on reducing them. Turn off unused appliances, swap to LED light bulbs or bundle your cable and internet.
6. Cancel Unused Subscriptions
Never go to the gym but pay for an expensive gym membership anyway? Have Pandora or other subscription services but never use them? The best way to save money is to live within your means. If you cancel something you’ll never miss, you’re money ahead. Make a list of all the subscriptions and memberships you own and nix those you never use.
7. Take Advantage of Discounts and Deals
When shopping for essentials such as groceries, look for discounts and specials that can help you save money. Use coupons, shop during sales and compare prices to find the best deals. By being a savvy shopper, you can save money on everyday purchases.
8. Sell Items That You Do Not Need
Selling items that are no longer needed can free up space in your home and provide extra cash. Start by decluttering, research the value of items, choose the right platform to sell on, take quality photos, write detailed descriptions, set a fair price, and be responsive to inquiries from potential buyers.
9. Pay Your Bills Online and On Time
Ever been late on your credit card bill and paid a late fee as a result? Pay your bills online to avoid this situation. Many credit card companies charge $35 or more if you’re even one day late on your payment. Consider signing up for automatic bill pay through your bank or download a bill paying app to help you track and pay your bills so you’re never late. Some apps will send you a notification a day or two before your bill is due so you won’t forget.
10. Maximize Credit Card Rewards and Bonuses
If you are using a credit on your everyday purchases, learn more about its rewards structure and fees to get the most out of it. Credit cards often offer rewards or cash back, which can be put directly into savings. Cashback rates can reach up to 5% to 8%, depending on the card issuer. Using the card frequently can significantly increase your savings.
11. Open a Second Bank Account
Many banks offer immediate signup bonuses up to $500 just for opening an account and making a deposit. It’s worth finding out how to set up direct deposit. Often, these bank incentives require a one-time direct deposit of $500 or more, and once you do that, they’ll deposit $300 to $500 in your account within a few months. That’s extra money in your pocket, and it can be a smart idea to open a bank account solely for saving money, especially if you take money out of your other savings account when you need it.
One account Benzinga recommends is a savings account with Credit Karma. It offers one of the highest APYs in the market and has no account minimums and no fees.
12. Take on a Side Hustle
For a major boost to your wallet, why not take on a second gig? There are many online jobs on sites like Indeed.com or Upwork that can help you secure another source of income.
Also, consider your talents. Start a resume-writing service if you write well. If your cupcakes get rave reviews, start a small side business. Use the extra money you earn to increase your income.
13. Check Out Your Insurance Plan
If you have a health maintenance organization (HMO) health plan, there’s a good chance that it offers financial incentives or rewards just for completing an annual physical or maintaining a healthy BMI. Log in to your plan’s website and search for rewards. Some will reimburse you for exercise equipment or a gym membership. Read your plan’s explanation of benefits to learn more.
14. Open a High-Yield Savings Account
If you don’t have a high-yield savings account now, open one. You don’t have to stick with your current bank if you can find an online bank that can offer more of a return. Or consider CDs or money market accounts, depending on your risk tolerance.
15. Follow the 30-day Rule
The 30 day rule is a personal finance strategy where you wait 30 days before making a non-essential purchase to determine if it is something you truly need or just a want. Impulse buying can wreak havoc on your savings goals. This rule helps prevent impulse spending and encourages more mindful and intentional purchases.
Small Changes Add Up
Saving money is a personal journey that requires discipline, patience, and perseverance. It may not always be easy, but by finding the right combination of tools and practices that work for you, you can make significant strides towards achieving your financial goals.
Remember that saving money is not just about cutting back on expenses, but also about gaining control of your finances and creating a more secure future for yourself and your loved ones. Whether you need money now or a year from now, these tips don’t require a lot of effort. By making a few small changes, you can save money for the important things you need.
Frequently Asked Questions
How can I save $1000 fast?
You can save $1000 quickly by cutting back on unnecessary expenses, setting a strict budget, selling items you no longer need, picking up a side job or freelance work and putting any extra cash you receive into a savings account. It will require discipline and sacrifice, but it is achievable with determination and focus.
How to save $5,000 ASAP?
To save $5,000 as quickly as possible, you could try cutting unnecessary expenses, finding additional sources of income and setting a strict budget to track your spending.
About Laura Hipshire
Expert-level knowledge of Medicare Advantage plans and regulatory guidelines