Money Saving Tips: 9 Essential Strategies

Saving doesn’t have to be difficult or require a complete lifestyle overhaul. Small, consistent changes can lead to meaningful savings over time. Whether you’re looking to build an emergency fund, save for a vacation, or plan for retirement, there are intentional, manageable steps you can take toward your financial goals. Read on for 9 key money saving tips you should know. 

1. Set clear goals for saving money

The first is knowing what you’re saving for. Without clear savings goals, it’s easy to lose motivation or get sidetracked by everyday expenses. To set yourself up for success, start by identifying your savings goals. What is it you’re saving for? How long do you have to save? Settling on the specifics can help you create a successful plan. Savings goals can be short-, medium- or long-term. Examples include:

• Short-term: Saving for a vacation or new gadget
• Medium-term: Building an emergency fund to cover several months of living expenses or having a down payment for a vehicle or house
• Long-term: Planning for retirement or saving for a child’s education

Once you’ve set your goals, try writing up a concrete plan. This could be in a physical notebook, a spreadsheet, a mobile app that helps with budgeting or any other method that works for you. Writing down your goals makes them more tangible and allows you to track your progress.

2. Create a realistic budget

Budgeting can be an effective way to determine where your money is going and where you can start saving. A budget helps you prioritize spending on needs, control splurges and unplanned spending, and set aside money for savings.

There are several approaches to budgeting, but one popular method is the 50/30/20 rule. This suggests dividing your income so:

• 50% goes to necessities (like housing, utilities or groceries)
• 30% goes to discretionary spending (like dining out and entertainment)
• 20% goes to savings and debt repayment

Various digital tools, like budgeting apps, can make it easier to track spending and set savings goals. These tools often come with step-by-step instructions for organizing your finances and setting and sticking to a budget.

Regardless of how you choose to create a budget, the most important thing is to consistently track spending and stick to the budget. It’s also important that your spending and savings goals are realistic – it’s harder to stick to unrealistic goals and easy to get discouraged.

3. Apply for a high yield savings account

If you don’t already have one, consider getting a savings account. There are different types of savings accounts. A high-yield savings account may offer a higher interest rate than a traditional savings account and can help you earn more interest on your money.

When researching high-yield savings account, consider factors like interest rates, fees and minimum balance requirements. 

4. Automate your savings

With many banks, you can set up automatic transfers from your checking to your savings account. Designate a specific amount of money to be transferred from your checking account to your savings account each month. Automatic transfers create a “set it and forget it” approach to saving, removing the temptation to skip a deposit. 

5. Cut unnecessary expenses

One of the easiest ways to save money is to cut unnecessary expenses from your budget. This doesn’t mean eliminating everything you enjoy, but rather identifying areas where you can cut back without feeling deprived. Cutting unnecessary costs is part of creating your budget, but it can help reevaluate you're spending regularly.

Some ways to reduce spending include:

• Evaluate subscriptions: These can include streaming services, magazine subscriptions and gym memberships. Review your subscriptions regularly and cancel anything you don’t use. You can also consider downgrading these services or switching to more affordable alternatives.
• Limit dining out: Eating out can quickly drain your budget, especially if it’s a regular habit. Try prepping meals at home and save dining out for special occasions.
• Wait before you buy: If you’re considering making a non-essential purchase, try waiting a few days (or at least 24 hours) before doing so. You may realize the item was something you wanted rather than needed, or it wasn’t even something you wanted.
• Buy used: Many items may be available used or refurbished. This can help you save money without missing out on something you want.
• Take advantage of free activities: Use resources such as social media or your community event listing to find free or low-cost entertainment in your area. 

6. Use coupons

Couponing is an easy way to save money on everyday purchases. While it may seem time-consuming, it can be easier than you think. Plus, the savings can add up significantly over time.

Before making a purchase, check for coupons or promotional codes from different retailers and brands. Many websites and newsletters provide daily deals, and loyalty programs often offer exclusive discounts.

You can also take advantage of seasonal sales to make larger purchases or stock up on essentials. By planning ahead and shopping sales, you can save money. 

7. Plan your meals and grocery shopping

Food is a major part of any household budget and reducing grocery expenses can have a big impact. One way to do this is a weekly meal plan. When you plan your meals, you can be more specific with your shopping list, which can help you avoid waste and unnecessary purchases.

Another way to save on groceries is by buying non-perishable items in bulk or when they’re on sale. Compare unit prices to ensure you’re getting the best deal. Check for sales on staples like toilet paper, paper towels, rice, pasta or canned goods. 

8. Take advantage of discounts and loyalty programs

Many retailers and service providers offer discounts and loyalty programs that reward repeat customers with savings. These programs are often free to join. Once you’ve signed up, keep an eye out for discounts, sales or limited-time promotions to help you save. 

9. Review and adjust your savings plan regularly

Saving and budgeting effectively requires regular check-ins and adjustments. It’s important to routinely evaluate your progress and adjust your strategy as needed to stay on track. Set aside time each month to review your budget and savings goals. Ask yourself questions like:

• Are you meeting your savings targets?
• Are there areas where you can improve your savings habits?
• Are your financial goals still aligned with your current situation?

Think about your answers and consider what changes you can make to get back on track or save even more.

It’s also important to celebrate your wins. Seeing your progress, especially by reaching a short- or medium-term goal, can be a significant motivator.

This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.