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At Team Clark, your financial success is our main goal. In order to help you save the most money in every way possible, we’ve combined our years of experience at Clark.com and ClarkDeals.com to bring you some of our favorite money-saving tips.
When we talk about ways to save money, we’re talking about two things: Saving more and spending less. In the first half of this article, we’re going to share our best tips for spending less and reducing expenses. If your goal is specifically to have more money in savings, we also have tips for you later in this article.
This article was updated in December 2023 and I review it every six months. Detailed notes on all updates can be found here.
Let’s start with ways that you can save money by cutting costs. In this section, you’ll find tips on how to save while shopping for groceries, dining out, getting gas, finding entertainment, paying monthly bills, getting prescriptions and other ways to save on everyday expenses.
From cutting your cable bill to making small changes to your everyday habits, these tips will help you save more, spend less and get on the fast track to financial success!
Grocery bills can really eat our wallets. Here are a few of our favorite ways to save money on groceries:
If you want to save even more at the supermarket, we have an article with 22 ways to save on groceries. Additionally, you can check out some of our readers’ favorite tips for saving money on groceries (and share your own!) in our Clark.com Community.
Daily commutes and regular errands can empty our gas tanks quickly. Luckily, there are several easy ways to save money on gas:
For more tips on how to save at the pump, check out these 20+ tips for saving on gas.
If you own a car or a home, you’re most likely making monthly insurance payments. Take the time to shop around at insurance companies and compare prices.
You don’t have to wait until your current policy is expired to change auto insurance providers. With most companies, you can leave at any time without having to pay for the remainder of the policy.
If you aren’t sure where to start, Team Clark has a list of the best and worst auto insurance companies as well as the best and worst home insurance companies. If you’re a renter, check out this list of the best renters insurance companies and the ones to avoid.
When it comes to monthly costs, your utility bills are likely big expenses. One great way to lower your utility bills is by cutting down on your heating and air conditioning use. You can do this by dividing your home into zones that will let you heat or cool only the rooms or areas that are being used.
You can control each zone of your home with individual thermostats, or you can take a simpler approach for a less upfront cost. Simply close all of the doors and vents in rooms that aren’t being used to reduce wasted energy. You can also set up fans throughout your home to increase or redirect airflow. And don’t forget to close off your fireplace when it’s not in use to prevent air from escaping.
Another way to save on energy costs over time is by opting for more efficient bulbs. While they may cost a little more initially, they’re going to last longer and use less electricity.
The Department of Energy’s website says that switching to energy-efficient lighting is one of the fastest ways to cut your energy bills. In fact, it says that the average household saves about $225 in energy costs per year by using LED lighting. They recommend that you replace your home’s five most frequently used lights with bulbs that have earned the Energy Star rating.
CFLs use only a fraction of the energy used by incandescent bulbs and last for years. LEDs are a little pricier, but great deals show up for them all the time.
These energy-efficient light bulbs are measured in lumens instead of watts. For a quick reference, here’s a simple conversion chart:
Watts(Incandescent bulbs) | Lumens(CFL, LED or halogen) |
40 | 450 |
60 | 800 |
75 | 1,100 |
100 | 1,600 |
150 | 2,600 |
Source: Energystar.gov
In addition to using energy-efficient bulbs, consider setting up controls like timers and dimmers to reduce electricity usage. For more information on lighting choices, check out this page from the Department of Energy.
Additional ways to cut down on your utility bills include using an electric blanket, cooking strategically (outdoors in the summer; indoors in the winter) and sealing drafts around doors and windows.
For more tips, be sure to check out these 15 ways to save money on utilities.
Cutting the cable cord is another great way to save big on monthly expenses. Check out our comparison of cable versus streaming to see if cutting the cord is a good option for you. If you decide to ditch cable, here are a few great alternatives that could help you save hundreds of dollars per year.
With today’s prices, it’s easy for a household cable bill to reach $200+ per month (though that sometimes includes internet service). By switching to a streaming TV service, you can easily save some real money each month.
Here are the prices for some of the best live TV streaming plans:
DIRECTV STREAM – Choice Package | Fubo – Pro | Hulu + Live TV | Philo | Sling Orange + Blue | YouTube TV | |
---|---|---|---|---|---|---|
Monthly Price | $108.99 | $79.99 | $76.99 | $25.00 | $55.00 | $72.99 |
Free Trial | 5 Days | 7 Days | None | 7 Days | None | Up to 21 Days |
Local Channels Included | Yes | Yes | Yes | No | No | Yes |
Simultaneous Streams | 20 | 10 | 2 | 3 | 3 | 3 |
User Profiles Allowed | 1 | 6 | 6 | 10 | 1 | 6 |
Cloud DVR Hours | Unlimited | 1000 | Unlimited | Unlimited | 50 | Unlimited |
Number of Channels | 131 | 141 | 105 | 110 | 48 | 131 |
If you know which channels you’d like to keep, check out our Live TV Streaming Channel Tool to find the perfect Live TV streaming service for you.
You could be overpaying for your cell service. One way to cut costs is by switching your cell phone carrier. Opting for a smaller carrier is a great way to save big.
If you’re currently using one of the major cell phone carriers, consider switching to one of these smaller alternatives that use the same towers:
You can learn more about Team Clark’s picks for the best and most affordable cell phone plans here.
In addition to your regular monthly payments, everyday purchases can quickly add up. Here are a few ways to save on a day-to-day basis:
For even more ways to save money, consider the following tips:
Now that we’ve reviewed several ways to spend less money, let’s cover a few techniques that can help you accumulate more money in your bank account.
If you’re having a hard time getting started saving money, we’ve got some steps to get you on a path to a more stable financial future.
Just as you wouldn’t start a journey to an unfamiliar place without some kind of map, you can’t really get to a place where you’re saving money without having an idea how to get there. That’s where creating a budget comes in.
A budget lets you see all the money you’re taking in (income) and all of the money that you’re spending (expenses) in one place.
If your expenses exceed your income, you will soon be in debt — if you’re not already. If your income and expenses are roughly the same each month, you are living paycheck-to-paycheck.
The only way to save money is to make sure that you are making more than you are spending each month, and creating a budget is the best way to ensure that.
If you are in debt, your budget should account for paying it off as quickly as possible. It doesn’t usually make financial sense to “save” money when you’re really losing money every month in interest charges.
Once you’ve created your budget and hopefully cut your spending to the point that you’re actually spending less money than you’re making, it’s time to set some goals for yourself and create a plan for how you’re going to achieve them.
Your very first goal for yourself when you start saving money is to build an emergency fund. Your goal with the emergency fund is to have enough money to cover three to six months’ worth of expenses saved somewhere like a high-yield savings account.
You want this money to be easily accessible because it’s there to cover unexpected large expenses or a reduction in pay.
“Surveys show, no matter how the question is asked, that roughly half of Americans cannot handle a simple financial hiccup in their lives — some part of our car breaks, or something in your home needs repairing or replacing or whatever it is that’s a surprise — you don’t have anything to draw on,” Clark says. “That’s why having savings in an ‘oops fund’ or emergency fund is so important.”
If you’re not prepared for the unexpected, you might find yourself in a position where you’re forced to borrow money. You’ll then have to pay back that money — plus interest — which is going to slow down your overall savings plan.
In addition to your emergency fund, other savings goals you might set for yourself include:
Having a concrete goal or goals will help keep you on track with your savings. In fact, the closer you get to reaching your goal the more you may find yourself saving in order to make your dream a reality.
No matter how big or how small your goal, our savings goal calculator can help you see how long and how much it will take.
Once you’ve taken a close look at your earnings and expenses as well as set savings goals for yourself, it’s time to put all of your hard work into action.
If you can, remind yourself to check in with your budget at the end of each day. Are you spending too much in any one category? It’s important to keep track of your purchases in order to take control of where your money is going and meet your financial goals.
There are several apps available that can make this process a bit easier with features like automatically deducting money from certain categories in your budget based on real-time transactions.
If you’re interested in trying a budgeting app, here are a few of our favorites:
App | Best For | Price | App Ratings |
---|---|---|---|
Empower | Investments | Free | App Store 4.7 Google Play 4.2 |
You Need a Budget (YNAB) | Strict Budgeting | $14.99/month or $99/year 34-day free trial | App Store 4.8 Google Play 4.6 |
PocketGuard | Avoiding Overspending | Free | App Store 4.7 Google Play 3.8 |
Quicken | Premium features | Starter: $41.88/year Simplifi: $47.88/year Deluxe: $59.88/year Premier: $83.88/year Home & Business: $119.88/year | App Store 4.0 Google Play 2.9 |
Honeydue | Couples | Free | App Store 4.5 Google Play 3.4 |
Whether you use a budgeting app, a spreadsheet, an envelope budgeting method or simple pen and paper, make sure you keep track of your spending. This is the only way to stick to your budget and meet your savings goals!
Earlier in this article, we talked about paying off debt early as one way to reduce expenses. Reducing your interest (and eventually eliminating monthly payments altogether) is a great way to spend less each month. However, it can also help you save more.
As you begin tackling high-interest debt, you’ll start finding more and more money available in your monthly budget. Instead of allocating it to something like “entertainment,” keep each of your budgeting categories at the amount you’re already used to. Then, take the extra money you’re no longer spending on high-interest debt and put it into your savings account instead.
If you have more than one debt that you’re currently paying down, consider using the money from the first paid-off debt to help on your next one. Here’s Clark’s take on two of the most popular methods for paying off debt this way:
As you start to save more money, it’s important to make sure it’s stored in the best place. For example, you may be able to get better perks and interest rates than you’re used to by switching banks.
If your bank charges any monthly fees, you can easily eliminate them by moving to a new bank. Here are Team Clark’s picks for the best banks that offer free checking and high-interest savings accounts.
Picking the right savings account is also essential to make sure you can save the most and earn the most while your money is tucked away for a rainy day. Look for an account that’s fee-free with options to help you earn the most on your money.
Take the time to read up on different banks before making your final choice. If you do decide to make the switch, follow these four simple steps.
If you use direct deposit, many employers are willing to set up a percentage or dollar amount from each of your paychecks to go directly into a savings account of your choice. As long as you keep a certain minimum balance or allocate a minimum amount for each direct deposit, most bank savings accounts should be fee-free.
Saving money before it hits your checking account is a brilliant way to save: pain-free and worry-free. Make technology work for you and watch your savings grow effortlessly! Likewise, if you earn any additional income, it’s always smart to automatically save this as well. You weren’t expecting it anyway!
To keep your savings organized, consider naming your accounts. This helps you to understand where your money is going and why it’s going there. One member of Team Clark keeps one savings account for travel and another for emergency funds.
Set up a meeting with the human resources contact at your job and take the time to look at all of the benefits your company offers. One member of Team Clark takes advantage of this tip by increasing contributions to her Roth 401(k).
“This is one of my favorite ways to save more money because I don’t even notice the extra money out of my bank account,” says Sally McDonald, Managing Editor at Clark.com. “It’s going to a safe place in my Roth 401(k), and I’m not tempted to take it out.”
A brief conversation could help you optimize your retirement funds or take advantage of employee benefits you weren’t aware of. For example, if your employer offers a 401(k) match, make sure you’re contributing enough to meet the match!
Our final tip is very simple: to save more, make more!
Fortunately, you don’t have to pick up a part-time job or even leave your job for a higher-paying opportunity. With so many online networks, freelance jobs, selling platforms and side hustles available now, there are tons of legitimate ways to extra cash on your own schedule.
In the past, I’ve been a shopper for Shipt (review) and Instacart (review) as well as driven for DoorDash (review) and captioned audio files on Rev (review). All of these are relatively simple ways to make some extra cash.
For more ideas, check out these 23 easy ways to make extra money.
Saving money — whether it’s by reducing daily spending or by building up your savings account — takes some planning and good decision-making on your part. But, it’s probably the most important thing you can do to give yourself peace of mind and a bright future.
While it’s easy to eliminate some expenses immediately, many of the tips listed in the first part of this article will save you just a few dollars at a time. So keep in mind that it may take some time before you start seeing major savings. Be patient and keep your financial success in mind.
Instead of trying to tackle all of these tips at once, start by making sure you have a solid financial foundation. Check out these resources for more information on effective budgeting:
Once you’re ready to start reducing monthly expenses, try following just one expense-cutting tip at a time. If you can start with a resolution to compare prices before making any major purchase, you’ll already be saving big.
As you begin to save each dollar, make sure it’s going to the right account. Build an emergency fund and pay off high-interest debts first. You can also talk to your employer about ways to automate your savings and maximize the benefits your company offers to help build your investment accounts.
Then, once you’ve started saving money like a pro, consider exploring ways to bring in additional income for even more savings.
What are your favorite tips for reducing monthly expenses or saving big over time? Let us know in our Clark.com Community!
This post was last modified on April 17, 2024 2:01 pm
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