How to Save Money Now (Before You Really Need It)

When it comes to saving money, small changes can add up quickly. Here are some of the best ways to save money right away.

Explore 28 ways to save money

Budget money to become a saver

1. Create a budget

One smart way to manage your money — and hopefully hold on to more of it — is to follow a budget, which means comparing your income to your expenses and setting priorities for your spending. Use a free budget template or even a piece of scrap paper to start.

At NerdWallet, we recommend the 50/30/20 budget for money management. This approach means devoting 50% of your after-tax income to necessities, 30% to wants and 20% to savings and any debt payments. If one of your allocations exceeds these percentages, you can make some adjustments elsewhere. Scroll down to use the 50/30/20 budget calculator.

2. Set savings goals

Set a specific but realistic goal. It may be “save $5,000 in an individual retirement account this year” or “pay off my credit card debt faster.”

Use a savings goal calculator to see how much you’d have to save each month or year to reach your goal.

3. Track spending

Keep track of your monthly cash flow — your income minus your expenditures. This step will also make it easier to mark progress toward your savings goal. Try a budget app that tracks your spending. (The free NerdWallet app does just that.) Or you can follow these six steps to help track your monthly expenses.

4. Count your coins and bills

Another option is setting aside your spare change each night. After you have a sizable amount, you can deposit it into your savings and watch your account grow. In fact, when you want to watch your spending, it’s a good idea to use cash instead of credit cards because it can be harder to part with physical money. While this strategy won’t build savings overnight, it's a solid approach for slow-and-steady growth.

5. Keep savings in a high-yield savings account

As you work toward your financial goals, make sure to put your accumulating funds in a high-yield savings account to earn interest on top.

6. Automate transfers

By setting up automatic transfers from your checking account to your savings account each month (or via a company direct deposit), the money will accumulate over time with little effort. This technique can be especially useful when your savings accounts are dedicated to specific goals, such as establishing an emergency fund, going on a vacation or building a down payment.

Tackle debt to save on interest

7. Pay off high-interest debt

Debt payments can be a big burden on your overall budget. If you can pay off debt more quickly — by making extra payments or paying more toward the principal balance when you can — you’ll save on total interest paid and free yourself from that burden sooner. If you can't make extra payments right now, consider exploring ways to make money on the side you put toward your debt.

8. Lower your student loan payments

If you have student loans, enrolling in income-driven repayment could lower your monthly payments to a manageable level since the amount you pay is tied to your earnings. Other options include refinancing student loans, enrolling in autopay to trigger a discount and making extra payments so you can unload the debt faster, which cuts the overall interest you’ll pay.

9. Refinance your mortgage

If you’re able to snag a lower interest rate, refinancing your mortgage can save you several hundred dollars each month. But it’s important to consider other factors if you’re trying to decide when to refinance a mortgage. Use our mortgage refinance calculator to find out how much you could save. While refinancing comes with some initial costs upfront, they can be recouped over time, once you start paying less each month.

Cut the cost of monthly bills

10. Prep for grocery shopping

A little work before you go to the grocery store can go a long way toward helping you save money on groceries. Check your pantry and make a shopping list to avoid impulse buying something you don't need. Learn how to get coupons and join loyalty programs to maximize your savings as you shop.

Check out some of the best credit cards for groceries. Some cards offer as much as 5% or 6% cash back, but you’ll want to be sure to pay off your bill each month to avoid paying interest and fees.

11. Bundle cable and internet

You could lower your cable bill by as much as $40 per month by downsizing your cable package. And you could save more than $1,000 over two years by bundling your cable and internet service, depending on your carrier. Another option to consider is cutting cable or at least cutting some of your additional streaming services or premium subscriptions.

12. Switch to a cheap cell phone plan

It might be time to change your cell phone plan to save some serious money. As you set out to find the best cell phone plan for your situation, you’ll want to consider network quality and whether a prepaid or postpaid plan is best for you. When you’re ready to save, there’s likely a cheap cell phone plan out there that can meet your needs.

13. Reduce your electric bill

Big and small changes in your energy usage can help you save hundreds annually on your electric bill. Consider plugging any insulation leaks in your home, using smart power strips, swapping in more energy-efficient appliances and switching to a smart thermostat. Even incremental drops in your monthly electricity usage can add up to big savings in the long term.

14. Cancel unnecessary subscriptions

You might be paying for subscriptions you no longer use or need. Reviewing your credit card or bank statement carefully can help you flag any recurring expenses you can eliminate. And avoid signing up for free trials that require payment information, or at least make a note or set a calendar reminder to cancel before the free period ends.

Save money when you shop

15. Map out major purchases

You can save by timing your purchases of appliances, furniture, cars, electronics and more according to annual sale periods.

It’s also worth confirming a deal is actually a deal by tracking prices over time. You can use a shopping browser extension to automate the deal-tracking and couponing process. For example, the Camelizer extension from Camelcamelcamel makes it easy to view prices over time on Amazon, and the Honey extension will automatically find and apply coupons while you shop online.

16. Delay purchases with the 30-day rule

One way to avoid overspending is to give yourself a cooling-off period between the time an item catches your eye and when you actually make the purchase. The 30-day rule gives you more time to decide whether you really want or need the item. If you’re shopping online, consider putting the item in your shopping cart and then walking away until you’ve had more time to think it over. (In some cases, you might even get a coupon code when the retailer notices you abandoned the cart.)

If 30 days seems like too long to wait, you can try shorter periods like a 24- or 48-hour delay.

17. Restrict online shopping

You can make it more difficult to shop online to stop spending money on things you may not need. Instead of saving your billing information, opt to input your shipping address and credit card number each time you order. You’ll probably make fewer impulse purchases because of the extra work involved. You may even consider deleting any shopping apps from your phone for the time being.

18. Stock up on household supplies when they’re cheap

It can feel like you’re constantly buying items like dishwashing soap, paper towels or toiletries. Track your inventory of household supplies and consider buying these items in bulk when they’re on sale. It may work out cheaper than rushing to buy them last-minute when they’re selling at full price. Using “Subscribe and Save” on Amazon can be a good way to get regular shipments of household supplies at a discount.

19. Shop consignment and thrift stores

Shopping at thrift or consignment stores is a way to save money. Consignment stores sell items for you, giving you a cut of the money, whereas at thrift stores you shop used items. Platforms like ThredUp, an online consignment and thrift store, do both. You can buy used clothes as well as donate old clothes you don’t want and earn money or shopping credits.

Whether buying at a consignment or thrift store, compare prices to ensure you’re getting a reasonable discount.

20. Get creative with gifts

You can save money with affordable gift ideas, like herb gardens and books, or go the do-it-yourself route. Baking cookies, creating art or preparing someone dinner can demonstrate that you care just as much as making an expensive purchase, and perhaps even more so. You can also shower someone with the gift of your time by offering to take them to a local (free) museum or other event.

To plan for costs, create a calendar for all the important gift-giving events for the year. Then create a savings bucket or "sinking fund" specifically for gifts, and buy the items during major sale periods like Prime Day or Black Friday.

21. Join initiatives to get free items

Initiatives like The Freecycle Network and Buy Nothing groups make it possible to get items you need for free. You can exchange items locally for free with the goal of reducing waste and helping the environment. If you're looking for free clothing, check out community swap events.

22. Cash in on your birthday

Once a year, set aside extra money by getting freebies and discounts on your birthday. You could get free food or rewards to redeem on clothing purchases. We compiled a list of dozens of companies that offer birthday freebies.

Spend less money on transportation

23. Lower your car costs

Refinancing your auto loan and taking advantage of lower interest rates could save you considerably over the life of your loan. Shopping around for car insurance regularly can also help you cut costs compared with simply letting your current policy auto-renew. You can cut ongoing car maintenance costs by driving less, removing heavy items from your trunk and avoiding unnecessary rapid acceleration.

24. Reduce your gas usage

You can't control gas prices, but you can do several things to save on fuel, such as adhering to your car’s maintenance schedule and stacking errands to avoid unnecessary trips. Try using a gas app to pinch pennies when you do fill up.

25. Use car sharing services

If you need to rent a car, consider a rental car alternative, like car-sharing services Turo or Getaround. Do your homework to see if car-sharing services work out cheaper than large, well-known rental companies. If you don’t drive much because you work remotely or just choose not to have a car, you may also find using car-sharing services works out cheaper than owning a car or using taxis.

Find cheaper ways to be entertained

26. Minimize restaurant spending

One of the easiest expenses to cut when you want to save more is restaurant meals, since eating out tends to be pricier than cooking at home. If you do still want to eat at restaurants, try to reduce the frequency and take advantage of credit cards for restaurant rewards.

You can also opt for appetizers or split an entree with your dining companion to eat out on a budget. Skipping drinks and dessert or indulging in both at home post-dinner can help stretch your budget as well.

27. Get discounts on entertainment

You can take advantage of free days at museums and national parks to save on entertainment costs. Your local community might offer free concerts and other in-person or virtual events; check your local calendar before splurging on pricey tickets to private events. You can also ask about discounts for older adults, students, military members or veterans, first responders and more.

28. Enjoy community events

Getting out and having new experiences can be expensive. Find free (or cheap) things to do in your community by checking listings at libraries, churches and websites like Eventbrite. Or enter your city and "events" in a search engine to find some things to do.

Got kids tugging on your shirt tail? Community events can be an inexpensive way to keep little ones engaged and spend quality time together. For outdoor events, pack snacks and water to minimize the amount you spend on food.