10 Best Ways to Save Money

Whether you drink a lot of alcohol, smoke or buy lottery tickets, eliminating these expensive habits can save you a significant amount.

Similarly, you can show loved ones that you care without spending money by baking cookies or cooking dinner.

Another quick way to start saving is by reducing your rent.

Consider moving with a roommate or finding a cheaper apartment.

1. Automate Your Savings

Whether you’re saving for a big splurge like a vacation or your dream home, automation is the best way to make your savings work for you.

Whether through a bank or an app, setting up automated transfers helps keep your money out of sight and out of mind. Start by tracking your spending.

You can use pencil and paper, a spreadsheet or a budgeting app to track your expenses.

Once you know how much you spend, set short-term goals to save for your big purchase.

Reaching these small goals can help build momentum and reinforce the habit of saving.

2. Reduce Your Rent

One of the biggest expenses most people have is their housing costs.

Finding ways to reduce your rent can save you a lot of money each month and help you reach your savings goals faster.

A good rule of thumb is to spend no more than 30% of your income on housing.

However, if that’s not feasible for you, there are other things you can do to lower your rent.

Some options include downsizing, getting a roommate or negotiating with your landlord.

All of these methods will save you some money!

3. Reduce Your Transportation Costs

With gas prices currently high, reducing your transportation costs can save you money. Try carpooling, using public transportation or taking your bike to work.

You can even get rewards by purchasing a card that offers discounts on transit tickets.

If you ship freight, try utilizing smaller carriers on load boards. These can offer much cheaper shipping rates than institutional carriers.

Additionally, a route optimizer can help you reduce fuel costs by identifying the most efficient routes.

Lastly, consider buying used items to cut your transportation costs.

4. Eat Out Less

It’s no secret that eating out can be expensive. But cutting back can save you big without reducing your quality of life.

Personal finance columnist Michelle Singletary says that committing to eating out one fewer time per month can cut your restaurant bill by over $1,000 a year.

She suggests packing your lunch, taking advantage of happy hour rates and planning your grocery trips around sales.

Even a little change like making your own $2 coffee at home each morning can add up to savings.

You can also skip going to the movie theater and rent a film instead.

→ SEE ALSO: 16 Ways to Increase Your Earning Potential 

5. Get Rid of Unnecessary Subscriptions

Subscription services like Netflix, Spotify and gym memberships can be a fun way to keep entertained or get household necessities but often take a toll on your budget.

Getting rid of unnecessary subscriptions is an easy way to save money.

It may be helpful to sync your charges so that they come out at the same time of month or use an app like Trim that automatically cancels unused subscriptions.

Also, make sure to track free trials and remember to cancel when they end.

If you don’t cancel before the trial expires, you could be charged a monthly fee for months you never even used.

6. Prepare Your Food at Home

Preparing your own meals is cheaper than eating out. It’s also healthier, since restaurants tend to use a lot of processed ingredients.

If you want to save money on groceries, it’s important to track sales cycles.

Woroch recommends shopping on Wednesdays when supermarkets release new ads, so you can get the first pick of the best deals.

Shop for managers’ markdowns on meat and stock up on other staples like canned goods, cereal, baking supplies and spices.

You can often find generic brands that are just as good as the name brand.

7. Get a Job

Getting your first paycheck is exciting, but you’ll need to be prepared for the unexpected expenses that are sure to arise.

Avoid falling into the instant-gratification trap by separating your savings from your spending money and funneling it into a dedicated account at regular intervals.

Identify your income by listing all sources of revenue (including unemployment, intermittent gigs and any automatic transfers going to retirement or debt payments).

Then, list your expenses in one column and find ways to cut costs until the total comes below your income.

8. Ask for Discounts

Whether you’re a student, in the military or in law enforcement, discounts are often available. Just ask! It’s best to do this during a non-busy time.

Asking during a rush can make you feel insensitive and may cause the salesperson to give you a no.

You can save even more money by timing your big purchases according to seasonal sales.

This can help you snag big savings on things like appliances, furniture and cars!

Using cash-back apps can also help you get the most bang for your buck.

9. Save in the Background

Putting bills on autopay ensures that they’re paid on time and prevents late fees, which can hurt your credit.

Similarly, unplugging devices that aren’t in use can save money on your electricity bill. Buying generic brands is one of the easiest ways to save.

Many name-brand items, like medicine, contain the same ingredients as their generic counterparts.

Using reusable water bottles, paper towels and mugs instead of disposable ones is another way to cut costs.

Having a family yard sale can also be an easy way to raise funds for vacation or night out expenses.

10. Buy Generic Brands

Money experts say that you could shave off a lot of your grocery spending by shopping generic.

There are several items that are worth the switch, including food storage products like plastic bags and foil, baking ingredients, salt, sugar and spices (all of which can be found in store brands), and frozen fruits and vegetables.

Generic or store-brand products are less expensive, and you may not even notice a difference in taste. Give it a try! Your wallet will thank you.

→ SEE ALSO: The Top 10 Budget Templates and Tools to Save Money

You may also want to save on headache meds and allergy meds by buying generic versions as well.