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Small changes that can help save you money
You've paid all your bills this month—and you still have some money left over. You could use that extra money to buy that pair of boots you've been eyeing or splurge on a dinner with friends. Or you could decide to save it.
You'd be surprised how quickly saving a little each month adds up. And usually all it takes is a few small adjustments to your current financial behavior to do it. Let’s look at six small changes that can help save money:
Prioritize your savings
When you prioritize your savings—or pay yourself first—it can feel less like an afterthought and more like a non-negotiable priority. Instead of saving whatever remains after paying bills and expenses, you immediately set aside money for savings when income arrives, treating it like your most important bill.
If you wait until the end of the month to save, unexpected expenses or impulse purchases might consume what you intended to put away. By saving first, you force yourself to live on what remains, naturally encouraging more mindful spending.
Start small to build the habit—even $25 per paycheck creates momentum and demonstrates that you can live on slightly less. Your employer might allow you to split direct deposits between multiple accounts, making the process automatic. You can also set up immediate automatic transfers from checking to savings on payday.
The psychological benefit can be powerful: watching your savings grow consistently builds confidence and reinforces positive financial behavior. This simple shift in timing can accelerate your progress toward financial security.
Set clear financial goals
Setting clear financial goals provides direction and motivation for saving. Without specific objectives, saving can feel aimless. When you define exactly what it is you're saving for—a down payment on a home, a child's education, a comfortable retirement, or an emergency fund—each dollar saved has a purpose.
Clear goals transform abstract saving into tangible progress. A goal like "save $30,000 for a home down payment in three years" allows you to break it down into manageable monthly or weekly contributions. This clarity allows you to develop a concrete plan that can help shape your daily choices.
Well-defined goals increase accountability. When you know exactly what you're working toward, you're more likely to resist impulse purchases or unnecessary expenses. Every spending decision can be weighed against its impact on your goal. This mental filter helps prioritize needs over wants, reinforcing disciplined saving habits. The satisfaction of hitting incremental milestones toward a larger goal also provides powerful motivation, turning saving from a chore into a rewarding journey. Ultimately, clear financial goals can provide the "why" behind your saving efforts.
Create a monthly budget and stick to it
Setting a budget adds context to your savings efforts. It can show you what percentage of your income you are saving each month.
If you budget for a specific amount or percentage for savings each month and stick to it, you are creating an environment that promotes a savings habit. Sticking to your budget reinforces that habit.
Many budget plans break out savings as a prominent category. For example:
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Under the 50/15/5 plan, you set aside 50% of take-home pay for essential expenses, put 15% into a tax-protected retirement plan, and 5% into short-term savings. The other 25% is up to your discretion
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The 50/30/20 budget suggests allocating 50% for needs, 30% for wants and 20% for savings or making extra payments toward debt
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The 70/20/10 rule earmarks 70% for essential living expenses, 20% for savings and debt repayment, and 10% for lifestyle choices
One thing these plans have in common: they move savings from being an afterthought to a starring role in your budget.
Reduce unnecessary spending
When you set a goal for savings and budget for it, you are primed to save more. One way of doing that is to track monthly spending and stop paying for things you can do without. You can save that money instead. Here are a few more ways to reduce unnecessary spending:
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Pay less in interest charges by consolidating debt
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Do meal prep and cook at home more often
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Shop with a list
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Make your own coffee
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Find and cancel unused subscriptions
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Use cash for daily expenses
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Buy used instead of new
Automate your savings
Automating your savings goes hand in hand with prioritizing your savings. This process can help make consistent saving effortless and effective. Here’s some common ways to automate your savings:
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Direct deposit splitting. Many employers offer the option to split your paycheck into multiple accounts. When setting up or adjusting your direct deposit, you can specify a fixed dollar amount or a percentage of your pay to go directly into your savings account, while the remainder goes to your checking account
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Automatic transfers. If your employer doesn't offer direct deposit splitting, or if you receive income from various sources, you can set up recurring automatic transfers from your checking account to your savings account. You can typically do this through your bank's online banking portal or mobile app. Schedule these transfers to occur on payday, shortly after your income hits your checking account. You can set them up weekly, bi-weekly, or monthly, depending on your pay schedule
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Round up programs. Some banks and financial apps offer features that round up your debit card purchases to the nearest dollar and transfer the difference to your savings account. Similar programs transfer a small amount from checking to savings every time you use a debit card. This small change can add up over time without much conscious effort
With automation, saving no longer depends on willpower or remembering to transfer funds. It can become a consistent, background process that steadily builds your financial reserves.
Review and adjust accordingly
Life isn't static. Incomes rise and fall, new recurring expenses emerge (like car payments or childcare costs), or a specific savings goal might become more urgent.
Reviewing and adjusting your budget gives you an orderly way to assess and manage these changes. For example, if your income increases or you pay off a loan, you can strategically allocate more money to savings. Without consistent budget reviewing, the money might disappear into non-essential spending.
A regular review, whether it’s weekly or monthly, allows you to compare your actual spending against your planned spending. Once you identify an area where you are overspending, you can start to determine why. There might be a sound reason, and you’ll need to increase the allocation to that part of the budget. Or maybe your impulse buying is on the rise, and you need to deal with that.
Measuring and reviewing your financial activity through the lens of a budget can change your behavior for the better.
Open a savings account
If you're saving for a specific goal like a vacation or new car, go to your financial institution and open a savings account for that purpose.
A savings account provides several options for a person who wants to increase savings. For example, it’s necessary for automated savings.
You must keep your savings somewhere, and there are many benefits to using a savings account, including:
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Security. The Federal Deposit Insurance Corporation (FDIC) insures accounts up to $250,000 per depositor, per insured bank, per ownership category. If your financial institution fails, the money in your savings account—including any earned interest—would still be safe
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Accessibility. With modern banking, you can conveniently access the money in your savings account. Using an app or online banking portal, you can transfer money to other accounts you own and to other parties. A debit card can also give you access to cash at an ATM
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Don't make your money too accessible. By putting money in a savings account, you can easily track your progress toward reaching your goals. You separate it from the “spending” money in your checking account. This helps you to keep your hands off it until the goal has been reached
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Your money grows. While the money in your savings account is safe and accessible, it’s also growing. With a high-yield savings account you can enjoy the other benefits while your money grows at an accelerated pace
Be resourceful
During your next budget review, think about whether you're taking advantage of all the resources at your disposal. For example, think about your workplace as more than an income source. Look for opportunities to save.
When you go through the annual benefits enrollment process, look for an option to enroll in a Flexible Spending Account. A FSA allows you to earmark a certain amount from every pay period to contribute to it through a pretax payroll deduction. Then file a claim to be reimbursed for eligible expenses relating to medical care, dependent care, and other eligible expenses.
Another excellent savings opportunity is participating in your company's 401(k) retirement plan. Your employer might also contribute pre-tax money to your account, boosting your savings even more.
Like a FSA, your contributions are deducted from payroll before taxes are taken out. Both accounts not only give you an automatic way to save, but could also reduce your tax bill each year.
Organize your finances for easier saving
Organizing your finances should make it significantly easier to put money into savings because it brings clarity, control, and structure to your financial life.
When your finances are organized, you can set specific, measurable financial goals and keep track of your progress. Without organization, you are in the dark and guessing.
Once you get organized, you’ll find plenty of solid information at hand to help you make decisions. You’ll also be able to take advantage of modern banking conveniences like digital budget tools, account alerts, and apps that track spending and savings