Creative savings ideas and tips to reach your personal finance goals

10 best money-saving tips

We all have different relationships with money and the stories that go with it. Maybe the story is one that’s rooted in a lack mentality (i.e. “I don’t have enough…”, “There isn’t enough to go around…”, etc.). We’re not often taught how to save money, and the topic might even bring up feelings of fear, shame, or unworthiness. Notice what comes up for you when you have conversations about money. In the meantime, we’re here to help with 10 tried-and-true tips and more.

1. Change your relationship with money. 

There is a popular quote about money: “If you can’t manage $1,000, you can’t manage $10,000.” So treat any income you receive as valuable, and budget accordingly. Building a healthier relationship with money can be rooted in trust and mutual respect. For Marie Forleo, this looks like “weird money rituals”, such as treating cash with care (from organizing money in a nice wallet to even picking pennies up off the ground!).  

2. Create a monthly budget (and stick to it). 

Before we can actually save money, we have to take an honest inventory of how much we’re spending and bringing in. Shining a light on spending habits can be uncomfortable. But the good news is that once we do, we can know how to move forward. Plan ahead for all purchases, down to your grocery lists, to see where you can cut costs.

3. Save for a rainy—and sunny!—day. 

Anticipation is healthy and a great motivator to help resource our savings. Most banks will let you easily open up a second (or third or fourth) savings account, allowing you to designate each one to something specific. For instance an emergency fund, a vacation fund, a down payment fund, one for a long-term project or goal, etc.

If you decide to take advantage of this, you can decide how much to put aside for each, rather than always depositing into or withdrawing from one savings account. This approach might not work for everyone, as it might feel too hard to move forward with different savings goals, but some may find it helpful to know exactly what they’re saving for and prioritize accordingly.

4. Go plastic-free…

Avoid using credit cards altogether (if only to avoid paying sneaky interest rates). And try only having the cash you need on hand. To organize your cash spending and avoid pulling from your savings, you can try Dave Ramsey’s envelope method. Divide your living costs, both needs and wants (mentioned in the 50-30-20 method, below), into categories, such as groceries, gas, etc., and assign each an envelope with an allotted amount of cash. This approach can help keep you accountable, disciplined, and on track, while making it hard to overspend.

5.…Or paper-free.

On the other hand, there is an abundance of credit and even debit cards that offer cash-back rewards for swiping, rather than using cash. It might not seem like much, but these amounts can add up! Add them to your unexpected income lists (see below), or better yet transfer them straight into a high-yield savings account. While there are also rewards specific to various retailers, grocery stores, travel purchases, etc., it’s generally a good idea to limit the number of credit cards you use. And pay them off in full or as soon as possible to avoid paying high-interest rates and fees.

6. Avoid impulse purchases.

Impulsive spending is often part of an emotional response. Rather than judging the impulse, notice it when it arises, get curious about why it’s arising, and see if you can yourself some space before making your purchase. Try the 30-day rule below. 

7. Keep it simple. 

If you want to start saving for the long run, avoid trying too many approaches all at once, which can lead to overwhelm. Instead, choose one simple habit to adopt. Like anything, if you try to do too much and aren’t clear on your goals or intentions, it will be easy to lose sight of what you’re doing and why.  Choose one; don’t get overwhelmed by trying to do too many. While you’re at it, simplify your expenses by simplifying your routine to see where you can save more. Some examples:

• Skip eating out or delivery services (with taxes, tips, and unexpected fees), and spend some time meal prepping. 
• Recycle, reduce, and reuse whenever and however possible. 
• Find free pleasures and opportunities. 
• Barter with fellow community members by exchanging goods or services, rather than relying on monetary exchange. 
• Focus on the things you already have to be grateful for, rather than what you don’t have.

8. Be consistent.

Neuroscience tells us that what we practice grows stronger. For true change to occur, we have to do something, even small habits, repeatedly. In addition to keeping your savings approaches simple, as outlined above, try this: 

9. Set it and forget it. 

Automate your savings: set up automatic deposits or transfers into your savings account(s), so that you don’t have to remember to do it each month (and therefore avoid making an excuse or unexpected purchase!). 

10. Practice progress over perfection. 

Keyword: practice. Give yourself (and others) grace when unexpected expenses arise, or you don’t meet your financial goals. Know that we are living in a capitalist economy. While individual shifts can have a great impact on our personal finances, there are many systemic things, such as inflation, cost of living, etc., that are often out of our hands. What we can control, however, is cultivating a more abundance mindset, as well as orienting ourselves toward community-centered, rather than individualistic, exchanges, opportunities, and solutions. 

 

Creative ways to save money

Make saving money a game. 

In her infamous approach to tidying, author and professional organizer Marie Kondo warns against trying to tidy someone else’s (such as a spouse, family members, or housemate) belongings before thoroughly tidying your own mess(es). The same goes for others’ budgets. When we worry about their spending before or in addition to our own, we often project our own money stories or financial fears onto them. This can be really disempowering, not to mention cause unnecessary tension at home. If you want to get family involved, see if you can motivate each other with a money challenge, game, or a shared savings account toward something everyone will enjoy. 

Try the $5 trick. 

One popular challenge your family might enjoy is to save any 5 dollar bill you receive. Put it in a shared jar for your next family adventure. Throw in loose changes while you’re at it! 

Double down on your little luxuries.

Speaking of $5… In his somewhat controversial book The Latte Factor: Why You Don’t Have to be Rich to Live Rich, David Bach shares some financial secrets passed down to him by his family. But before you assume you have to ditch your morning treats, know that this book isn’t about condemning your daily lattes. And it’s more about pointing out how, for the same cost of a latte, you can be racking up your savings. Have your beloved latte, and drink in the savings, too!

Clever ways to save money

50-30-20 method

All Your Worth: The Ultimate Lifetime Money Plan author and Massachusetts senator Elizabeth Warren offers a percentage-based approach to budgeting: the 50-30-20 rule. According to this formula, 50 percent of your income should go toward your necessities, such as rent or mortgage, meals, health care, etc. Another 30 percent toward your wants, such as entertainment or luxuries; and 20 percent into savings or paying down debt (the minimum payments, however, would fall under the first category). While this solution promotes financial stability, it is only feasible if half of your income truly covers your essential living costs.

30-day rule

In our fast-paced world, urgency is all around us. We can “cheat the system” in a sense by taking some time and space before making big (and even small) purchases. The 30-day rule removes the emotion out of impulse buying by giving you 30 days to consider whether the big buy you have in mind is actually necessary. (As we know, a sense of urgency can be created by eliciting FOMO, fear of missing out, in potential customers—and is an effective marketing strategy!) Now, of course, if it’s a time-sensitive purchase, such as a discounted course or program that’s expiring, you can take as much time and space as you can to really think about and feel into the decision: an hour, a day, a week, etc. Set a reminder for when you need to make the decision by, then step away (shut down your devices!), and get clear on whether or not it’s something you truly need or want before committing to the transaction.

Fun ways to save money

Track your unexpected income.

As we’ve explored before, a creative way to cultivate more of an abundance mindset—and save money in the process—is to keep track of your unexpected income, for instance a friend buying you coffee. Make a list, and next to each item, write a dollar amount that you would have spent on it:

• Monday – friend treated me to a latte: $6

• Tuesday – neighbor surprised me with dinner: $20

• Wednesday – partner filled up my tank of gas: $50

• Wednesday – got a free trial for new yoga studio: $35

• Thursday – credit on cable bill: $25

• Friday – coworker brought in donuts: $4
• TOTAL: $140

At the end of the week, add up the cost of all your unexpected income, and put a mere 10 percent of the total amount into savings (in the list above, that would be $14). It might not seem like much in these moments, but the more you pay attention to these small acts of generosity, the more they start to add up. If you average an extra $15 in savings each week, that’s an extra $60 a month. Additionally, if you’re putting that fraction of unexpected income into a high-yield savings account, that $60 is earning even more in interest over time which could potentially add up to a lot. 

Show your gratitude—without money.

Value is often conflated with how much money you spend on someone. There is usually a lot of pressure to give gifts over the holidays, as well as for birthdays, date nights, special occasions, etc. 

Fortunately, there are many other, often under-utilized, ways to show love and affection. Consider love languages; in addition to gifts, the other main four are quality time, touch, words of affirmation, and acts of service. With that in mind, in lieu of gifts, you might: 

• Words of affirmation: Write someone a heartfelt letter. 
• Touch: Offer someone a massage. 
• Quality time: Plan a shared experience, such as time in nature. 
• Words of affirmation / quality time: Making them some coffee or tea and being really present (no devices!) for a conversation. Even taking the time to ask someone what makes them feel the most loved and appreciated—from these five love languages or maybe they’ll share something completely different—and listening is huge. 
• Acts of service: Run an errand for them, do the dishes, or fix something around the house. 

Additionally, you can tune in with your loved ones to see which they would appreciate the most. Maybe they have something outside these love languages you’ve never considered. Taking the time to attune and can connect will make your intention to show love and care priceless—and potentially go further than a physical gift. 

FAQs

What is the 50-30-20 saving method?

All Your Worth: The Ultimate Lifetime Money Plan author and Massachusetts senator Elizabeth Warren offers a percentage-based approach to budgeting: the 50-30-20 rule. According to this formula, 50 percent of your income should go toward your necessities, such as rent or mortgage, meals, health care, etc.; 30 percent toward your wants, such as entertainment or luxuries; and 20 percent into savings or paying down debt (the minimum payments, however, would fall under the first category). And while this solution promotes financial stability, it is only feasible if half of your income truly covers your living needs.  

What’s the 30-day rule with money?

In our fast-paced world, urgency is all around us. We can “cheat the system” in a sense by taking some time and space before making big (and even small) purchases. The 30-day rule removes the emotion of impulse buying by giving you 30 days to consider whether the big buy you have in mind is actually necessary. As we know, a sense of urgency can be created by eliciting FOMO, fear of missing out, in potential customers—and is an effective marketing strategy! Now, of course, if it’s a time-sensitive purchase, such as a discounted course or program that’s expiring, you can take as much time and space as you can to really think about and feel into the decision: an hour, a day, a week, etc. Set a reminder for when you need to make the decision, then step away or shut down your devices. And get clear on whether or not it’s something you truly need or want before committing to the transaction.