By Karen Bennett, Bankrate.com
Saving money in the current economic environment likely feels overwhelming. And the data supports how much of a struggle it is — only 46% of U.S. adults have enough emergency savings to cover three months of expenses, according to Bankrate’s Emergency Savings Report. With 24% having no emergency savings at all, finding ways to cut expenses and build savings has become essential for financial security.
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The challenge isn’t just about earning more — it’s also about saving smarter. Even small changes to your spending habits can add up to significant savings over time. Whether you’re building your first emergency fund or trying to reach a specific savings goal, these proven strategies can help you keep more money in your pocket.
1. Review your spending habits
Before implementing any money-saving strategies, you need a clear picture of where your money currently goes. Most banks and credit card companies provide categorized spending reports through their online platforms or mobile apps, showing you exactly how much you’re spending on groceries, entertainment, utilities and other categories.
Track everything for at least one month: Review bank statements, credit card bills and cash receipts to understand your spending patterns. Many people are surprised to discover they’re spending far more than expected on subscription services, dining out or impulse purchases.
Identify spending leaks: Look for recurring charges you forgot about, subscriptions you no longer use or categories where you’re consistently overspending. Common culprits include streaming services, gym memberships and automatic renewals for apps or software you rarely use.
2. Automate your savings
Setting up automatic transfers from your checking to your savings account each payday removes the temptation to spend money before saving it. This “pay yourself first” approach ensures consistent saving without requiring ongoing willpower or decision making.
First, calculate your monthly expenses and determine how much you can realistically save each month. Consider automatically transferring a percentage of each paycheck — such as 10% or 20% — rather than a fixed dollar amount. This approach scales your savings as your income fluctuates and helps build the habit of living below your means.
Many budgeting apps can track spending, issue overspending alerts and automate savings transfers. Apps like YNAB (You Need A Budget) and Rocket Money can help coordinate your spending and saving goals in one platform.
3. Use cash-back apps and credit card rewards
Cash-back apps can reduce your overall spending on purchases you’re already making. These tools work best when used strategically for planned purchases rather than encouraging additional spending.
If you pay off credit card balances in full each month, cash back credit cards can provide 1% to 6% back on purchases. Stack cash-back apps with rewards credit cards for double savings.
4. Reconsider your mobile provider
Cellphone plans often include features and data allowances far beyond most users’ actual needs. With increased competition among mobile providers, switching carriers can provide significant monthly savings without sacrificing service.
Companies like Mint Mobile, Visible and Ting Mobile are known for offering plans that are cheaper than major carriers while using the same cellular networks. It pays to research coverage in your area and compare plan features to find the best value. Plus, check your phone’s data usage statistics to determine how much data you actually use monthly. If you primarily use Wi-Fi at home and work, you may be paying for more data than necessary.
If multiple family members need service, family plans from both major and smaller carriers often provide better per-line pricing than individual plans. But before switching, call your current carrier to discuss potentially lowering your monthly bill. Many providers offer retention discounts to customers considering switching to competitors.
5. Turn off store promotion notifications
Your smartphone can be a powerful money-saving tool, but it can also trigger impulse purchases through promotional notifications, deal alerts and targeted advertising. Taking control of these digital spending triggers can significantly reduce unplanned purchases. This includes:
Unsubscribe from promotional emails.
Disable app notifications.
Remove shopping apps from your phone.
6. Shrink your utility bills
Home utility costs continue rising, but several changes can reduce your monthly bills without significantly impacting your comfort or convenience:
LED lighting savings: The U.S. Department of Energy estimates that switching to LED bulbs can save the average household around $225 annually.
Seal air leaks: You can save up to 20% on heating and cooling costs by sealing air leaks and adding insulation. Many utility companies offer free energy audits to identify the most impactful improvements for your home.
Smart thermostat benefits: Programmable and smart thermostats can reduce heating and cooling costs by automatically adjusting temperatures when you’re away from home.
Water conservation: Installing low-flow showerheads, fixing leaks promptly, and watering lawns during cooler morning hours can significantly reduce water bills.
Energy assistance programs: The federal Low Income Home Energy Assistance Program (LIHEAP) helps eligible households pay energy bills, weatherize homes and make energy-related repairs. Check your local utility companies for additional rebate programs.
7. Evaluate your entertainment expenses
Entertainment subscriptions can quickly add up to $100 or more monthly. Regularly reviewing and optimizing these services can free up significant money for savings.
Instead of paying for multiple streaming services simultaneously, consider rotating subscriptions monthly or seasonally. Services like Sling TV, Hulu and Fubo often cost less than traditional cable packages while offering access to popular content. If you’re already an Amazon Prime member, take advantage of the included Prime Video streaming service and Prime Music to potentially eliminate other subscription costs.
Public libraries offer free access to more than just physical books. You may be able to use your local library to check out movies, music, audiobooks and digital content through apps like Libby.
8. Take advantage of free local attractions
A little research can help you find fun, affordable attractions and activities in your local area. For instance, some museums and art galleries offer free admission on certain days of the week or month. Libraries may offer passes to parks, zoos or museums on a first-come, first-served basis. Or you can just head outdoors for a hike, bike ride or picnic.
Your bank may even offer free access to attractions. For example, Bank of America’s Museums on Us program gives the bank’s debit and credit card holders complimentary access to around 240 cultural institutions across the country.
9. Be a strategic grocery shopper
While you’ll need to keep buying food despite higher prices, you can learn how to save money on groceries. One method is to avoid throwing away unused food. For a U.S. household of four, the annual cost of food waste is around $2,913, or $56 per week, according to the Environmental Protection Agency (EPA).
AAs you make your grocery list, think about what you threw away last time and how to avoid letting that happen again. Planning out your upcoming meals can help you avoid buying things you don’t need — and avoid waste, in turn. Also, take a tour of your pantry first and build your meals around what you already bought.
10. Break up with brand names
Speaking of groceries, consider whether you really need to pay for expensive brand-name foods. A comparison of ingredients and labels on things like noodles, cereal and spices may show generic alternatives to be just as nutritious and high-quality as their top-shelf counterparts.
The same concept can apply to non-food items such as paper products, hand soap and laundry detergent. Try to find more affordable alternatives for any such brand-name household items you buy. You can always switch back to your original choice if you’re not happy with the lower-priced alternative.
11. Explore other banking options
Banking fees can drain hundreds of dollars annually from your accounts. Shopping for better banking options can eliminate these unnecessary costs:
Monthly maintenance fee waivers: Online banks like Ally Bank and Marcus by Goldman Sachs typically don’t charge monthly maintenance fees on checking or savings accounts. They also frequently offer higher interest rates than traditional banks.
High-yield savings benefits: Online high-yield savings accounts currently offer rates around 4.00% APY, compared to the national average of 0.61%. Moving $10,000 from a traditional savings account to a high-yield account could earn an additional $300 or more annually.
ATM fee reimbursements: Many online banks and credit unions reimburse ATM fees charged by other banks, potentially saving $5 to $15 monthly for frequent ATM users.
CD and money market options: If you have funds you won’t need for several months or years, certificates of deposit (CDs) and money market accounts from online institutions often provide significantly higher returns than traditional savings accounts.
12. Compare car insurance rates
If you have a track record of safe driving, it can pay to shop around for a good insurance provider that will reward you for your responsible behavior. Compare other car insurance quotes with what you currently pay to see how much you can lower your premiums for the same amount of coverage.
Those who don’t spend much time behind the wheel may be able to cut costs by going with usage-based insurance, which can tailor your coverage to fit how much you actually use your vehicle.
13. Use coupons and promotional codes
Couponing might sound old-school, but finding deals doesn’t always require clipping portions of the Sunday newspaper. When you’re shopping online, take a few minutes to search for a coupon code when websites offer a “promo code” box on the checkout page.
Browser extensions like Rakuten and Coupert automatically search for online coupons while you shop. Capital One Shopping is another tool that can find online deals automatically, and it’s available to everyone — not just Capital One customers. It works by searching for coupon codes, best prices and rewards at more than 100,000 online retailers.
14. Challenge yourself to a spending freeze
Try taking control of your finances by embarking on a spending freeze — also known as a no-buy challenge — during which you cut all unnecessary spending for a set period. This could give you a sense of how much you’re spending on nonessentials like trips to the coffee shop. Add the extra money you have at the end of the month to your savings or use it to pay down debt.
Bottom line
If you’re serious about reaching your financial goals, our 14 tips on saving money offer you a good starting point. Now that you have a basic understanding of how to save money, it’s a good idea to plan where you’ll allocate your savings — and put your plan into action.
For example, if you want to bulk up your emergency fund, transfer any savings out of your checking account each week or month so you’re less likely to spend it. If you need to pay down debt, create additional payments that automatically come out of your bank account. Whatever your goals, make the process of saving as effortless as possible.
Frequently asked questions
What is the 30-day rule? The 30-day rule is a simple strategy of holding off for 30 days before making a nonessential purchase. By waiting, you’ll give yourself a chance to consider whether you want and need the item, whether you can truly afford it and if your money should be allocated toward a higher priority instead.
What are some ways to save money yearly? Look to your retirement account and tax refund for ways to increase your savings each year. Steps to do so include these ideas:
Take advantage of an employer match for your 401(k). Many employers match up to a certain amount of what you put into your 401(k) based on how much you contribute. Get the most for your money by contributing enough to receive the full employer match.
Open an individual retirement account (IRA). A traditional or Roth IRA is another place to invest in your retirement, and they each have certain tax advantages. Unlike 401(k) accounts, IRA accounts are not administered through an employer. They’re commonly offered by banks, credit unions, brokerage firms and mutual fund companies.
Save or invest your tax return. If you’re getting an annual tax refund from the IRS, consider putting it into a savings account or investing it.
How can I build an emergency fund? An emergency fund can help keep you from going into debt when unexpected costs arise. To get started with building up your emergency savings:
Create a budget and pay attention to areas where you can start saving more money.
Open a high-yield savings account, if you don’t already have one. Setting up automatic transfers to this account every payday helps ensure you’ll continue to save money.
Save unexpected income or any windfalls, such as tax returns or work bonuses.
Aim to save at least three to six months’ worth of expenses in your emergency fund.
What is the 50/30/20 budget rule? This simple budgeting strategy involves setting aside 50% of your monthly income for needs, 30% for wants and 20% for savings. Allocating your money into these three buckets can be a simple and effective way to change your spending and saving habits.
Key takeaways
Only 46% of U.S. adults have enough emergency savings to cover three months of expenses, making saving money more crucial than ever.
Automatic transfers to a high-yield savings account earning around 4% APY can help build emergency funds without extra effort.
Cash-back apps and comparison shopping can save hundreds annually on everyday purchases like groceries, gas, and insurance.
Simple changes like switching to generic brands, negotiating bills and using coupons can free up significant money for savings.
©2026 Bankrate.com. Distributed by Tribune Content Agency, LLC.
