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Your Go-To Guide for 9 Small – but Realistic – Ways to Save Money

The cost of living keeps on rising – so how are you ever supposed to save up enough for a down payment on your dream home?

The key to financial stability and a healthy savings account doesn’t always lie in big sacrifices and drastic lifestyle changes. Small, consistent actions can gradually build up a substantial nest egg that will get you closer to your homeownership goals. Patience and persistence are the keys.

Where should you start? Here are some small, practical steps you can take that will get you on the right track with your spending and your savings:

1. Figure Out Where Your Money Is Going

Before you can start saving for a down payment, you have to figure out where your cash disappears each month – and that can be a puzzle. Tracking your spending habits for four to eight weeks can help you figure it out by identifying areas where you can make micro-changes in your habits that will help you redirect your money into savings.

How to Start:

  • Use budgeting apps like Mint, YNAB (You Need A Budget), or a simple spreadsheet.
  • Categorize your expenses (groceries, utilities, dining out, entertainment and more) to see where most of your money is spent.

As soon as you have the patterns figured out, you can start looking for ways to minimize your bills (even the essentials, like insurance and utilities) and make your dollars go further.

2. Automate Small Savings Goals

By setting up automatic transfers from your checking to savings, you reduce the “available balance” in your account and (hopefully) remove the temptation to spend that money. 

How to Start:

  • Set up a direct deposit split, where a portion of your paycheck goes directly into your savings.
  • Use apps like Acorns or Chime, which automatically round up your purchases and save the difference.
  • Start small and remember that even $10 a week adds up to $520 a year, and every bit helps create a nest egg that you can use.

At the very least, if you must consciously move money from savings to checking to spend it, you’ll be more mindful of your choices – and that can also help you cut back on impulse buys.

3. Eliminate Rarely Used Subscriptions

Magazines, Amazon Prime for the Kindle, gym memberships and streaming services all add up – and there are probably a few of those things that you aren’t using regularly. 

How to Start:

  • Make a list of all your subscriptions (including apps and online data storage, product trial boxes and anything else that comes out of your account each month).
  • Be honest with yourself: If you haven’t used Disney+ in a month, cancel it. 

Studies have shown that streaming services are the biggest offenders when it comes to unused subscriptions and wasted dollars, so be brutal about it. You can always join again if there’s some “must-see” TV that you really want. Check out free-with-ads streaming like Tubi or FreeVee, instead.

4. Get Into Meal Prepping for Home and Work

Eating out or relying on takeout can take a big bite out of your budget. Meal prepping is an effective way to save money on food, allowing you to put more money back into your wallet.

How to Start:

  • Plan your meals for the week and create a shopping list based on what you need – then stick to it. Allow yourself a set dollar limit for impulse grocery buys so you don’t feel deprived – and don’t go over your budget.
  • Buy small, reusable containers so that you can easily break the meals into the portions you need for lunches or dinners.
  • Dedicate one evening a week to meal prep for lunches, since those are the meals that most people are tempted to grab on the go. 

You can make very creative meals with Tex-Mex-inspired recipes for lunches that rely on chicken or beef mixed with rice, beans and vegetables, all of which reheat easily in a microwave. 

5. Use Cashback and Rewards Programs

Taking advantage of cashback and rewards programs is a simple way to save on everyday purchases, allowing you to put the savings directly back into your wallet.

How to Start:

  • Sign up for cashback apps like Rakuten, Ibotta, or Honey and use them with your online purchases.
  • Use a rewards credit card that gives you points or cashback for your purchases (just be sure to pay off the balance each month)

Credit cards are not your enemy. Learning to use your cards the right way can actually save you money. Take advantage of specials offered by your credit card company to make planned purchases and redeem points or cash back for things you need.

6. Comparison Shop and Give Up Brand Loyalty

Brand loyalty may be costing you more than you realize – and many generic or store-brand products come with the same quality at a fraction of the cost. Some generic products are actually manufactured in the same place as their name-brand cohorts, but the packaging is cheaper.

How to Start:

  • Before you buy the brand name groceries, see if there’s a generic equivalent and give it a try. If you don’t like it as well, you can always switch back.
  • Try thrifting for second-hand items on furniture, clothing or accessories, if you’re hooked on a specific designer. That can help you beat the high prices.

This is also a good time to consider buying in bulk for items you use regularly, which can also save money in the long run. A Costco or Sam’s Club membership may be one subscription service you should keep (and use).

7. Put the Brakes on Impulse Buying

This one can be tough because there’s nothing like that hit of dopamine you can get when you find a really good deal on something fun or cool – but you have to do it if you want to make progress. Small, unnecessary purchases can add up quickly and make your money hard to manage.

How to Start:

  • Put yourself under a 24-hour rule: Force yourself to wait a day before you make an unplanned purchase. If you still want it badly enough to go back for it, then you can give yourself permission to splurge.
  • Set a monthly limit for discretionary spending and stick to it. That can allow you to avoid feeling pinched and deprived without destroying your budget totally. 

If you tend to browse online shopping sites when you’re bored or tired, find another hobby. Your defenses are down when you’re low on energy, so don’t put yourself in the path of temptation.

8. Negotiate Essential Bills and Rates

Internet, insurance and utility bills all take a big bite out of your budget – but did you know that you aren’t powerless about your rates? Most people don’t realize that they can negotiate most of these bills and ask for better rates. Companies don’t want you to bounce to their competitor, so if you’ve been a good customer, they’ll often offer you discounts.

How to Start:

  • Call your service providers and ask for any current promotions or discounts.
  • Shop around for better insurance rates annually.

Utility companies often have multiple providers that source the raw electricity, gas and other essentials. Find out if you’re paying the lowest possible rates and don’t be afraid to switch. 

9. Get Your Entertainment from the Library

Libraries offer a wealth of free resources, from books and movies to online courses and workshops. Taking advantage of what your local library offers can save you a lot of money on entertainment, allowing you to save more.

How to Start:

  • Get a library card if you don’t already have one and explore your local branch in person.
  • Explore digital resources like eBooks, audiobooks and streaming services available through your library.

Apps like Libby and Kanopy will deliver free books and audiobooks right to your phone or Kindle. While you may sometimes have to wait for a digital copy to free up, the savings can really add up.

Remember, every little bit helps, and consistency is key. Start with a few tips that resonate with you and build from there. Before you know it, you’ll be well on your way to having the down payment you need for your future home.

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