How To Save Money Fast: 25 Ways

According to Bankrate’s latest emergency savings report, 27 percent of U.S. adults don’t have emergency savings and 59 percent aren’t comfortable with their current emergency savings amount. Having an emergency fund, usually equivalent to three to six months’ worth of living expenses, and regularly saving money, can help you break free from the cycle of living paycheck to paycheck. 

Whether you want to learn how to save money fast to get peace of mind for unexpected bills or reap the benefits of putting more money into a high-yield savings account, we’ve compiled a list of 25 tips to help you save money fast.

1. Assess your current financial habits

Before you dive into any of the savings tips, it’s essential to understand your current financial habits. Consider tracking your expenses for a period of 30 days to evaluate your fixed and variable costs. Fixed costs are defined as expenses such as rent, insurance premiums and car payments that don’t change monthly. Variable costs include such items as grocery bills, gas, dining out, entertainment and other expenses that fluctuate depending on your lifestyle.

Once you’ve taken charge of your finances as they stand today, you can start planning a strategy for the best way to save money fast.

2. Create a budget

Budgeting is a fundamental skill that helps you build financial awareness and literacy. You can budget with pen and paper to tally up daily expenses or use paid or free budgeting tools or apps. Apps such as You Need A Budget (YNAB) or Monarch can help you track spending, set financial goals and save more effectively. Knowing where your money is going allows you to make smarter spending decisions and cut out miscellaneous costs to help you save money fast.

3. Work on paying down debt

Before you go all in on your savings, don’t forget to consider the part of your financial life that can actively eat into your monthly savings: interest rates on your debt.

Look at any debt with higher interest rates, like your credit card balance, and tackle that first. And remember, you can and should still contribute to your savings while paying down your debt.

4. Consider alternate forms of transportation

According to a recent research study by the Bureau of Transportation Statistics, 52% of all trips are less than three miles and 28% are less than one mile. Assuming you have the necessary infrastructure to do so safely, swapping your car for a bicycle or walking can save you hundreds of dollars over the course of a year. However, your savings will vary depending on how often and what distances you drive and gas prices.

5. Examine your subscriptions

Subscriptions exist for almost everything, including food delivery, streaming services, monthly boxes, learning platforms, budget apps and work tools. You may find that you’re paying for subscriptions you don’t use or don’t even realize that you’re still subscribed to a service. 

Take a look at what payments are coming out of your bank account or going on your credit card statements to see if you can find things to cut out.

6. Automate your savings

Many online banks and apps like Qapital allow you to automate your savings by regularly rounding up your purchases or transferring small amounts into your savings account.

Automation ensures you are consistently putting money away without manual intervention.

7. Set up automatic bill payments

Setting up automatic payments for your bills can help you avoid late fees, which the Consumer Financial Protection Bureau reports can cost hundreds per year. This simple adjustment can be a great starting point for those figuring out how to save money on late fees while keeping their finances organized.

While automated payments are convenient, it’s vital to ensure that your account always has the funds necessary to pay your bills in full. If your account is overdrafted from an automated payment, you may get hit with overdraft fees from your bank as well as late fees if the service provider or other party doesn’t get the requested money on time.

8. Switch banks for better interest rates and fewer fees

Traditional banks may charge fees that chip away at your savings. Consider switching to an online-only bank, many of which offer fee-free checking and higher-interest savings accounts.

Online banks can offer savings accounts with annual percentage yields (APYs) of more than 4.5 percent, compared with less than 1 percent at traditional banks.

9. Open a short-term certificate of deposit (CD)

A certificate of deposit (CD) is a great way to grow your savings if you can afford to lock away some money temporarily. They offer a fixed interest rate, often higher than savings accounts.

Currently, one-year CDs can yield more than 4.5 percent APY, a solid return on your money.

10. Use rewards and loyalty programs

Joining rewards programs at grocery stores, pharmacies or retail chains can be an easy way to maximize your budget, especially for those learning how to save money. Loyalty programs can save households hundreds of dollars annually, especially with coupons and special offers. With that said, be wary of promotional offers that tempt you into spending more than you had planned.

11. Pay with cash or set spending limits

Psychologically, it’s harder to part with physical cash than it is to swipe a card, so paying with cash for everyday expenses can curb impulse purchases like that new game or the next round of drinks.

On the other hand, if a credit card fits your lifestyle better, you can take advantage of some safety nets. For example, many banks allow you to set spending limits or alerts on your credit cards, which help you control your spending and avoid losing money.

12. Stop paying for convenience services

Americans spend a lot on convenience services — over $400 per month on delivery alone. To start recouping some of that money, stop outsourcing your services and “insource” instead. Opting to cook at home or do minor household repairs can quickly add to significant savings.

13. Earn cash back on everyday purchases

If you need to use credit, make sure you’re rewarded. Apps like Rakuten and Ibotta provide additional cash back savings when shopping online or in-store. Cash back credit cards, like Chase Freedom Unlimited or Discover It, offer up to 5 percent cash back on rotating categories such as groceries, dining and online shopping. Just remember to pay off the balance each month to avoid interest charges.

14. Buy in bulk

Buying in bulk from stores like Costco or Sam’s Club can save you a lot of money in the long term, particularly for non-perishable items. Bulk buying can reduce your shopping costs significantly, especially if you’re carefully watching the cost per unit (CPU).

However, be cautious — buying perishable goods in bulk could lead to food waste. Make sure to store items properly to maximize shelf life.

15. Clip coupons

Sites like Honey and RetailMeNot make finding and applying digital coupons at checkout easy. According to CouponFollow, a leading coupon company, households that use coupons save an average of $1,465 annually.

Pair coupon usage with in-store promotions for deeper discounts and automate your coupon clippings by installing a mobile app or browser extension that automatically finds and applies coupons at checkout.

16. Refinance loans for better rates

Refinancing replaces your current loan with one that has better terms, such as a lower interest rate. This usually means lower payments every month. It also helps you pay off the loan faster and spend less on interest over time.

However, refinancing isn’t free. According to Freddie Mac, switching a mortgage often costs about 3 percent to 6 percent, depending on your loan and where you live. Always compare offers from different lenders to find the best rate. Even a small drop in interest can lead to significant savings. It’s a simple way to make your debt less expensive.

17. Shop for better insurance rates

Many people stick with the same insurance provider for years, not realizing they could save hundreds by switching. Shopping around and comparing quotes on car, home or renters insurance can lead to big savings.

You can also consider bundling your home and car insurance for the best deals.

18. Use a no-fee credit card

If your credit card charges an annual fee, consider downgrading to a no-fee option. Many companies, like Citi or American Express, offer no-annual-fee credit card alternatives that still provide rewards without the added cost.

19. Plan no-spend days

No-spend challenges are an effective way to reset your budget and become more mindful of unnecessary expenses. Challenge yourself to go without spending money on anything outside of essential costs like groceries, bills and transportation for a set period, like one day per week or one week per month.

20. Eliminate one spending habit

Eliminating one costly habit — whether it’s your daily coffee, subscription boxes or online shopping sprees — can save hundreds, if not thousands, annually. Identify a habit and commit to reducing or eliminating it to free up extra cash for savings.

21. Buy secondhand or get used items for free 

Secondhand shopping has never been easier thanks to online platforms such as Poshmark, Depop, and ThredUp which offer a wide range of gently used clothing and household goods. You can find unique, high-quality items at a fraction of their original price. Buying secondhand also cuts down on waste and helps reduce greenhouse gas emissions tied to disposal.

According to the National Resources Defense Council, manufacturing new clothes and shoes produces between 4 percent and 8.6 percent of greenhouse gas emissions, which is more than the entire aviation industry.

Buying secondhand can save you a significant amount of money compared to buying new. For example, purchasing used clothing can save about $900 a year. Big-ticket items such as furniture, electronics and home improvement tools are often available in excellent condition at consignment shops or on online platforms such as Craigslist and Facebook Marketplace.

22. Embrace DIY projects

The do-it-yourself, or DIY, movement continues to grow thanks to countless online resources created to help you complete projects at home for a fraction of the cost of hiring professionals. Painting your own home, for example, could save between $500 and $5,000.

Simple DIY tasks such as painting, landscaping or sewing can cut expenses while adding a personal touch to your space or wardrobe. Platforms such as YouTube offer tutorials to help you learn basic car maintenance or home repairs, saving money over time by allowing you to handle small fixes yourself.

23. Go green and save on energy bills

Energy-efficient upgrades to your home, such as installing a programmable thermostat, adding weather stripping to doors and windows or switching to energy-efficient appliances, can reduce utility bills month after month. Many energy companies also provide rebates and tax incentives for eco-friendly home improvements, boosting your savings even more.

Small changes can make a big difference. Turning off lights when not in use, using energy-saving lightbulbs, and washing clothes in cold water all contribute to lower energy costs over time. According to the U.S. Department of Energy, setting your thermostat back 7 to 10 degrees Fahrenheit for eight hours a day can save up to 10% on annual energy bills. Incorporating energy efficiency into your daily routine can be one of the best ways to save money starting today. 

24. Use credit card points and miles wisely 

Getting the most out of your credit card rewards can require a slight learning curve, but it can be worth the effort when done right. The Capital One Venture Rewards credit card, for example, provides points for travel, dining or even everyday purchases like groceries.

Before you make any large purchases, check which card gives you the best return on spending, and don’t be afraid to shop around for credit cards with introductory offers that give you extra points or miles just for signing up.

Keep in mind that credit card rewards are beneficial only if you can pay your balance in full each month and if the value of the rewards exceeds the annual fee. Accruing interest charges can cancel out any points or cash back earned, so it’s essential to use rewards strategically to make them truly worthwhile.

25. Improve your credit score

A low credit score can lead to higher, more expensive rates for everything from credit cards to homeowners insurance. On the other hand, raising your credit score can save you thousands over time. Regularly review your credit reports from Experian, Equifax, and TransUnion to catch errors or signs of fraud. If you find any mistakes, dispute them with the appropriate credit reporting agency.

To improve your score, focus on making payments on time and reducing your credit utilization rate. Avoid applying for new accounts too frequently, as each application triggers a hard inquiry that can temporarily lower your score. Small, consistent efforts can make a big difference in the long run.

The bottom line

Before you take the first steps on your savings journey, it’s critical to get a pulse check on your overall financial wellness. Once you know your spending habits, expenses and debts compared to your income, you can formulate a plan for how to save money and meet your future financial goals, whether that’s adding to your emergency fund, paying off your student loans or planning for a vacation. Download a budgeting app to save money fast and get your financial life under control.