Saving money isn’t about giving up everything you like. It’s about setting up a few moves that run on their own, then trimming the bills you’ve stopped noticing. Here are nine ways that actually add up, in the order I’d do them.
Start here
The three that move the needle most
- Automate a transfer on payday. Money you never see in checking is money you don’t spend.
- Park it in a high yield savings account. Same safety as any savings account, with a much better APY than a typical branch account.
- See where the rest goes. A budgeting app shows the leaks. Monarch is the one I’d start with.
Use code MONARCHVIP at checkout. New members only. The annual Core plan is $49.99 for the first year, then $99.99 a year.
The best ways to save money at a glance
Pick your starting point from this table, then read the section for any move you want the details on.
| Move | Best for | Effort | Where the savings come from |
|---|---|---|---|
| 1. Build a small cushion | Anyone with no buffer yet | One-time | Stops a surprise bill from landing on a card |
| 2. Automate a transfer | People who spend whatever is in checking | One-time setup | Money moves before you can spend it |
| 3. High yield savings | Cash you will not touch soon | One-time setup | A higher APY than a typical savings account |
| 4. Track your spending | You are not sure where it goes | A few minutes a week | You find leaks and unused subscriptions |
| 5. Cut the bills you ignore | Anyone paying full price for phone, internet or insurance | One afternoon | Lower monthly bills, every month |
| 6. Cash back on what you buy | Regular shoppers who buy gas, groceries and meals | Ongoing, small | Cash back or gift cards on purchases you already make |
| 7. A bank bonus | People already ready to switch banks | One-time | A cash bonus for qualifying deposits |
| 8. Spend less on food | Households with a big grocery bill | Ongoing | Fewer impulse buys and less waste |
| 9. Pay off expensive debt | Anyone carrying card balances | Ongoing | You stop paying card interest |
1. Build a small cushion first
Before you chase any savings goal, make sure one surprise bill won’t go on a credit card. A car repair or a vet visit is how a savings plan turns into debt. Your first target doesn’t need to be big. Even a few hundred dollars changes how a bad month feels.
When you’re ready for the full version, My Millennial Guide breaks down how much an emergency fund should hold and where to keep it.
2. Automate a transfer on payday
This is the single best habit. Set a recurring transfer from checking to savings for the day after your paycheck lands. Start with an amount you won’t miss, even if it’s small, and raise it every time you get a raise or finish paying off a bill.
A common rule of thumb is to save about 20% of your take-home pay, but the right number is whatever you’ll actually keep doing. A $25 transfer that never stops beats a $300 plan you cancel in March.
Here’s a quick example. Say you take home $3,000 a month. Saving 20% is $600 a month, or $7,200 in a year, before any interest. If that’s too steep today, a $150 transfer is still $1,800 in a year, and it takes one setup session.
Ben’s take
Make the transfer happen the day after payday, not the day before the bills hit. You’ll adjust your spending to what’s left without feeling it.
3. Put your savings in a high yield savings account
Where you keep your cushion matters. Online banks usually pay a lot more than a typical branch savings account, and the money is just as safe when the bank is FDIC insured. You get the same access, with a better APY.
We compared five of them, including who each one fits and the catch with each. Start with our guide to the best high yield savings accounts.
4. See where your money goes with a budgeting app
You can’t cut what you can’t see. A budgeting app pulls in your accounts, sorts your spending and shows you the subscriptions you forgot about.
Our pick for budgeting
Monarch
- Best forSeeing every account in one place
- Offer50% off the first year
- First year$49.99, then $99.99 a year
- Free trial7 days
Why we like it: it ties your accounts, budget and goals together, and the app has no ads. You can set a goal like a cushion or a trip and watch it fill up.
The catch: it’s a paid app. If you have one checking account and no goals, a spreadsheet may be plenty. The code MONARCHVIP is for new members on the annual Core plan, and it can’t be combined with other offers.
Want to compare before you pay for anything? Here’s a roundup of the best budgeting apps, including free ones.
5. Cut the bills you stopped noticing
Phone, internet, insurance, streaming and gym memberships all renew without asking. Once a year, set aside an afternoon. Cancel what you don’t use, call each provider and ask for its best current price, and get fresh quotes on your insurance.
If you’d rather not make the calls yourself, bill negotiation services will do it for a cut of the savings. And if this month is already tight, help paying bills lists free programs that can cover a bill.
6. Earn cash back on what you already buy
You’re going to buy gas, groceries and dinner either way. These two apps pay you a little for it. It’s a few dollars here and there, nothing life changing, but it costs nothing and it adds up over a year.
Upside gives you cash back on gas, groceries and food you buy. It’s free to download.
Fetch turns your shopping receipts into points you can swap for gift cards. Scan a receipt and the points add up.
Use both and you cover most of what you buy: Upside for gas, food and groceries, Fetch for the receipts from everywhere else.
Ben’s take
Cash back apps are a side dish. They’ll never beat cutting a bill, so don’t change where you shop just to chase points.
7. Use a bank bonus when you are switching anyway
If you’re already thinking about a new checking account, a bonus can add to your cushion. Current, for example, pays a $75 bonus with code WELCOME75 once you set up direct deposits totaling $1,500 or more. Terms apply, so read them before you move your paycheck.
We also keep a running list of sign-up bonus apps if you want to see what else is out there.
8. Spend less on food
Food is where most budgets leak. Make a loose plan for the week before you shop, buy store brands on the basics, and check the unit price instead of the sticker price. Eating at home a few more nights a week is the biggest single saver.
A simple routine helps. Check what’s already in the fridge and pantry, write the week’s dinners around it, then shop with a list. Stick to the list and you skip most of the impulse items that blow up a grocery bill.
The other food leak is the stuff you don’t finish. Freeze bread and leftovers, and use what you have before you buy more.
Impulse buys are a bigger leak than any grocery bill. If that’s you, try these 15 ways to stop impulse buying.
9. Pay off expensive debt
Paying off a card that charges 24% is like earning a guaranteed 24% on that money. No savings account comes close. So once your small cushion is in place, aim extra dollars at your highest-APR balance.
Our guide on how to get out of debt walks through six ways to do it, from a free payoff plan to a consolidation loan.
Where should you start?
Read down the list and stop at the first line that sounds like you.
- No cushion at all? Do move 1 and move 2 this week. Even a small automatic transfer counts.
- Cushion but no plan? Open a high yield savings account (move 3) and see where your money goes (move 4).
- Money feels tight every month? Do move 5 first. A lower bill beats any coupon.
- Carrying card balances? Move 9 beats everything else on this list.
- Everything is in order? Add the small stuff: cash back (move 6) and a bank bonus (move 7).
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Common questions about saving money
How much should I save each month?
A common rule of thumb is about 20% of your take-home pay. If that’s out of reach, start with whatever you can automate, even $25 a pay period, and raise it as your income grows or a bill goes away.
What is the fastest way to save money?
Cut a recurring bill. A lower phone, internet or insurance bill saves you every month without any effort after the call. Pair it with an automatic transfer so the savings go straight into your cushion.
Where should I keep my savings?
In a high yield savings account at an FDIC insured bank. You get a better APY than a typical branch savings account with the same safety. See our best high yield savings accounts.
Are cash back apps worth it?
They’re worth it if you’d buy the item anyway and the app takes a minute. Upside and Fetch pay a few dollars at a time. Don’t buy something just for the points.
How do I save money on a low income?
Start with the bills. Ask each provider for a lower rate, cancel what you don’t use and look at free programs. Our help paying bills page has places to start. Then automate a small transfer, even a few dollars.
Should I save or pay off debt first?
Build a small cushion first so a surprise bill doesn’t go on a card. After that, a card charging 20% or more is the best place for extra money. See how to get out of debt.
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