Do you want to be good at saving money?
Whether you are saving for your first home, your first million, getting out of debt or just wanting to put more money aside each month, this is the article for you.
First we look at what it takes to succeed in saving good money.
Afterwards, you get 60 practical saving tips that can be used in everyday life to achieve your goals.
“Saving is not spending money you have. There is disposable income that is set aside and not used ”
The art of saving money
Most of us want to save a lot of money.
We understand that it is important.
The problem is that many of us are bad at actually putting money aside for the future.
It is easy to say to yourself that “when I get so and so old I will start saving” or to use up all the money you have and maybe a little more.
The truth is that it is only when you actually start saving that you get into good habits.
Saving is also a lot of fun when you actually start to see results from it.
Saving is a habit
It can be difficult to get started with savings if you are not used to it.
To change your habits, the most important thing is to get started.
Remember that a little is better than nothing and that you do not need thousands of dollars to start saving.
It lasts to start with a few hundred bucks in funds a month.
It is easy to get started with savings and it takes a short time to set up a fixed savings agreement.
Most of us are more motivated to save when we actually see the amount saved grow.
Set goals for your savings
To succeed with savings, it is important to set specific goals you can look forward to.
The goal can be to buy your first home, a certain amount, become debt free or retire when you get older.
Perhaps the first goal is as simple as getting the wheels to turn for a short period of time.
Only achieving small savings goals can create a spark and motivation to want to save more.
Reaching small savings goals is a good start and will make it easier to see that even larger savings goals are possible to achieve with a little effort.
Still, never be afraid to set too high a goal.
Everything can be achieved as long as you are motivated and put in the effort needed.
So many percent of the income you should save
How much of your income you should save depends on your life situation and what the goal of your savings is.
Everyone is in different life situations.
The answer depends on what your goal is.
If the goal is to have hundreds of dollars in your account before you retire, it will surprise you how little you need to save every month for 40 years.
If the goal is to have a 100,000 dollars in the account within 10 years, the answer is completely different.
With an income of 50,000 USD, you need to save around 18% of your salary after tax every month to reach 100,000 USD within 10 years.
This includes an annual return in funds of 8%.
Difficult, you might think.
Yes – it may be difficult, but it is possible.
The most important thing is to get started.
It can be as simple as saving a hundred bucks in funds a month and then increasing little by little from there.
When you start saving, it will be motivating in itself and you will want to save even more, even faster.
Eventually you will find a level that suits both your income and your expenses.
Set up fixed savings – get the money out of sight
Setting up fixed savings is essential in order not to give up on savings.
It is best to set up automatic withdrawals to a separate account, such as directly to funds.
The harder it is to withdraw the money, the better.
Here it is important to get the money out of sight.
It is much more likely that you will leave the money standing if there is a high threshold for taking it out again.
For example, if you save in mutual funds, you have to sell units to get the money out.
This increases the threshold for withdrawing money and the probability that you will reach your goal will be much higher.
Get rid of expensive debt
It is easy to end up with expensive debts like credit cards and other high interest rate loans.
This must go away, because interest rates will eat up important parts of your savings.
Prioritize the most expensive loans first, or start with the smallest loan to get the motivation up.
Although it is recommended to get rid of expensive debt as soon as possible, many find motivation in saving next door as well.
If you are more motivated by saving a little in funds next to the repayment, you should do so.
Invest the money – make it grow faster
If you are serious about growing your savings, you need to invest them.
Having money in a savings account is only useful if the alternative is that you would waste it or that you need it tomorrow.
With today’s low interest rates, the reality is that your money will be worth less by staying in the bank for a long time.
This is because inflation of around 2% annually eats up the interest gain, even though the money is in a high-interest account.
For most people, the best and safest way to invest money would be to invest them in mutual funds, more specifically global index funds.
It is easy to get started with savings in funds and it only takes a few minutes to set up a fixed savings agreement.
There are many different types of funds you can invest in, but index funds have the lowest costs and have historically provided good returns without too much risk.
By investing your money in a global index fund, you spread your money in stocks in hundreds of companies around the world.
If you have a short savings horizon of less than 5 years, you may want to take a closer look at fixed income funds as bond funds.
Fixed income funds have a lower return than equity funds, but also have a lower risk and your money will fluctuate less in value.
If your goal is housing savings, you should first consider filling up your savings account before proceeding with funds.
Lower your costs
If you want to save a good percentage of a regular income, you have to sacrifice something.
Everyone is in a different situation, but there is rarely a good excuse for not being able to save money.
Focus on the biggest costs first.
That is, place of residence, transport and fixed expenses such as insurance.
Many people spend half or more of disposable income on housing.
It works poorly if you want to save a lot of money. As a young person, you can live with parents, in a collective or in a small dormitory.
If you rent an apartment, you can find one that is cheaper, or bring in a roommate / girlfriend who pays for it.
If you own your own home, you can negotiate the interest rate.
Insurance and other agreements
Taking a phone call to negotiate insurance, interest rates and the like takes a short time and can quickly save you many hundreds of dollars a year.
Car and transport
A car is expensive and if it is not absolutely necessary you can sell it, cycle or take public transport instead.
If you need a car, you can switch to one that is cheaper to own or rent it out on a sharing service to reduce costs.
See 50 practical ways to save money in everyday life further down.
Increase your income
If your goal is to save a lot of money, cutting costs is infrequent enough.
Most people manage to have it hard for a period of time to reach a savings goal such as housing, but you should also have a good time in life.
Fortunately, you have the opportunity to increase your income if you really want to. A natural place to start is to negotiate a higher salary.
Furthermore, you can do things like take a temporary extra job next to the full-time job, rent a car or start a side project that can provide extra income.
60 practical ways to save money:
To make it easier to succeed with saving, I have collected 60 good tips for saving money in everyday life + 20 bonus tips at the end.
1. Set a savings goal
A good starting point is to think about what the purpose of your savings is.
The focus is on building up a buffer, a cash contribution, saving for a pension or financing a trip.
Maybe a mix? Find your thing and then set a reasonable savings goal – preferably with smaller intermediate goals, it will help you keep your motivation up.
2. Automatic saving
Ensure that your savings are eliminated by automating it.
You do this easily by setting up a standing transmission.
3. Shop for clothes you need
If you need a suit for the job, choose one with a cut that lasts over time and fits most things.
Casual clothes can be both simpler and cheaper.
4. Set up a budget
When you are going to save money, it is important to have control over your fixed income and expenses.
A budget allows you to plan how to spend and save your money each month.
In addition, the budget gives you a good overview of how you spend your money – so you can more easily see what you can cut out to save more money.
Make an overview of fixed income and expenses. When fixed expenses are deducted from income, you are left with the amount that will cover living costs and savings.
Take care of the savings first, preferably with an automatic move.
Creating a budget without following it is of little use – so here it is important to follow the budget carefully.
5. Savings account, funds or shares
Be sure to invest your money either in a savings account with interest or in funds and / or equities, so that they have the opportunity to grow with the interest-on-interest effect.
If you find it difficult and cumbersome with funds and shares, there are apps to get help from.
I dont know which apps there are in your country but in Sweden there is Spira, Opti and Fundler.
6. Get rid of expensive debts like credit cards and consumer loans
Do you have a credit card or consumer loan that you have not repaid?
These loans have very high interest rates and cost you a lot of money not to pay down.
Often, loans like this can ruin your entire savings.
Prioritize getting repaid expensive loans like this as soon as possible.
If you have several expensive small loans with different banks, it can be smart to refinance loans and collect them from a bank with good loan terms.
7. Review expenses
Map out what expenses you have and see what items you can reduce. Remember that many small streams make a big difference.
8. Cut unnecessary costs
One of the most important things to do if you want to save money is to cut down on unnecessary costs.
Most of us spend more money than necessary in our daily lives – whether it be on food, clothing, electronics, power services or other living expenses.
We go into more practical ways to cut costs further down the list.
9. Negotiate the interest rate
If you have a mortgage or private loan, it may be a good idea to contact the bank and try to negotiate the interest rate.
You can do this either yourself or through a loan intermediary.
10. Increase revenue
Of course, one of the best ways to save more money is to increase your income.
If your finances are so tight that you have saved on everything you can save on, the next step is to earn more income.
This can be done by negotiating the salary, getting a better paid job, or getting an extra job next door.
There are many ways to get a side income, whether it is by getting an extra job or trying to make money online.
For example, many students choose to earn a few extra dollars by answering paid surveys.
The best thing for many is to get a passive income next to the main income.
11. Collect loans and credits
Do you have several different personal loans and credits? Instead, make sure to collect them under a single loan and reduce interest costs significantly.
12. Collect all insurance
Most insurance companies give a discount if you collect all your insurance with them. Compare different companies and see which ones offer you the best deal.
13. Compare prices
There are many good comparison sites online. Use them to see which companies can give you the best price on, for example, electricity contracts, broadband and mobile subscriptions.
Same thing if you are going to buy some stuff, do a little research first and find out which store is the cheapest.
It is smooth and easy and can save you a lot of money.
14. Save money on electricity
Do you pay for electricity yourself? Then a good tip is to check out who offers the best electricity price and switch to a cheaper electricity supplier.
An easy way to do this is to use comparison services such as Chooseenergy.com and Constellastion.com
There you get non-binding offers from several suppliers and can choose the ones that offer you the best offer.
It does not get easier! There are also many measures you can take to save electricity at home:
- Take shorter and colder showers,
- Turn off lights in rooms you do not use and when you are not at home,
- Turn off TV and other electrical appliances when not in use
- Use less electric heat
- Wait to use the dishwasher and washing machine until they are full
- Switch to a cheaper electricity supplier
Who you get your electricity does not matter – it arrives at your home no matter what.
When it comes to electricity supplier, price is therefore the most important thing to think about.
Several electricity suppliers often have good offers, but also be careful not to go for lure offers that are too good to be true.
15. Cut out subscriptions
It’s important to have some entertainment in everyday life, but do you really need Netflix, Sumo, HBO, Spotify and Xbox Gamepass?
Remember that a subscription that costs 10 bucks a month is equivalent to 120 dollars a year.
Therefore, it quickly becomes a few hundred bucks a year to save on cutting out subscription you do not need.
List your various subscriptions. Is there someone or some you can spare?
Maybe it’s enough with either HBO or Netflix instead of both?
Finish those you do not need.
16. Direct debit and e-invoice
Do you still get some bills home in the mailbox? Take action and put them on direct debit or e-invoice.
Then you avoid administrative fees, reduce the risk of reminder fees and also do the environment a favor.
Smart saving is the best saving. And especially when it benefits both the savings account and the environment.
17. Pay bills on time
When it comes to saving money, it is important to pay your bills as soon as you can.
Bills quickly become much more expensive as soon as late fees and interest begin to arrive.
These extra costs can quickly ruin a lot of your savings. Try to keep up to date with bills as soon as you have the opportunity if you are behind.
18. Save all receipts
Save all receipts and put the costs in an excel sheet, sometimes it runs away a lot of money on items we are not even aware of.
Wait with your “want” purchases. At least one month for everyday things, over a year when it comes to a new car, etc. Then no purchases are made on impulse.
20. Save money on food
There are many simple tricks to reduce food costs:
- Always write a shopping list and buy only what you need.
- Buy items with a “short date”.
- Buy vegetarian over animal.
- Buy fruits and vegetables according to the season.
- Avoid semi-finished products.
- It is both tastier, cheaper and healthier with food that is prepared from scratch.
- Make a big cook and bring lunch boxes to work.
- There will always be days when it feels really daunting to cook.
- Be foresighted and always have the ingredients for something quick and easy at home, so you do not have to spend money on some boring take away.
21. Put money aside as soon as you get it
As mentioned, you should set aside the amount to be saved as soon as you receive the money in the account – whether it is a salary, scholarship, gifts from a birthday or the like.
You should pay yourself before you pay others. Here, it is wise to set aside a certain amount of your income each month, such as 10 or 20% of your income.
If you struggle not to touch the amount a little a month, you can try to move the money to an account that is hidden in the online bank – or to a completely different bank to get the money out of sight in everyday life.
This makes it easier not to touch them. If you have money left over each month, you may want to invest it in stocks or mutual funds to make them grow.
An easy alternative to saving money in funds is to use a savings robot like.
22. Sell or exchange things you do not need
We all have clothes and stuff that just lie in the cupboards and litter. Clean out at regular intervals and sell on Craigslist or exchange with friends and acquaintances. You earn a penny and it is also very liberating.
23. Buy second hand or borrow
Buy your clothes second hand or borrow from a clothing library (yes, there really is!). It gives you a cheaper, nicer and more personal wardrobe.
24. Set up micro-saving
Most banks offer the option to save a fixed amount each time you draw the card, so-called micro savings.
By saving an optional amount, for example 3 USD each time you draw the card, you will be able to quickly top up your savings account.
25 Buy seasonal vegetables
Buy seasonal vegetables / fruit and adapt the menu to discount offers.
26. Make lunch box
Make lunch box. Hundreds of dollars can be saved by skipping outdoor lunch.
Read newspapers online or at the library
Should you go to a restaurant, do it planned and not because you can not cook. Be frugal with the tip or skip it altogether.
Book trips when everyone else does not, ie either long before or just before
Rent a house on vacation. In any case, if you are away for a long time, it is significantly cheaper than hotels
31. Limit shopping!
Many of us love shopping and shopping online. However, shopping quickly becomes expensive, and if you want to save money, this is something that must be cut down hard on.
When we humans shop, we experience a kind of intoxication of happiness. The reason is that when we see nice things we want in the store, dopamine is released in the brain which motivates us to complete the process and buy them.
This causes us to make bad decisions and buy things we do not really need – be it new clothes, shoes, makeup, a cell phone or a new car.
However, research has shown that it is the expectations of shopping that cause the dopamine intoxication – not to actually buy the item.
If you are aware of this when you are about to shop for something, it is easier not to buy – and you save your money.
A good tip is not to buy the thing the first time you see it. Rather come back the next day and consider whether you actually need it – or whether it was not as necessary as you first thought anyway.
32. Learn something for free
Attend free seminars and lectures. You learn something and if you are extra frugal, you skip dinner / breakfast because snacks are usually served.
33. Offer services
Services and reciprocal services. Are you good at something that others need? Change services. The sharing economy is just growing and growing, you can take advantage of this.
34. Intrest rate
Have a variable interest rate on your loans, it pays off in 9 cases out of 10
35. Negotiate intrest
Negotiate interest rates, both where you pay money and where you get money.
36. The little stuff
Even small costs make a difference. A newspaper award for “only” 9.99 / month will be just over 120 USD per year.
37. Save money on clothes
We have already talked about how you can save money on shopping, but everyone needs new clothes sometimes.
If you first need new clothes, there is a lot to save by not buying branded clothes and rather shopping in cheaper clothing stores.
You may also want to buy clothes on offer – but be careful not to buy with unnecessary things just because it is on offer.
38. Do not buy unnecessary electronics
Do you like shopping for new electronics and gadgets?
Then you are not alone. But you do not actually need the latest and greatest phone, headset, PC monitor or TV.
Remember that all home electronics fall in price the moment you buy them.
If there is something you really need, then buy last year’s model!
39. Take good care of your things
Whether it is your mobile phone, apartment, car, cottage or house – take good care of your things!
Then you do not have to buy new too often, and you get more in return for your things the day you want to sell them.
40. Shop used when you can
Even if you want to save money, you can of course not completely avoid buying things.
Whether you need a new phone, a new piece of furniture or if the stove has broken down – there is a lot of money to be saved on buying a used one instead of buying a new one.
Also, it is much more environmentally friendly to buy used!
41. Buy cheaper food and food on offer
You can save a lot of money by choosing the stores’ own brands and low-priced products.
Most of what you put in the shopping cart of old habit is the result of years of effort by the manufacturers to market the products so that you choose them over others.
By choosing the stores’ own brands such as Food4Less, Amazon fresh, County Market and the like, you can save a lot of money on food during the week, month and year.
It is also a good idea to keep track of which stores have offers for the groceries you need at all times.
42. Plan your meals and shop once a week
By planning all the meals you will have during the week, it will be easier to follow your budget.
In addition, if you only shop once a week, you avoid making stupid impulse purchases that cost you extra money… and remember:
Do not go to the store when you are hungry! Then the danger is great of buying unnecessary food at home.
43. Do not buy expensive lunch outside
It is easy to be tempted to buy hot food, baguettes or salad from the salad bar when you have lunch at work or school.
If you first stop by a store or kiosk to buy lunch, it is also easy to bring other unnecessary things such as baked goods and coffee.
When you want to save money, it is important to have a packed lunch at school or work.
If you have a refrigerator in the workplace, you can stand for example crispbread and cold cuts at work – and if there is a microwave, you can bring dinner leftovers.
Then you avoid the expensive shopping trip and you save a lot of money during the week!
44. Freeze your food
If there is one thing we humans are good at, it is throwing away food – which of course is completely unnecessary.
In addition to planning meals and shopping for groceries once a week, you can save a lot of money on freezing food.
Everything from bread and baked goods to cheese, milk, pasta and berries can be frozen and used later.
My tips are to:
- Cut up bread in the grocery store and freeze the slices of bread you do not use
- Buy cheese on offer and freeze until you need it
- Freeze pasta leftovers and lasagna so you have dinner for a later occasion
45. Stop shopping at the kiosk and gas station
Do you find it easy to stop by a kiosk or petrol station to buy food and drink? You need to stop immediately if you want to save money.
Items you buy in kiosks and petrol stations are often between 25 – 75% more expensive than in a regular grocery store.
46. Make the food at home
Eating out is one of the most expensive things you can do. By buying the ingredients and making your food at home, you save a lot of money.
An absolutely fine dinner does not have to cost more than 2 – 5 bucks per person if you really want to save money.
47. Sell things you do not need
If you really need money, there is little that is as effective as selling things you do not use or no longer need.
Sell everything that does not make you happy! Furniture, mobile phones, electronics, watches, bicycles or clothes – most of your belongings can be sold.
It is completely free to post things on Facebook Market, so here you have nothing to lose by trying to sell away.
Maybe there is something valuable in a basement, storage room, garage or attic?
48. Introduce free days
Do you usually buy something every single day? Many people have a habit of buying something new daily.
Often it’s just little things like small shopping trips at the store – other times it’s online shopping where the bank card really gets a run.
To shop only once or twice a week and drop out to buy lunch out, then it is possible to have completely free days.
By introducing free days where you do not spend a single penny, you rearrange your brain to think that it is not necessary to buy something every day.
49. Cut out lotto and other money games
Many people like to spend money on gambling such as lotto and betting, but in the vast, vast majority of cases, this is a gigantic losing project that will never pay off.
If you bet on 10 USD a week, it will be 520 USD in the course of a year. Instead, put the amount you would have spent on tipping into a savings account, or in an equity fund.
50. Out and about? Check the flight price several times
If you are going to fly, it can be a lot to save by checking flight prices several times and on various websites.
Air fares have dynamic prices, which means that they go up and down a lot.
You can set up price alerts with alarms at destinations you intend to travel to, and at Skyscanner you will always find the cheapest flights available.
51. Save money on fuel
It is well known that the price of fuel varies throughout the week. By refueling on low-cost days, you can quickly end up saving a good amount a month or year.
50 liters of fuel for USD 1.697 / liter = USD 72.5.
50 liters of fuel for USD 1.346 / liter = USD 57.5.
If you then fill 20 tanks a year, you will save 300 USD on filling the most affordable days.
52. Switch to a cheaper fitness center
Why work out at an expensive gym if you can work out at a cheap one?
Many people spend a lot of money on expensive gyms, but there are often cheaper alternatives.
If you really want to save money, the cheapest course is to drop out of the gym altogether and work out outdoors and at home instead.
53. Drink less alcohol
As a student or young adult, many people spend a lot of money on nightlife. In other words, going to town with friends is expensive.
Here are 2 tips to save money out there:
- Go out on the town less often
- Cut down on the number of units you buy out there
By dropping a weekend on the town and at the same time cutting down on the number of units once you are out, you can save a significant amount of money during the month.
54. Stop smoking
Easy for you to say, you might think – but by quitting smoking you can save large amounts of money a year.
Enough to take you on several holiday trips, renovate your home or buy yourself something really nice.
If you want to quit smoking, you should check out the Quit app.
The app gives you an overview of how much money you have saved at any given time to quit and comes with tips, advice and tricks to help you succeed with the quit.
55. Be with friends without spending money
Many social gatherings are related to spending money, but there is a lot you can do with friends without it costing the shirt.
To make it easier to find something for free or cheap, it is a good idea to tell your friends that you want to save money.
Often the answer from your friends will be that they will also save money!
Something you can do together that does not cost a lot of money is, for example, go for a walk in the woods, have a movie night or a series marathon, play board games or cards, play video games or play football and other sports.
It can also be nice to arrange a joint dinner where everyone brings their own dish.
56. Drop Taxi after the city trip
It’s easy to get into a taxi after a trip out on the town – but it’s expensive!
It will be especially expensive if you are often out on the town and do this.
Going home: Is it a short way home? By walking the road home for 10 – 20 minutes, you quickly save 2 – 30 bucks in taxi money. Also, you get burned by some calories that the evening has brought with it.
Take the night bus: Many places have dedicated night buses that take people home from the city.
The night buses are often very affordable and in some cases free.
Arranging a ride with friends: Arranging a ride with friends, family or “acquaintances” at a fixed price in advance of the city trip can often save you a good deal of money.
Water is good at home. Very many people buy water in plastic bottles. It is both expensive for the wallet and the environment. So water is good just like home-brewed coffee.
58. Directly from a wholesaler
Buying directly from a wholesaler is becoming more common. In addition, shipping is often free worldwide.
Some things can be bought in 1-pack, others only in large packs. Do you know someone who wants the same thing as you?
Divide the cost (or if you are really frugal, charge a fee for the job you put in).
Energy-saving light bulbs are excellent to buy directly from the factory, where you reduce expenses in several stages.
59. Save money on insurance
If you want to save money, it may be a good idea to take a look at your insurance policies.
It can often be a lot of money to save on switching insurance companies and many also double up on unnecessary insurance policies.
But beware, many of the cheapest insurance companies are cheap per month – but provide poor help if the accident is first out.
Therefore, read the text in small print well before you decide. In particular, there are big differences in bonus losses if you crash your car at different companies.
60. Do not take out consumer loans
Do not take out expensive consumer loans to make ends meet!
Consumer loans will only lead to a vicious circle where you will have even tighter finances later.
More savings tips – 10 leisure activities for families with children that cost little (or no) money
- The library. In addition to the obvious (books), many libraries have theater performances, tips, etc.
- Cave diving. Invest in two flashlights, helmets and search for caves near you.
- Adventure weekend with the children: cook outdoors, make your own windbreak of spruce twigs and find out which plants can be eaten. For overnight stays, sleeping bags can be good to have, otherwise it is enough to invest in a good knife.
- Do you receive fitness allowance from your work? Many people let it lapse, which is a shame, because even if you are not a training maniac, it is possible to get a SIM card for the money and then you only need to pay a small amount for the child / children.
- The Park Theater puts on free performances throughout the summer
- For younger children: visit all the playgrounds in your home municipality. Let the children rate with stickers and by describing what was good (can also be done with eg outdoor swimming in the summer)
- Visit a fire station. Both fun and educational
- Make stone trolls (and make sure they have somewhere to live under a stump)
- Do everyday things differently. Friday cozy on a regular Monday, eat dinner on a picnic blanket in the living room, make a salad of dandelion leaves. Make a treasure map for the partner who comes home last and let him find your picnic blanket
- Geocaching. A decent new phone is all that is needed, then just look for all the millions of treasures that are hidden all over the world.
Extreme tips to save money
Do not forget: time is money. In extreme cases, it is important to find out how much you are saving compared to other things that save money.
I think e.g. on chasing coupons to save a few bucks, when two hours of overtime at work can save it many times over.
But if you want to go to the extreme, here are some tips to save money as a real treat:
- Teach your cat to use the toilet
- Make your own sour milk. Milk can be several dollars cheaper than sour milk
- Buy exactly the same socks. Socks get lost or break. This way you can maximize the number of working pairs.
- Ask your neighbor if you can borrow his / her router for a small fee each month.
- Recycle gift wrap
- Get a partner and make sure you move together, divide your expenses in half (an initial investment in getting the person to fall, however, may be relevant)
- Boil soup on a nail. Or almost at least. Nettle soup is both free and healthy.
- Tasting on Fridays in your local store can replace a whole meal with a little finesse
- Shower counterclockwise (who in the family can get ready in under five minutes?).
- Hot water costs money, once a year it may be justified to take a hot bath.
Good luck with your savings!
Also check out this video money saving tactics I found on Youtube if you wanna learn even more: