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How to Save More and Spend Less Each Month

February 29, 2024

How to save more and spend less each month

 

Many individuals are striving to increase their savings, whether saving for a big purchase like a home, for retirement, or just for a rainy day. In fact, saving more money is the top financial goal for 2024 for most Americans. If you’re looking to save more money this year, know that there are things you can do to find room in your budget—even if that budget is tight.

 

In this blog we’ll offer some of our best, easy tips on how to reduce monthly costs, from saving more money on utilities to reducing your food and dining expenses. With a few cost-saving measures, you could find hundreds—or even thousands—of extra dollars to give your savings a boost!

 

1. Cut Down on Subscriptions

Monthly charges may seem affordable when you look at them as a one-time expense. But over the course of a year those smaller monthly payments really add up. Let’s take a look at a sample selection of subscription services to see how much they can end up costing over the course of a year:

 

  • Netflix: $11.99/month
  • Hulu: $7.99/month
  • Disney+: $7.99/month
  • ESPN+: $9.99/month
  • Apple TV: $9.99/month
  • PlayStation Plus: $9.99/month
  • Amazon Music: $9.99/month
  • Gym membership: $49/month
  • iCloud Storage: $2.99/month
  • Amazon Prime: $14.99/month
  • Door Dash Unlimited Delivery: $9.99 month
  • Credit monitoring service: $13.99/month
  • Car wash membership: $22/month

 

Those monthly fees may be just pocket change or the cost of one takeout meal, but add up quickly month after month—to about $180 a month and $2,170.68 per year in this scenario. And if you are putting them on a credit card and not paying off the balance in full each billing cycle, interest charges can significantly add to these costs. 

 

Consider which services you could cut; even eliminating a handful of these monthly subscriptions could result in big savings. Additionally, be sure to watch out for price hikes. Subscription costs are on the rise and come-on deals like low introductory fees can lead to major costs down the road when their prices rise. Regularly review your subscriptions and actual usage to make sure you’re only keeping what you need and use to keep costs manageable. 

 

2. Shop with a List

When you go to the store without a list, it can be easy to fall into the trap of making purchases you don’t need. In fact, the average person spends over $300 a month on these impulse buys. With inflation raising the price of groceries and home essentials nearly 24% since 2020, sticking to a list and only buying what’s on it can go a long way to saving a substantial amount of money each month. The following practices can help you reduce your impulse purchases:

 

  • Plan meals ahead
  • Only shop for clothes at designated times of the year
  • Use store coupons and weekly deals to help guide your shopping
  • Don’t grocery shop when you’re hungry
  • Don’t use shopping as a form of entertainment
  • Set aside a set amount of cash for your shopping trip (and don’t spend any more!)

 

Avoid impulse buys at the grocery store by planning ahead

 

3. Dine In, Not Out

Restaurant prices have increased right in line with grocery prices—24% since before the pandemic. Add in the tip, and each meal out can take a big bite out of your budget. If you dine out regularly, make an effort to swap one meal a week or a month with an easy at-home meal instead. Big family? Reserve fancy restaurants for special occasions only, opting for low-key, affordable establishments at other times.

 

Other ways you can cut costs include:

  • Skipping the drive-thru coffee or cafe trip in the mornings
  • Pack your lunch for work and school
  • Make enough for two meals when you cook and freeze the other for an easy future meal.
  • Takeout counts! Consider how much effort you really are saving once you factor in pickup and dishes and have an easy go-to option to help avoid the temptation.

 

4. Eliminate Online Shopping Temptations

Shopping apps for your favorite retailers like Amazon and Target put millions of items at your fingertips, eliminating trips and time spent in stores. But these apps also make spending money very easy to do. 

If you enjoy the convenience of online shopping but need to cut back on your spending, consider removing shopping apps from your phone. Instead, log into your computer (or browse their website on your phone). Having to navigate to a site, log into your account, and use the browser interface may add just the right amount of extra effort to effectively deter unnecessary shopping.

 

5. Drive Sparingly

If you live in a car-dependent community, chances are a big portion of your monthly budget goes to gas. With the average American household spending $5,000 a year on gas, driving is an easy way to find extra money in your budget. 

 

  • Combine trips: Strategize ways to knock out multiple errands with one car trip.
  • Choose the closer option: Need milk? Choose the convenience store around the corner instead of the grocery store ten minutes away (and avoid impulse buys while you’re at it!)
  • Have a car-free day: Once a week or once a month, pick a day where you skip the car altogether. Take the bus, carpool with a coworker, walk, or just spend the day enjoying your home.

 

Reduce gas bills and carbon footprint by driving sparingly

 

6. Save on Electricity

Just as with driving, it can be easy to fall into habits with electric consumption that lead to overconsumption. But a few simple choices can make a big dent in your bills.

 

LED light bulbs can last from 5-20 years, making them a wonderfully low-maintenance lighting option. More importantly, they use 75% less energy than incandescent bulbs. Putting outdoor lights on timers and switching off lights when you’re not in the room is another way to cut costs.

 

Air conditioning usage has grown steadily over the years, alongside those electric bills. Use time-tested tricks like closing curtains to reduce sun exposure and keep internal temperatures stable, adjust your thermostat one or two degrees warmer as temperatures rise, and dress for the season. Hot water heaters can be set to 120 degrees to avoid scalding and save money. 

 

Looking to make big changes to reduce your home energy consumption? Check out our blog, 7 Home Improvements to Budget for!

 

7. Review Your Cell Phone Plan

With a plethora of cheap options for cell phone coverage out there, it may make sense for you to review your current plan and see how much you could save. Switching to a different provider could save you 50% or more, without sacrificing amenities.

 

If you like your provider but find yourself not using all the perks of your current plan, consider opting for a lower-cost one. Many providers will even work with you to find a better match if you express your budget needs just to keep your business. 

 

Explore options for best interest-earning to help save money

 

8. Open an Interest-Bearing Account

One of the easiest ways to “save money” is to save your money—in a bank account. Automatically setting aside a portion of your income each month reduces the amount of money available to spend, requiring you to make a bigger effort to manage the remaining amount to keep your income and expenditures balanced. Putting that money in an account that earns interest can give those funds a no-cost boost.

 

The best interest-earning accounts are ones without monthly fees or other hidden fees—important so those extra costs don’t eat into your earnings. However, keep in mind that many savings accounts (like money market accounts) that offer the most competitive interest rates will waive monthly fees if you keep a set minimum balance. Be sure to explore your options to make the most of your money.

 

Find a Home for Your Savings at Moody Bank

Finding room for savings in your budget can take a little ingenuity, but finding a home for those savings in Southeast Texas is easy. At Moody Bank, we offer a variety of interest-bearing savings accounts, with options for every need and lifestyle.

 

From traditional savings accounts with low minimum balance requirements to high-interest money market accounts and to secured certificates of deposit, we make saving simple—with easy transfers right from your Moody Bank checking account. Stop by or call a branch location in and around Houston, Austin, Galveston, Lake Jackson, New Braunfels, or Pasadena today to speak to a member of our team, or open a savings account online today! 


How to Save More and Spend Less Each Month | Blog