How to save money fast: 20 ways

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In today’s economy, setting aside money for emergencies, unexpected expenses or even higher costs is essential. Whether you’re stashing for an emergency fund or vacation, or just trying to get ahead, figuring out how to save money fast is hard. 

A number of simple strategies can make a significant difference in your finances, often with immediate impact. These 20 proven strategies will help you save money quickly and effectively. 

1. Cancel unnecessary subscriptions and memberships

The average American spends $219 per month on subscriptions. 

Do a full audit of your streaming services, gym memberships and other recurring charges. You might be surprised how much you’re paying for things you don’t use. You can use apps like Trim to identify and cancel unwanted subscriptions automatically.

2. Automate your savings

Many online banks and apps like Qapital allow you to automate your savings by rounding up your purchases or transferring small amounts into your savings account regularly. You can also accomplish this by allocating part of your direct deposit paycheck into your savings account, or by enrolling in a 401(k). 

Automation ensures you are consistently putting money away without even thinking about it. If you’re saving in a 401(k), you’ll also take advantage of any matching contributions from an employer, and the amount you save will compound over time.

3. Set up automatic bill payments

Setting up automatic payments for your bills will ensure you avoid late fees, which the Consumer Financial Protection Bureau reports can cost hundreds per year. Automatic payments may also qualify you for discounts from utility companies or lower interest rates from loan providers.

Use your bank’s online payment features to handle this, or explore third-party services that offer cash back or rebates for using their platforms.

4. Switch banks for better interest rates and fewer fees

Traditional banks often charge steep overdraft fees. Consider switching to an online bank, many of which offer fee-free checking and higher-interest savings accounts. Online banks can offer APYs of up to 5 percent, compared to less than 1 percent with traditional banks.

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

A certificate of deposit (CD) allows you to save money for a set amount of time. CDs are a great way to grow your savings if you can afford to lock away some money for a short period. They offer a fixed interest rate, often higher than savings accounts. Currently, one-year CDs can yield around 4–5 percent APY, a solid return on your money.

6. Use rewards and loyalty programs

Joining rewards programs at grocery stores, pharmacies or retail chains can lead to significant savings. Loyalty programs can save households hundreds of dollars annually, especially when paired with coupons and special offers. 

7. 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. Many vigilant budgeters swear by the “envelope” method where they literally divvy up that month’s cash into different envelopes allocated to different expenses. When the cash is gone, they can’t spend any more.

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 control your spending and avoid losing your money.

8. 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 doing small household repairs yourself can quickly add up to significant savings. 

9. Earn cash back on everyday purchases

If you need to use credit, make sure you’re getting rewarded. Apps like Rakuten and Ibotta provide additional cash back savings when shopping online or in-store.

Cash back credit cards like Chase Freedom 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.

10. 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 if you’re not careful. Make sure to store items properly to maximize shelf life, and ensure you have enough storage space in your home for all your purchases.

11. Clip coupons (both digital and physical)

Sites like Honey and RetailMeNot make it easy to find and apply digital coupons at checkout. 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.

12. Sell unwanted items

One of the fastest ways to generate extra cash is by selling items you no longer need. Platforms like eBay, Poshmark and Facebook Marketplace make it easy to list and sell everything from old electronics to furniture and clothing. 

Before listing, research similar items to price yours competitively, and be sure to take quality photos of your items to attract the attention of your potential customers.

13. Reevaluate your housing costs

Housing often accounts for the largest chunk of your budget. Renters can save money on rent by negotiating rent reductions in exchange for signing longer leases.

If you’re a homeowner, you could reduce housing costs with a refinanced mortgage. Refinancing when lower interest rates are available is a smart idea if you plan to live there for at least two more years. If your interest drops from 7.5% to 6%, for example, a mortgage refinance could lower your monthly payments by $500 and save you nearly $200,000 in total interest. 

14. 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.

15. Reduce energy consumption

Lower your utility bills by using energy-efficient appliances, adjusting your thermostat, and unplugging electronics when not in use. According to Energy.gov, using LED bulbs, sealing air leaks and adjusting your water heater settings can lead to huge savings on your energy bills. Replacing incandescent or CFL bulbs with energy-efficient LED bulbs, for instance, saves the average household $225 each year.

16. 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.

17. Cook at home

Cooking your own meals can significantly reduce your monthly expenses. On average, dining out costs almost three times more than eating at home. Cooking at home with affordable ingredients can cut this cost down. You’ll probably eat healthier, too.

18. 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 expenses like groceries, bills and transportation for a set period, like one day per week or one week per month. 

19. Create a budget

Budgeting is one of the most powerful tools for managing your finances. Apps like You Need A Budget (YNAB) or Monarch can help you track spending, set financial goals and save more effectively. Knowing exactly where your money is going allows you to make smarter spending decisions.

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.

The bottom line

By making small yet impactful changes, you can build your savings quickly and efficiently. Whether you’re canceling subscriptions, switching to fee-free banks or automating your savings, these 20 strategies provide the tools you need to achieve your financial goals. Start implementing these methods today and watch as your savings grow.