This post may contain affiliate links which means that sproutinue.com may make a small commission at no extra cost to you. We only promote products that we love and feel will benefit our readers. Please read our Disclosure Policy for more information.
With the increasing cost of living, saving money for rainy days is crucial.
While saving money can be viewed as a way to deny oneself of life’s pleasures, it can be a way to improve your discipline and live better.
This article delves into ways to save money live better, from sticking to a budget to rounding up your spare change.
As someone who likes to organize my finances to the smallest detail, I employ most of these methods daily. You can save money in a high-yield savings account and let your money work for you.
Dive in for saving hacks on how to live a more intentional, financially savvy life.
Save Money Live Better Meaning
Save money, live better means getting ahead in your finances without sacrificing your happiness and fulfillment.
It means finding ways to choose quality over quantity and give up short-term relief for long-term benefits.
Keeping tabs on your finances seems like an uphill task, but it can be rewarding and fulfilling once you get used to it.
Remember that your money-saving method shouldn’t drastically change your habits and values. Instead, one that’s compatible with your lifestyle is more likely to work.
Smart Ways To Save Money Live Better
Numerous options exist when it comes to saving money. I was initially confused since I was unsure what would work for me.
The goal here isn’t to downsize your lifestyle through excessive cost-cutting but rather to choose a money-saving method that meets your financial needs.
Some methods, like automating your savings, are passive, while others, like budgeting, require you to do the work consistently.
Don’t be afraid to try as many methods as possible to find one that best aligns with your financial goals. You can also combine two or more methods for more effective results.
1. Set Clear Financial Goals
The first step to saving money and living better is having clear financial goals. Are you aiming at settling a debt or saving for retirement?
Setting goals keeps you focused as you find specific strategies to fulfill them. You can set short-term or long-term goals depending on your source of income.
Personally, I work better with short-term goals rather than long-term ones. For instance, if I want to raise $5,000 in five months, I break down the goal into small bits that I can achieve monthly.
This way, I set a goal of $1,000 monthly to make the end goal more manageable and practical. Working with short-term goals helps me maintain the focus.
Setting goals for the long term is also an excellent idea if you can uphold the required discipline.
2. Round Up Your Spare Change
Another clever way to save money and live better is by rounding up your spare change. The next time you buy something, round up the amount to the nearest dollar and save the spare change.
This method may seem less effective, but saving small amounts daily helps you build a substantial amount in the long run. It’s also an excellent option if you always forget to save money.
You can round up your spending with your bank or use financial apps like Acorns. The app lets you invest in stocks once you accumulate $5.
All you need to do is sign up and link your bank account. You can also round up your spending yourself if you can uphold the discipline.
3. Pay Off Debt
Working on paying off your debt helps you free up more money. It can also reduce stress in the long run.
Also, huge debts may lower your credit score, undermining your access to loans like mortgages.
The first step is reviewing your debts, including interest, to determine how much you owe.
From there, devise a strategy to pay off the debts without compromising your living standards. Starting with the highest-interest loans like credit card debt is an excellent way to reduce debt.
On the other hand, starting with small debts builds motivation. Stick to the strategy that works best for you.
You can review your expenses and reduce unnecessary costs to save money on your debts.
4. Use Cashback Apps
Using cashback sites is an excellent way to save money on regular shopping. These apps typically reward you for shopping at particular stores or scanning barcodes.
All you need to do is upload your receipts or, link your debit or credit card and store loyalty accounts to earn automatic savings.
A site like Capital One Shopping compares stores to find the best deals. Incorporating these apps into your life transforms your finances by helping you save more.
5. Work With a Budget
Budgeting is an excellent way to track your spending. A budget helps to identify unnecessary expenditures and find ways to reduce your spending.
A budget is a must-have if you often find yourself impulse buying.
You can find budgeting templates on Pinterest or use budgeting apps for a more passive process. Lots of these resources are accessible online for free.
Creating a weekly budget works for me, but you can create one monthly or based on the frequency of your income.
6. Live Within Your Means
Living within your means is a step toward financial balance and freedom. It involves aligning your needs with your financial limits.
You need to evaluate your priorities if your income doesn’t cover your expenses.
Living within your income helps you spend money wisely by keeping track of your expenditures. You can achieve this by creating a budget and sticking to it.
Instead of bowing to lifestyle inflation, spend on necessary expenses. This helps free up some cash toward your savings and gives you peace of mind.
7. Eliminate Bad Habits
Another way to save money and live better is to eliminate bad habits like impulse buying, spending more than you earn, and not sticking to a budget.
Bad habits cost you several dollars every time you indulge in them. Consider quitting them to free up more money for saving.
Quitting a bad habit isn’t easy. Therefore, you must be intentional to succeed.
You can start with small steps to avoid backsliding. For instance, you can start with a 7-day challenge and then progress to a 30-day challenge to get rid of your bad habits.
Replace the bad habits with healthy ones, like creating a budget and sticking to it, and living below or within your means.
8. Cut Back on Eating Out
Home-cooked meals are generally healthier and cheaper than eating out every day. This method is for you if you’re looking for ways to maintain a healthy lifestyle while cutting back on expenses.
Cooking can also be rewarding as a hobby. Surf the web, YouTube, or TikTok for fun recipes to try at home. You can also spice it up by cooking together as a family.
Like other habits, adjusting to eating at home may take a while. Take small steps towards this to increase your chances of success.
You can channel the money you always spend dining out to grow your savings account.
9. Shop in Bulk or at Discount Stores
Shopping in bulk or at discount stores like Costco, Target, and Walmart gets you more money for saving without compromising value. Such stores usually have lower prices than conventional stores.
Always look out for and compare different stores for the best discount deals. Buying groceries in bulk saves cash, especially if your household is large.
If you decide that shopping in bulk is the best way to save money and live better, consider setting up proper storage for the bulk items to avoid wastage.
10. Purchase Generic Brands
Generic brands are usually way cheaper than brand-name items. You may end up saving more than 50% in some cases.
Most people spend money on name brands for recognition. Always ask yourself if getting the name brand is essential, especially regarding consumables.
Most major companies usually package their items under generic brands to appeal to those on a budget. Advertising may convince you that brand names are better, but that’s not always true.
Test a few store-brand items to see if they’re worth your time. You can always switch back to brand names if the generic ones don’t meet expectations.
11. Consider Carpooling or Public Transport
Owning a car can be more expensive than public transport due to fuel, insurance, parking, and maintenance costs.
According to AAA, owning a car in 2023 costs about $1,015 monthly and $12,182 annually.
You’ll spend much less if you use public transport instead. For instance, an annual transit card in New York is just $132 per month.
Consider carpooling with friends and neighbors with services like Lyft and Uber to cut back on transportation.
Other environmentally friendly ways to save money and live better include cycling and walking to work.
12. Consider Refurbished or Second-hand Items
Refurbished or second-hand items are worth considering, especially if you purchase name brands. They’re a great way to save money without compromising on quality.
This is particularly the case for electronics, clothing, and furniture. You can save up to 50% if you get good deals.
Buying secondhand also helps you find unique items you wouldn’t have found if you bought new. It also goes a long way in reducing your carbon footprint.
13. Home Workouts
You can save money on gym membership by working out at home. There are lots of free workout videos on the internet to guide you.
Invest in secondhand fitness equipment to save money in the long run. You can also try exercise strategies like jogging, walking, or bodyweight exercises such as squats.
Having an accountability partner helps you stick to a formal fitness schedule.
Take advantage of gym offers and refer-your-friend deals to save money without losing your gym membership.
14. Repair Instead of Replacing
Repairing damaged items not only saves you money but also reduces waste. Most of the time, repairing an item is easier than you think.
Find DIY projects on sites like Pinterest, TikTok, and YouTube to learn basic repair skills. Some items you can repair yourself include stuffed animals, clothes, and tools.
Some cases, like appliances, may be more expensive to repair than replace. Always evaluate the situation and choose the alternative that saves more money.
15. Embrace a Minimalist Lifestyle
Minimalism saves you money by reducing unnecessary expenses, reducing debts, and decreasing insurance costs and bills in general.
Minimalism involves stripping your life down to essential requirements. It may be challenging but worth it in the long run.
You don’t have to change your life in a day. A drastic change is unlikely to succeed. Instead, start with eliminating one thing at a time.
There are different 30-day minimalism challenge templates on Pinterest. Start with one and see how your life changes in the first month.
Generally, besides saving money, minimalism is an excellent way to improve your mental health and overall well-being.
16. Sell Items You Don’t Need
Decluttering your home is a perfect way to save money and live better. Find items you no longer use and sell them to make extra cash for saving.
Some of the best items to sell include the following:
In most cases, you’ll earn more than half the original price of your used items. You can make more than 100% if the item is vintage or an antique.
Consider selling on online marketplaces like Poshmark, eBay, and Facebook Marketplace. Alternatively, hosting a garage sale makes money and avoids seller and shipping fees.
17. Prep Your Meals Weekly
Prepping your meals helps you avoid impulse buying and reduces food waste. Meal prepping in advance may be overwhelming initially but rewarding in the long run.
It saves time and helps you eat healthier. Doing a kitchen inventory also helps you avoid purchasing items in excess.
The best approach is to purchase ingredients you can utilize in multiple ways. You must also find ways to store the food properly to avoid wasting it. Invest in storage containers or boxes based on your needs.
18. Make Your Home Energy-Efficient
Investing in energy-saving options in your home is a great way to live better and save money in the long run.
Some of the best ways to save energy in your home include:
- Upgrading to a modern furnace model
- Using energy-efficient light bulbs
- Insulating water heaters
- Using ceiling fans
- Cleaning your appliances regularly
- Using natural lighting during the day
- Unplugging devices when not in use
19. Automate Your Savings
Automating your savings might solve your problems if you often forget to set aside a portion of your income.
Plus, automatic saving means less money to spend on unnecessary items. Consider organizing with your bank to deposit a certain amount into a savings account every month.
Compare different banks to find the best deals on high-interest savings accounts. Also, consider fees and maintenance costs that may eat into your interest.
20. Seasonal Shopping
Buying items during the off-season is a great way to save cash. For instance, holiday decorations may be more expensive during the holiday season.
Also, most stores offer clearance sales right after a specific season to get rid of extra stock. Take advantage of these discounts to save more cash.
Consider comparing stores and coupons to find the best holiday or back-to-school deals. Also, take advantage of promotions to free up more cash towards your savings.
Off-peak travel also saves you loads on shopping, flight, and accommodation charges.
21. Invest in Your Financial Education
Learning how to do it effectively is the best way to save money and live better. Educating yourself on personal finance is vital as it helps you make better financial decisions.
Financial literacy may also lead to higher income opportunities. There are plenty of free resources on the internet you can utilize.
Utilize platforms like YouTube and listen to podcasts for free insights on managing your money better. You can also opt for paid courses, which have a bonus certification.
Tips on How to Save Money Live Better
Remember these tips as you seek ways to free up more cash and improve your living standards.
- There’s no one-size-fits-all answer: Your financial needs differ from another person, requiring a unique method. Find one that aligns best with your goals.
- Be consistent: Consistency is important, especially if you opt for a method that requires a lifestyle change.
- Set a goal: Saving money without a goal is more often unfruitful. Set clear goals to keep you motivated and focused.
- Speak to a financial advisor: You can be more intentional by speaking to a financial advisor to help determine the best way to save money based on your lifestyle and earnings.
I hope my article is helpful in your quest to save money and live better. Always set small goals to keep you going and uphold the discipline.
There’s no way of knowing what works without trying. Experiment with different methods to find one that best suits your lifestyle and financial needs.
It’s also important to understand that saving money isn’t necessarily about excessive cost-cutting. Don’t compromise the quality of life.
Lastly, keep yourself motivated by rewarding yourself after achieving a specific saving milestone.