Easy ways to save money

In theory, saving money is easy—just cut back on the amount you spend. But in reality, it gets a little more complicated.

Between gas and groceries, clothes and car payments, there are lots of demands on your hard-earned dollars. No wonder it can feel easier to spend money than save it. Luckily, even when it seems like there’s always another bill to pay or purchase to make, there are easy ways to save money.

If you’ve ever searched for “easy ways to save money,” check out these 11 saving money tips to help you reach your financial goals:

When considering easy ways to save money, start by looking at your spending. Do you know where your money is going? If you don’t, a budget is a great first step. With a budget, you can plan exactly how much you’ll spend on bills and discretionary, or nonessential, purchases like concert tickets or food delivery, each month. Just as important, you’ll be able to plan how much you’ll save each month, too.

For Greg Johnson, co-founder of a personal finance blog, creating and sticking to a budget allowed him and his wife to get out of debt and start saving for their future. 

At the time, the couple was stressed about money and overspending. They started using a zero-sum budget, a budgeting method where every dollar of income is assigned to a specific category. The budget noted how much money was going toward all their expenses, like housing, transportation and food. It also made them account for how much they put into their savings each month.

“Creating a budget really forces you to be very purposeful and very intentional about how you’re saving and spending money,” Johnson says. The Johnsons’ zero-sum budget helped them pay down $50,000 of debt within two years, and they continue to use a budget to grow their savings.

Whether you try the zero-sum method or other saving money tips, the important thing is that you start planning where your money will go.

With a budget, you can do more with your paycheck, Johnson says. But he admits that a spending plan can feel limiting. That’s why it’s important that your budget includes a set amount of money for nonessential expenses.

“You have to treat yourself every once in a while,” he says.

Whether it’s ordering takeout from your favorite Thai restaurant or buying a pair of earrings from a unique online shop, this money-saving tip can keep you motivated to stick with your spending plan.

Once you have a budget in place that accounts for life’s necessities and little luxuries, you’re off to a great start. But you also need to check in on your progress. Johnson recommends taking 5 or 10 minutes at the end of each week to see if you’re on track.

Compare your actual spending to your planned budget, Johnson says. Then ask yourself the following questions:

• Am I accounting for all planned expenses in my budget?

• Do I have enough room for urgent unexpected expenses? 

• Where did I overestimate or underestimate my spending?

• Am I spending on unplanned and unnecessary expenses?

As you answer these questions, you’ll gain a better sense of how your real-life spending fits into your desired budget. You’ll also learn how to improve your budget to make progress toward your financial goals and uncover easy ways to save money.

Keep in mind that budgets can change over time, especially after big life events. If you’ve landed a new job or added a member to your family, for example, be sure to update your budget and spending to account for that.

It can take a little time, but it feels great once you get into a budgeting and savings groove. That can be the perfect opportunity to set a stretch goal—a high savings target that keeps you motivated.

For example, you may decide you want to save $12,000 this year for a down payment on a house. That may sound scary, but you could break it down into monthly amounts of $1,000. Go even further and think of it as $500 per bimonthly paycheck. Suddenly, that challenge begins to feel within reach.

“Even if you come up short—let’s say you only save $8,000 this year—well, you know what? You did a great job,” Johnson says. “You didn’t quite reach your stretch goal, but it pushed you to save even more than you would have otherwise with a more achievable goal.”

If you’re looking for a stretch goal, Johnson recommends building up an emergency fund to cover unexpected costs that you didn’t account for in your budget. As he learned the hard way, it’s challenging to meet your savings goals if an unexpected expense comes up—like the time his car broke down on the way home from vacation.

When you’re considering the best ways to save money, don’t overlook the power of multiple savings accounts.

Start by opening a new savings account just for your stretch goal. This money-saving hack has two main benefits:

• It will help you stay focused. You’ll be less likely to tap into your savings account when it’s dedicated to your specific stretch goal. That’s because a separate “off-limits” account can help you create a mental barrier between your accounts.

• It will help you track your progress. You won’t have to separate your savings to measure how close you are to your stretch goal. Plus, seeing this account grow can help motivate you to achieve your goal.

Many people have more than one long-term goal they want to save for. As you build up your savings, you can identify other financial goals that deserve their own dedicated accounts. One way you can do this is by growing your money with the Capital One 360 Performance Savings account, featuring one of the nation’s top savings rates.

Automating your savings is another easy way to save money. Setting up automatic savings is a straightforward way to move money from your Capital One checking account into your savings without having to think about it.

Take a look at your budget to see how much you’re planning to save from each paycheck. Then, schedule an automatic transfer from your checking account to your savings account each time you get paid.

“That’s going to be an easy way to start building your savings,” Johnson says. “Once you set up the automatic transfer, it just does it for you. So, you don’t even really have to think about it.”

You’ll be more likely to stick with your savings plan when it’s automated, he adds.

Saving is a numbers game that you can win. Instead of transferring a large amount of money into your savings account once or twice a year, make saving a regular habit with smaller, more frequent deposits.

You could make deposits into your savings account daily, weekly, monthly or quarterly, for example. This way, you can still hit your biggest savings goals without feeling the weight of large withdrawals from your checking account. Need to save $500 in a month? Put away $125 each week. Want to hit an annual savings goal of $1,000? Run the math, and that’s roughly $83 per month.

No matter how much or how often you save, the trick is to stick to a schedule. With this money-saving tip, you’ll see your savings steadily increase over time.

Paying attention to interest rates can mean big savings. Whether rates are rising or falling, here are a few money-saving moves to keep in mind:

For some homeowners, a mortgage—the loan used to buy a home—is their biggest bill of the month.

When rates go down, refinancing your mortgage may be a smart money move, Johnson says, because it can allow you to secure a new, lower interest rate. As a result, you may be able to cut down the total amount of your mortgage payments over time and possibly shorten the term of your loan.

If this sounds like a good option for you, keep in mind that there may be fees or other costs that come with refinancing. Do your research to see if now’s the time for this money-saving hack. Even a small mortgage rate reduction can potentially save you hundreds of dollars a month in payments.

To give your savings a boost, take advantage of high interest rates. A high-interest-rate environment can benefit anyone with:

• A high-yield savings account: An account offered by a bank or credit union that typically pays a higher interest rate than other savings accounts

• A certificate of deposit (CD): A savings account that requires you to leave your money untouched for a fixed period in exchange for a guaranteed interest rate 

• A money market account: A savings account that usually offers higher interest rates than a traditional savings account and may include limited check-writing or debit card privileges

• An interest-bearing checking account: A checking account that earns interest on your balance while allowing you to make everyday transactions, such as paying bills and using a debit card

These accounts will typically provide greater returns thanks to higher rates, making for an easy way to save money every day.

If you’re looking for a money-saving hack while also freeing up space around your home, gather all the things you no longer need and put them up for sale. That might include your winter coat that no longer fits or a little-used toaster that’s taking up too much counter space.

Online marketplaces on social media are a great way to get the word out, so snap some pictures and post your items for sale. You could also try a local thrift shop or used goods store. While this easy way to save money may take up some of your free time, you can use the extra earnings to help fund your stretch goal.

This easy way to save money every day can go along with any of the tips listed above.

Start small by skipping any nonessential expenses for a day. Then, as you get more comfortable, keep your no-spend challenge going for two days—or even a full week. This may take some getting used to, so allow yourself a few small exceptions. (And remember that you can still spend money on essential expenses like rent and groceries.)

Trying a no-spend challenge will help you gain an appreciation for saving and balancing your needs with your wants.

Even if you are focused on saving money, take a second to think about your financial future. Whether you’re imagining the relief of paying off your student loans or the relaxation that comes from a weeklong tropical vacation, these images can keep you committed to your savings goals.

Take it one step further by creating a financial vision board to hang in your bedroom or office. This collection of inspirational images is a motivational money-saving hack. Every time you look at your vision board, it will remind you of your financial goals and help keep you focused as you work to achieve them.

How do you find the best ways to save money? It will come down to what works for your situation and unique savings goals. As you try out these 11 ways to save money, keep the savings strategies that work for you and move on from the ones that don’t. 

Once you find the best ways to save money for you, practice them until they become habits that set you up for long-term savings success.

Remember these key takeaways:

• Saving money starts with a plan. A realistic budget and regular spending check-ins can help you take control of your finances and identify more opportunities to save. 

• Consistency matters more than the amount. Small, recurring savings can add up over time and help you reach your financial goals. 

• Choose strategies that fit your lifestyle. The best way to save money is to build habits you can stick with, whether that’s setting savings goals, cutting back on spending or earning more from your savings.

Now that you have these 11 money-saving habits at your fingertips, you can take advantage of opening a 360 Checking or 360 Performance Savings account online in about 5 minutes.