How to Save More Money in 2025

Saving money while juggling day-to-day expenses can feel overwhelming. Whether you're looking to build an emergency fund or just want some extra breathing room between paychecks, you don't need complicated strategies — you need realistic goals, practical tips, and simple ways to free up cash for your savings account. 

How much money should I save? 

Everyone's financial situation is different, but here's the truth: any amount you can save makes a difference. Even setting aside $50 or $100 can provide that extra cushion when unexpected expenses pop up. 

A practical approach 

Make it your goal to save enough to cover the period between paydays. 

For example, if you’re paid biweekly, aim to save enough to cover living expenses for two weeks. If you’re paid monthly, save enough for one month. Focus on building a cushion that can cover necessities like rent/mortgage, utilities, and groceries if you unexpectedly miss work, lose your job, or have your hours cut. 

I know that sounds like a lot, and saving an entire paycheck isn’t realistic for everyone. But even saving a small amount can mean the difference between paying this month’s electric bill or borrowing money to keep the lights on. 

10 easy ways to save 

Ready to start saving? These practical tips can help you build your savings without feeling overwhelmed. Remember, every dollar counts! 

1. Track your expenses to save money 

Look at your monthly bill statements to get an idea of where you’re spending money. Then, determine if you can cut some of these costs and put that extra money toward your savings. Buying that daily morning iced coffee or eating takeout a couple times a week might not be necessary expenses! 

2. Make a budget to save money 

Creating a budget is a great way to keep track of your spending and contribute more money to your savings account, and there are several budgeting methods to choose from. 

With the zero-sum budget, you assign a “job” for every dollar of your monthly after-tax income. This is one of the easiest ways to save money because it treats your savings just like your expenses. 

Another option is the "pay yourself first budget," which involves putting a percentage of your income toward your savings every time you get paid. This method can allow you to prioritize your savings efforts. 

The 50/30/20 budget may also help, as it encourages you to put 20% of your income into savings or towards debt repayment. 

3. Pay down your debt to save money 

Once you get out of debt, you’ll have more money to allocate toward savings. The debt snowball method is a smart strategy for saving money if you’d like to stay motivated throughout your journey to becoming debt-free. 

Here's how it works: 

• Make a list of all your debts.
• Pay off your smallest debts first.
• Roll the amount you used to pay those first debts into paying off your larger ones.
• Continue this process until all your debts are gone. 

4. Set short-term and long-term savings goals 

Think about your financial goals. If you’d like to go on vacation in the next six months, figure out how much money you’ll need to save. This is a short-term goal. 

Long-term goals, like purchasing a car, will need a more gradual approach. Try breaking this goal down into smaller, more achievable milestones to help you reach your desired amount. Maybe start at saving a minimum of $100 per week toward the purchase. 

5. Eliminate unnecessary expenses to save money 

You may be spending money on things that you don’t need or want. If you pay for a monthly gym membership but never use it, for example, get rid of this expense. That way you can use the extra money for your savings. 

Other types of unnecessary expenses you may want to eliminate include cable, streaming subscriptions, daily coffee runs, and impulse online purchases. 

6. Increase your income 

The more money you earn, the more you’ll have to contribute toward your savings. If your full-time job doesn’t pay enough for you to meet your savings goals, increase your income in other ways. 

Sell items online on places like Facebook Marketplace or pick up a side job where you drive for a ride-share company or deliver food. 

7. Carpool or take public transportation 

One easy way to cut costs is by reducing how much you spend on commuting. Gas, maintenance, parking fees, and tolls can quickly add up. But carpooling or using public transportation can help lower those expenses. 

Carpooling with coworkers, friends, or neighbors allows you to split fuel costs while also reducing wear and tear on your vehicle. Plus, you might enjoy the added benefit of socializing on your commute. 

If public transportation is available in your area, it’s often a more affordable alternative to driving. It can also save you money on parking and vehicle maintenance. 

8. Change your cellphone plan 

Many people overpay for their cellphone plans without realizing it. If you haven’t reviewed your plan in a while, you might be able to save money by switching to a lower-cost option. You might not even be using all the data you’re paying for! 

Consider switching to a smaller carrier or prepaid plan, as they often offer similar coverage at a fraction of the cost. Family or group plans can also help you cut costs by sharing expenses. 

9. Cancel those unused subscriptions 

Subscription services can be convenient, but they often go unnoticed in your budget, leading to unnecessary expenses. Many people sign up for streaming platforms, gym memberships, or app subscriptions and rarely use them. Take time to review your bank statements or subscription lists to spot any services you no longer need or use. 

10. Start a savings jar 

One of the simplest and most effective ways to start saving is by creating a savings jar. This method is low-tech but can be surprisingly motivating. 

The idea is to set aside small amounts of money regularly, whether it's spare change, a few dollars here and there, or any extra cash you come across, and deposit it into a jar or container. Over time, those small contributions add up to a nice chunk of change. 

What should I save money for? 

Saving money is important, and knowing what to save for can help you stay motivated. Whether it’s for everyday expenses, future goals, or unexpected emergencies, having a clear plan for your savings can give you financial security and peace of mind. 

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Emergency fund 

An emergency fund is one of the most important things to save for, as it provides financial security when unexpected expenses arise. Car repairs, medical bills, job loss, or urgent home fixes can happen at any time. Having money set aside ensures that you won’t have to rely on credit cards or loans to cover these costs. 

Retirement 

If you don’t want to work forever, saving money may allow you to retire someday. Depending on your employment situation, you can save for retirement through a traditional or solo 401(k) plan. You can also build your nest egg with a traditional or Roth IRA. 

Paying off debt 

By paying off debt as soon as possible, you can save on interest, improve your credit score, and relieve financial stress. The more money you save, the more you’ll have to put toward your debt, like student loans, car loans, and personal loans. 

Down payment on a house 

Homeownership is a dream for many Americans. To turn it into a reality, you’ll need to save for a down payment, which is usually a percentage of the home cost and depends on the mortgage program. You may also need to save for closing costs as well as home maintenance and repairs. 

New car 

If you save for a car down payment, you’ll be able to reduce the overall amount you have to borrow. This can put you in a stronger position at the dealership and potentially save you thousands upon thousands of dollars in interest. It’s also a good idea to save for car-related repairs that may pop up when you least expect them. 

College 

Since the cost of college continues to rise, you may want to save for your children’s college education. Ideally, you’d do so while they’re still young so that your money has time to grow and turn into a sizable amount for tuition, books, and other related expenses. To save for college, you can open a 529 plan or a Coverdell Education Savings Account (ESA). 

Start saving today 

Remember, learning how to save money isn’t just about restricting spending. It’s about gaining financial freedom and peace of mind. No matter where you are in your financial journey, taking steps to save today will set you up for a more secure and stress-free future. Start where you can, stay committed, and watch your savings grow!