As we get closer to 2025, financial health is more important than ever. A YouGov poll shows that almost two-fifths of people who make New Year’s resolutions want to save more and spend less.
With rising prices and inflation, it may seem impossible to reach your financial goals, but it doesn’t have to be.
This guide combines 12 useful money-saving tips for people in the United States. By using these tips, you can save more, cut costs, and have a better financial future.
1. Automate Your Finances for Stress-Free Savings
Automating your finances takes the guesswork out of saving. Set up automatic transfers from your checking account to a savings account.
Many banks allow you to customize the amount and frequency, ensuring consistent growth of your savings.
Another popular method is rounding up your purchases to the nearest dollar. For instance, if you spend $3.70 on coffee, the remaining $0.30 is automatically transferred to your savings.
Apps like Chime and Acorns make this seamless, helping users save an average of $120 annually.
Additionally, consider a digital cash envelope system by creating multiple accounts for various expenses like rent, groceries, and leisure. This system helps you allocate funds effectively and prevents overspending.
2. Track and Categorize Non-Essential Spending
The first thing you can do to improve your buying habits is to become more aware of them. Look over your bank statements and put expenses like eating out, shopping, and subscriptions into groups that aren’t necessary.
Tools like Mint or Monzo can make this process easier by automatically keeping track of expenses and sending you monthly reports on your spending.
You can put money into savings or paying off debt by figuring out where you spend too much. For example, cutting back on dining out twice a month could save you $100 or more annually.
3. Leverage Loyalty Programs and Discounts
Over time, loyalty schemes can save you a lot of money. People who shop at food stores can save up to 10% with rewards cards like Kroger Plus or Target’s Circle.
In the same way, digital coupon sites like Honey and Rakuten make it easy to find deals.
Keep an eye on price drops and holiday sales for big purchases. There are great chances to get deals during events like Amazon Prime Day and Black Friday.
If you plan your shopping around these sales, you can save a lot of money every year.
4. Create Savings Goals for Special Occasions
Unexpected costs during trips, holidays, or birthdays can throw off your budget. Set aside money for these kinds of things ahead of time to avoid this.
Most banking apps, like Ally or Capital One 360, let users set up more than one place to save money.
By setting up automatic contributions to these accounts, you can avoid using your emergency fund to pay for big costs.
5. Adopt a Cash-Based Spending System
Using cash for everyday purchases can help you stop spending too much. When you pay with cash, you can see your money going down, which makes you more careful about what you buy.
For example, set aside money at the beginning of each month for things like groceries, fun, and eating out.
Researchers have found that when people use cash instead of credit cards, they spend 20% less.
6. Haggle and Compare Service Providers
Reviewing your energy, internet, and insurance bills on a regular basis can help you find ways to save money. Use sites like NerdWallet or The Zebra to compare prices and find cheaper options.
You can talk to your present provider about matching a better deal if you find one. They will likely do this to keep your business.
7. Opt for Generic Brands
A lot of the time, store brands are just as good as name brands, but they cost a lot less. Great Value (Walmart) and Simple Truth (Kroger) are two brands that give high quality without charging a lot.
For instance, if you choose generic peanut butter over brand-name peanut butter, you might save $50 a year, based on how much you use.
8. Cut Unnecessary Subscriptions
Costs for things like gym memberships, streaming services, and monthly boxes can add up fast. Check your accounts and get rid of the ones you don’t use often.
For example, if you pay for Netflix and Hulu but only use one, getting rid of the other could save you $120 a year.
9. Be an Intentional Shopper
Buying things on a whim can really mess up your spending. Make shopping plans and stick to them to avoid this.
“Do I really need this?” should be your first question before you buy. This careful way of doing things saves money and cuts down on waste.
Plan your meals ahead of time so you don’t buy things you don’t need when you go food shopping. You can save $20 to $50 a month by making a weekly meal plan with easy-to-use foods like chicken, rice, and pasta.
10. Utilize High-Interest Savings Accounts
Pick a savings account that pays a lot of interest to make your money work for you. Interest rates at online banks like Ally and Discover are much higher than at regular banks.
For long-term progress, you might also want to think about certificates of deposit (CDs) or Individual Retirement Accounts (IRAs).
11. Avoid Buy Now, Pay Later (BNPL) Services
It can be tempting to use BNPL services like Klarna or Afterpay, but people often spend more than they mean to. You can hurt your credit score and get charged a lot of money if you miss a payment.
Instead, wait until you have enough money to buy something or look into credit cards with no interest.
12. Invest in Long-Term Financial Tools
Last but not least, getting planning apps or working with a financial advisor can help you stay on track. You Need A Budget (YNAB) apps teach people how to be responsible with their money and make sure that every dollar has a purpose.
Conclusion: Small Changes, Big Impact
In 2025, you don’t have to make big changes to your life to save money. If you use these 12 hacks, you can build a strong financial base.
Check in on your progress often, enjoy small wins, and don’t give up. Don’t forget that getting out of debt is a run, not a sprint.
Don’t spend too much at first, and your income will grow over time.