I was talking with a friend last week, and he made the comment that with today’s high cost of living it’s almost impossible for him to save money and build up an emergency fund. I explained my view that saving money doesn’t always require huge lifestyle changes. Many times, small adjustments to everyday spending can add up to significant savings over time.
For some, it’s time to take intense measures. When debt becomes overpowering, things may need to get uncomfortable so real progress can occur. Downsizing a home, selling the truck that has a high monthly note, or even cutting up the credit cards. But we’re not talking about navigating debt today – the focus is saving money so that if an emergency expense does occur, there are funds set aside to cover it.
Here are a few suggestions on what you can do to keep more money in your pocket without making your life unnecessarily difficult.
Eat out less. One might argue that it’s cheaper to eat out than to buy groceries. My belief is that you can “cook smart” and prepare enough food to last several meals so you really get your money’s worth. Put that slow cooker or Insta-pot to work. If you’re going to eat out, use the discounts and deals found in restaurant apps to maximize your savings. You may be able to turn a $15 meal into a $7 or $8 purchase simply by using a coupon.
Stick to the list. Impulse purchases can quickly turn a small shopping trip into a much larger expense. Before going to the grocery store or shopping online, make a list of what you actually need. Avoid buying something simply because it’s on sale. A sale is not a savings if you wouldn’t have purchased the item otherwise. My wife frowns at me when I say, “You can save 100% by not buying it.”
Consider off-brands. Store-brand groceries, household supplies, and over-the-counter products are often less expensive than name-brand alternatives. I realize there are some products where the “value brand” version just won’t do. In our house, it’s Coca-Cola (sorry, Sam’s Cola) and Kraft Shells and Cheese. But overall, there are items where you can choose an alternative brand and you won’t really know the difference. Don’t overpay for a product’s packaging!
Price shop. For expensive items such as appliances, electronics, furniture, or tires, take a few minutes to compare prices from multiple stores. Look for sales, price-matching policies, rebates, and coupons. Online reviews can also help you determine whether a cheaper product offers similar quality to a more expensive alternative.
Negotiate your monthly bills. I’ve talked about this in one of my previous “Common Cents” columns. Many people accept their internet, cell phone, cable, and other service bills without asking whether a better price is available. Call the provider and ask about current promotions, loyalty discounts, lower-cost plans, or other ways to reduce your monthly payment. You can also compare competitors’ prices and use that information when negotiating. Even saving $20 a month on a bill adds up to $240 a year.
Cut the fluff. Streaming services, apps, memberships, and other subscriptions can quietly drain your bank account. Review your recurring charges every few months and ask yourself whether you’re actually using each service. Cancel anything that’s no longer valuable. If you want a service temporarily, consider subscribing only during the months when you plan to use it. These savings can add up fast.
Use cash-back and rewards programs. Take advantage of legitimate cash-back programs and rewards offered by stores and credit cards for purchases you were already planning to make. The important thing is to avoid buying extra items just to earn rewards. Don’t fall for it! The goal is to receive money back on necessary spending, not increase your spending. Examples of legitimate cash-back apps are Ibotta, Upside, and Fetch.
Automate your savings. Rather than trying to tuck away whatever money happens to be left at the end of the month, treat savings like another monthly bill. Set up an automatic transfer from your checking account to your savings account each payday. Even $25 or $50 per paycheck can gradually build an emergency fund. Once the automatic transfer becomes part of your routine, you’re less likely to spend that money accidentally.
In the end, saving money is about being intentional with your spending. You don’t have to eliminate every convenience or stop enjoying the things you like. By looking for discounts, avoiding unnecessary purchases, negotiating bills, and consistently setting money aside, you can make meaningful progress toward stronger finances – one small decision at a time.
Tracy L. Campbell is a partner and financial advisor at Meriwether Wealth and Planning, an independent Registered Investment Adviser (RIA) firm headquartered in downtown Minden, La. E-mail Tracy at tracy@meriwether.com. Disclaimer: This content is for general knowledge and education, not a substitute for professional advice.