50 Easy Money-Saving Tips for 2024
Photo by Katherine McCormack on Unsplash.
Reading time: 9 minutes
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Introduction
Before jumping into the tips, let's consider the potential of saving an extra $100 through one of the hacks discussed below. Investing this amount in the stock market over time can yield significant returns–$100 per month could grow to around $100,000 after 30 years or $250,000 after 40 years. However, by implementing several of the ideas below, I am confident you can save much more. Don't waste your hard-earned money; honor the effort it took to earn it. Your future self will thank you.
Simple strategies to save money!
A) GENERAL
1) Cancel unused subscriptions.
Music streaming, video games, magazines and newspapers, fitness and wellness, software and productivity tools, streaming services, you name it. We are completely flooded in subscriptions. Be honest with yourself: how much free time do you really have? Take a hard look at all your subscriptions and decide which ones you are truly getting your money’s worth and cancel the rest.
2) Pretend to cancel subscriptions to get better deals.
I recently got a 50% reduction to renew my annual Headspace subscription and it literally cost three clicks of my time. Similarly, I also got 33% off a magazine subscription after 10 minutes in a chat box. Generally, when beginning a subscription, set yourself a calendar reminder a few days before it's due to expire. This allows you to consider whether you'd like to cancel or employ the "pretend to cancel" tactic.
3) Regularly shop around for better service providers.
Once per year, at a pre-defined date, sit down with the information of your insurance, utilities, internet, phone, etc. providers. There are always new competitors offering better deals for the same service - don’t leave any money on the table.
4) Shop at thrift stores.
Shop at thrift stores (or their online equivalents) for clothing and household items, including furniture. The depreciation cost of most products is staggering, it is not uncommon to see 50% off or more on second hand products that are as good as new. Pride yourself on being more environmentally-friendly and appreciate that the product has a history and enjoyed multiple uses. In my area, eBay and Vinted are popular choices, while local flea markets provide unexpectedly enjoyable experiences with live music and a great atmosphere. Frankly, it is normally a much better experience overall than just going to an indoor mall.
5) Use discount apps, coupons, and price compare.
Before making purchases, especially for food and household supply items.
B) BANKING & FINANCES
6) Implement automatic savings through a “pay yourself first budget”.
Implementing a pay yourself first budget ensures prioritizing savings before spending at the very beginning of the month. It fosters good savings habits and helps to keep a consistent savings rate, the single most important factor for working towards financial independence.
7) Avoid investing in actively-managed funds.
Acknowledge that for most retail investors, the odds are stacked up against you - it is statistically very unlikely that you will beat the market after fees. Passive investing is the best strategy for the vast majority of retail investors; invest regularly by dollar-cost averaging into internationally-diversified low-cost index funds or ETFs that track them. This decision is likely one of the ones that will make the largest difference for your retirement portfolio over the long run.
8) Avoid high expense ratios.
Be very careful with the fees that investment funds charge. You should be very skeptical of anything advertizing annual fees over 0.1% (more common is 0.04% or 0.07%).
9) File your tax returns.
Although this depends obviously on where you live, in many countries you can get a lot of money back by filing a tax return.
10) Consult a tax advisor.
For big ticket items, it is always a good idea to hire a tax advisor. Don’t try to save money on this. In the end a good tax advisor will save money for you. Remember: penny wise, pound foolish.
11) Track your spending.
You can’t manage what you can’t measure. Track your expenses by using 1 or 2 hours of your time at the end of the month. Tracking your spending allows you to be more mindful of your finances and to distinguish wants versus needs.
12) Avoid unnecessary insurance.
This deserves a separate post, but generally avoid insurances for small items like your phone and other gadgets. However, you absolutely do need health insurance, life insurance (if you have a family), occupational disability insurance (very often overlooked!), and liability insurance.
13) Watch our for bank account fees and interest rates.
Compare what different banks offer; don’t throw away money by paying monthly account or credit card fees if other banks are offering a comparable service for free. If you are sitting on a sizeable amount of cash that you intend to use in the short term, compare what the bank’s interest rates are for their money market accounts. As I write this, the interest rates offered by banks vary wildly: don’t leave money on the table.
14) Avoid late fees.
Paying late fees of bills we forget about is not so uncommon. Have a system in place instead: either pay the bill on the same day or file it in a special location and set up immediately a calendar reminder for when you should pay it.
15) Avoid ATM fees.
It is 2024; if your bank is still charging you unreasonable fees at ATMs, particularly when traveling abroad, it might be a good time to consider changing to another bank.
C) TRANSPORT
16) Use the bike.
We recently wrote a blog post on the real cost of car ownership and on the opportunity cost of owning a car throughout your entire working career. It is much more than you think. If you live in a big city or in a country with good public transport, owning a car is a big thing to reconsider. Drop your car, lead a less stressful and healthier life, and reap the financial benefits.
17) Use car sharing instead.
Once the previous point is in place, in most cities you have excellent car-sharing opportunities. I rent cars and vans nearly every month (in many cases weekly) and still pay a small fraction of what I would by owning a car.
18) Plan you errands smartly.
It drives me mad when I see my parents run errands erratically each day, with no attempt to consider organizing things on a weekly scale. If you own a car, it doesn’t mean you need to do two small trips every single day. Bundle the trips together instead and save yourself time and money.
D) ENERGY
19) Bundle up in winter.
Unless you enjoy wasting hard-earned money, there is no reason for wearing t-shirts around the house in winter. Bundling up in winter is cozy.
20) Turn off/down the heat.
Get in the habit of turning off/down the heat and of closing the doors of the rooms you are not using.
21) Ventilate rooms regularly.
In winter, the humidity collects in the room, reducing substantially your energy efficiency. Air the rooms at least once per day for 5 to 10 minutes (better twice per day).
22) Turn off the lights.
Get into the habit of turning off the lights of the rooms as you exit them.
23) Change your lightbulbs.
Be sure to change your lightbulbs to the most energy efficient ones you can find.
24) Take cold showers / ice baths.
This has gotten very trendy, I know. But for good reason. Besides saving substantially on water and energy you can experience some of the following health benefits: enhanced immunity, reduced inflammation, better metabolism, improved mental health, improved circulation, increased energy and alertness, better sleep, reduced stress, increased testosterone levels, enhanced mental resilience, longevity benefits… Start out slowly by aiming to use cold water in the last 2-3 minutes of your shower. Can you think of any other activity in life where you get so many benefits for three minutes of your time? For motivation and to learn more about the benefits, you can follow Andrew Huberman for the latest science on cold exposure.
E) FOOD.
Check out our top 20 money-saving food hacks in detail here.
25) Avoid coffee to go.
Here it helps to ask ourselves: is it a habit or a pleasure? Do you really enjoy walking fast with a coffee mug in your hand or is it some habit you picked up from a film? You are paying the price for sitting down and enjoying the nice atmosphere of the coffee shop, so why not do just that? If you enjoy walking fast with coffee, at least bring your coffee from home!
26) Watch out with takeaways and eating out too much.
If you are a foodie and this is a hobby for you, by all means go ahead. But, for many others, ask yourself again - pleasure or habit? Indulging in occasional outings can be delightful, but if done too frequently, it's likely that you're succumbing to the trap of hedonic adaptation.If you want to save some money, hosting potluck dinners can be a great alternative.
27) Engage in meal planning and batch cooking.
Organizing yourself on a weekly basis will help you avoid buying and wasting too much food. It will also reduce impulse buying at the grocery store.
28) Freeze meals for a later use.
This may seem obvious, but never let a good meal go to waste.
29) Choose your grocery store wisely.
Remember what we laid out at the beginning of the post: every $100 you save per month is over $100K after 30 years. Is the fancier store really worth it? Is it not possible to get good, healthy ingredients too at the cheaper store? In some cases, we may be talking about several hundred dollars of difference here.
30) Shop for food only once per week.
Force yourself to plan and save money in transport and by reducing food waste and impulse buying.
31) Buy generic brands instead of name brands.
For a lot of food types the difference is minimal.
32) Buy seasonal.
Avoid strawberries in January. Familiarize yourself with a seasonal calendar to have a good overview of what is in season in your country.
33) Lean towards plant-based meals and cooking from scratch.
Triple win - good for your health, good for the environment, good for your wallet.
34) Try out our food waste inventory challenge.
You can’t manage what you can’t measure. This simple exercise may be painful at first, but trust me, it is worth it! Place a blank sheet of paper on the front of your fridge at the beginning of the month. Each time you throw away a food item note it down along with its estimated price, e.g., one yogurt, 25 cents. Add up all the items at the end of the month and multiply times 12. Voila! There is your estimated annual food waste bill. The initial shock may be good news as it will stir you permanently into avoiding food waste.
35) Avoid sugary drinks.
Give your body the very best it deserves: water. Aim for 8-10 glasses per day.
36) Bring food with you.
Get in the habit of carrying some food around with you - water, fruit, a small healthy snack. You never know when you will be hungry.
F) HEALTH
37) Consider your gym membership.
Analogous to the advice on eating out, if the gym is your passion go ahead and skip to the next money-saving tip. But if you struggle to go to the gym regularly, maybe you can find cheaper ways to staying in shape.
38) Quit and/or reduce smoking and alcohol.
I think it is pretty obvious, but let’s do some quick math on the smoking example. A pack a day will set you back roughly $250 per month or $3,000 per year in the US. Investing this money instead over the course of a 40-year career would render you a portfolio in the ballpark of $600,000. That is quite an opportunity cost for you and your loved ones for ruining your health.
G) TRAVEL
39) Travel during off-peak seasons.
Find lower airfare and accommodation costs.
40) Use travel comparison websites.
Find the best deals on flights and accommodations.
41) Travel with friends or family.
If possible, try to split costs.
42) Stay with friends or family
If possible, try to avoid booking hotels.
H) MISCELLANEOUS
43) Plan presents in advance.
Acquire presents throughout the year when you see good deals. Avoid last minute, compulsive shopping, which comes out more expensive.
44) Find inexpensive presents that add value.
Have you ever heard of someone complain after receiving a good book? Normally, more thought goes into choosing the right book for someone than just randomly picking up a scarf or a purse at the mall.
45) Use the library.
I personally like to own the book to make notes and be able to revisit its best parts. More importantly, I like how it looks in the background - it gives our home a more cozy feeling. But for those that don’t care, remember the library.
46) Avoid lottery tickets.
Americans spend about $1,000 per year on lottery tickets. The opportunity cost of investing this money over a 40-year period is around $200,000.
47) Rent out tools and equipment.
Try to avoid single use items.
48) Adopt mentality of learning to fix things yourself.
This one is a big money saver. It also feels good to learn new skills and take care of your belongings.
49) Sell unused or unwanted items online or at garage sales.
50) Practice mindful spending.
Before making a purchase, especially on non-essential items, pause and ask yourself whether you truly need it or if it's just a want. Consider even waiting 24 hours before making impulse purchases to see if you still want or need the item.
Enjoyed this post? Don’t miss our insights on frugality from Vicky Robin’s classic ‘Your Money or Your Life’ or our post on 20 simple food hacks to cut the grocery bill in 2024.
