What Strategies Do Individuals Use to Save Money Effectively?
In the quest for financial stability, we’ve gathered personal savings strategies from a diverse group of professionals, including managing partners and CEOs. From avoiding loans on depreciating assets to maintaining a strict budget, explore the fifteen distinct tips that have significantly shaped their financial journeys.
- Avoid Loans for Depreciating Assets
- Automate Your Savings
- Pay Off Credit Card Debt Monthly
- Make Extra Loan Payments
- Conduct a Subscription Audit
- Adopt a “Pay Yourself First” Approach
- Embrace Couponing for Savings
- Start Small With Consistent Saving
- Prioritize High-Interest Debt Repayment
- Implement a Zero-Based Budget
- Apply the 48-Hour Impulse Buy Rule
- Establish an Emergency Fund
- Cook at Home and Bulk Shop
- Distinguish Needs From Wants
- Maintain a Strict Budget
Avoid Loans for Depreciating Assets
Avoiding loans for depreciating assets and things that lose value quickly has helped me save a lot of money in the long run. If you’re buying a car, for instance, it starts losing value as soon as you drive it off the lot. If you take out a loan to buy it, you’re not just paying for the car—you’re also paying interest on something that’s constantly going down in value. This means you could end up owing more on the car than it’s actually worth, which isn’t a great financial position to be in.
Instead, I save up and pay cash for cars and other things that depreciate. This way, I don’t have to worry about monthly loan payments or interest charges. Plus, it feels great knowing I fully own my car and won’t be stuck with a loan if its value drops. This approach has really helped me avoid unnecessary debt, making my financial situation much more stable and less stressful.
Paul Carlson, Managing Partner, Law Firm Velocity
Automate Your Savings
Automating my savings has been a huge help when it comes to meeting my savings goals, and it’s great because it’s so simple, but it actually covers several different bases in terms of building good money habits.
First of all, it allows you to really nail down a savings schedule so that you can more accurately plan ahead and do a better job of meeting whatever savings goal you’ve got. Second, it can help take a bit of mental weight off, since you know your savings are going to be squared off every time you get paid—having just a little bit less to think about can be crucial when we’re otherwise feeling stressed.
Lastly, automating your savings can also help you reduce your expenses and cut out impulse spending. Rather than letting it come down to a test of your will each month, you can automate things and totally eliminate any chance of letting an impulse purchase mess up your attempts to save money.
Erika Kullberg, Attorney, Money Expert, and Founder, Erika.com
Pay Off Credit Card Debt Monthly
One tip that’s really helped me save money is making sure my credit card debt is always paid off. I always make sure to clear it every month.
When I first started working, I quickly saw how fast interest on unpaid credit card balances could pile up. It felt like throwing money away. So, I made it a habit to pay off my credit card balance every month. This saved me a ton of interest and boosted my credit score in no time.
Having no credit card debt means I have more money available for saving and investing. It’s such a relief not to have those “tiny” monthly payments hanging over my head. Instead, I can put that money toward emergency savings, retirement, or other investments that secure my financial future.
This strategy has given me greater financial stability and peace of mind. Without the stress of credit card debt, I can handle unexpected expenses better and jump on investment opportunities when they come up. It’s like lifting a heavy weight off my shoulders, making the path to financial independence feel a lot smoother.
Managing credit card debt is a simple yet powerful way to improve your financial health.
Holly Andrews, Managing Director, KIS Finance
Make Extra Loan Payments
Over the past decade, I’ve made a habit of making extra payments on my loans and bills whenever possible. Even small extra payments can make a big difference. For example, if I get a tax refund or a bonus, I put that money towards my loans right away. Paying more than the minimum each month reduces the amount of interest I pay over time. This cuts down on the total cost of the loan and shortens the repayment period.
By reducing my debt faster, I’ve been able to save more money in the long run and avoid the stress that comes with carrying debt for many years. It’s allowed me to build up my savings and invest in other areas of my life. Plus, the sense of control and progress I get from watching my loan balance decrease more quickly keeps me very motivated.
Mike Roberts, Co-Founder, City Creek Mortgage
Conduct a Subscription Audit
As the founder of Leverage and a finance expert, one tip that’s really helped me save money is doing a “subscription audit.”
I noticed I had a bunch of subscriptions—like streaming services, software, and magazines—that I wasn’t really using. So, I decided to make a list of everything I was subscribed to, see how often I used each one, and cancel anything that wasn’t really worth it.
For example, I realized I was paying for three different streaming services but only used one regularly. Canceling the other two saved me about $30 a month. I also found some work-related software subscriptions that I hadn’t used in months, which saved me another $50 a month when I canceled them.
Altogether, this simple audit saved me around $80 a month—almost $1,000 a year. I put those savings into a high-yield savings account to let the money grow.
This strategy has made a big difference for me. It freed up extra cash and made me more mindful of my spending. Now, I regularly review my subscriptions every few months to make sure I’m only paying for what I actually use.
Rhett Stubbendeck, CEO & Co-Founder, Leverage Planning
Adopt a ‘Pay Yourself First’ Approach
One tactic that has really helped me over the years to save money is “paying myself first.” Though it sounds simple, when used regularly, this is quite powerful.
When I say “paying myself first,” I mean that every time I get money—from a bonus, a payback, or any other source—I immediately set aside a predefined percentage into a separate savings or investing account before I even think about using it. Depending on your financial objectives and responsibilities, this might be as low as 10% or as much as 30%.
Making this work requires automation most of all. I configured automated transfers to free me from thinking about it every time. In this sense, the savings occur free from any desire to spend the money elsewhere or work required. These little payments, taken over time, pile up really well to form a sizable nest egg.
Russell Gous, Editor, Money Transfers
Embrace Couponing for Savings
I’ve been a couponing enthusiast for over ten years, starting with paper coupons I would collect from newspapers and magazines. Now, I use online coupon platforms to find the best deals. I stack coupons by combining different types of discounts, like manufacturer coupons and store coupons, on the same item. This way, I save a lot on things like household items, kitchen essentials, appliances, and cleaning supplies.
Even though the savings might seem small at first, they add up over time. This makes a big difference in managing monthly expenses and feeling more secure financially. I’ve reached a point where I can save hundreds of dollars on my monthly bills, which is a pretty cool milestone and worth all the research I put in.
Gary Gray, CEO, CouponChief.com
Start Small With Consistent Saving
Prioritize saving consistently, even in small amounts. Even setting aside $20 per paycheck adds up over time!
The real turning point for me personally came when I learned about investing. While it might seem intimidating, there are tons of resources for beginners. Once I understood the basics, I started putting my saved money into a low-risk investment account. Seeing my money grow, even a little, motivated me to save even more.
It’s not just about having a safety net anymore. Thanks to consistent saving and smart investing, I’m now working towards bigger goals, like traveling and investing in my business. It’s an amazing feeling to be in control of your finances and have something to look forward to.
So, the key takeaway is this: start small, be consistent, and don’t be afraid to learn about investing. It might surprise you how quickly your savings can add up and make a real difference in your financial well-being.
Chris Vernon, Founding Partner, Vernon Litigation Group
Prioritize High-Interest Debt Repayment
Paying off high-interest debt has been incredibly effective for me in saving money. By prioritizing these debts, I managed to stop losing a large portion of my income to interest payments each month. Once I cleared the high-interest debt, I had more money available to put into savings and investments.
This shift significantly boosted my financial security and gave me a sense of control over my finances. Watching my savings grow instead of seeing money go towards interest was motivating and encouraging. Focusing on paying off high-interest debt first has greatly improved my financial situation and helped me achieve my financial goals more quickly.
Brian Quigley, Founder & Finance Expert, Beacon Lending
Implement a Zero-Based Budget
One of the most effective strategies I have employed to save money is implementing a zero-based budget. This budgeting method involves allocating every dollar of my income to specific expenses, savings, or investments, ensuring that my income minus my expenses equals zero.
By meticulously tracking my expenditures and planning my finances down to the last dollar, I have been able to cut unnecessary costs and optimize my spending. This approach not only inculcates financial discipline but also provides a clear picture of where my money is going, enabling me to identify areas for potential savings. As a result, I have been able to boost my savings rate significantly, build a robust emergency fund, and invest more consistently toward my financial goals, leading to greater financial stability and peace of mind.
Rohit Vedantwar, Co-founder – Director, Supramind.com
Apply the 48-Hour Impulse Buy Rule
I use the 48-hour rule to save money. Ever heard of the saying “think before you act?” It’s a crucial lesson in life, and it really applies to handling your personal finances too! If you’re looking for ways to save, try applying the 48-hour rule to every impulse buy.
What’s the 48-hour rule? It’s pretty straightforward: if you want to buy something that isn’t a necessity, think it over for 48 hours. Do you really need that new makeup palette? Is that new phone model worth it?
This pause gives me time to avoid impulse buying. “Think before you act” is my motto, especially when it comes to saving money.
Alex LaDouceur, Co-Founder, Webineering
Establish an Emergency Fund
Setting up an emergency fund has been one of the smartest financial moves I’ve ever made. It acts as a buffer against life’s unexpected twists and turns. Imagine having a sudden medical expense or urgent home repair. Rather than stressing and reaching for a credit card, I’ve got a safety net that covers these surprises. This strategy keeps me away from high-interest debt and the spiral that often follows.
Having this fund isn’t just about financial stability; it’s about peace of mind. Knowing that there’s a cushion to fall back on allows me to focus on other financial goals without constant worry. This security has been invaluable, helping me make grounded decisions even when life throws a curveball. It’s a simple practice, but the impact on my financial health has been profound.
Dr. Gregory Gasic, Co-Founder, VMeDx
Cook at Home and Bulk Shop
It doesn’t matter how much money you make. What matters is whether you know how to save that money. I believe that everyone is capable of doing so. The main thing is to have enough willpower and to arm yourself with a few strategies.
One thing I stopped doing was eating out and ordering food for home delivery. We are completely oblivious to spending money on unnecessary food, but it is this waste that accounts for up to 15% of our budget. Eating street food, buying buns, and drinking lemonade makes your body look unhealthy and your wallet empty. Once I started preparing meals at home, it became one of my biggest hobbies, so I won twice.
Try to minimize your daily trips to small stores located near your home. Prices there are usually higher than in hypermarkets, for example. It is better to buy goods with a long shelf-life, like tea and coffee, sugar, washing powder, and shampoo, in large quantities with discounts.
Another way to save money is to shop online. The positive aspect of online shopping is that you see the total price right away, not at the very end at the checkout, which can be very sobering. Because in the store, your eyes fall on a lot of products, and marketing specialists take advantage of that. When shopping online, you only visit certain sections of the website according to your list, so there is less temptation to put unplanned items in your cart and spend more than you intended.
By minimizing my spending on food and other goods, I was able to gradually increase the amount of my savings, in addition to eating healthier than I used to.
Jacek Żmudziński, SEO Team Lead, MakoLab
Distinguish Needs From Wants
The truth is, sometimes it can be genuinely difficult to tell the difference between those things that are wants and those that are genuine needs, especially after one has lived a financially indulgent lifestyle for a long time. One simple tip that has proven highly effective in my financial journey of finding the balance between my financial needs and wants is putting these desires on a scale and weighing them in terms of durability and how long-lasting the satisfaction they promise to offer would be for me.
Recognizing that my needs are non-negotiable because they offer more value and satisfaction than the immediate thrill and joy that comes from possessing something new and making a new purchase has positively influenced my financial situation. By becoming less indulgent in spending, not only have I embraced frugality by adopting a minimalist lifestyle, but at the end of the day, I am also left with more funds to channel towards those things that actually matter—those that align with my financial goals.
Cajetan Okwor, General Manager, Topratedlaw
Maintain a Strict Budget
One personal tip that has worked wonders for me in saving money is to have a really strict budget wherein every single expense is accounted for. Although it may sound pretty simple, indeed quite boring too—it has made a significant difference in my financial health. I started by categorizing my spending and setting limits for each category: groceries, entertainment, dining out, miscellaneous expenses, and so forth. The budgeting application lets me easily track where my money is going and make correspondingly better changes.
This helped me not only to stop spending on unwanted things but also gave me an opportunity to put more money into my savings and investments. I started seeing a bigger balance in my savings account little by little and was able to invest in streams of passive income. This disciplined approach to my finances has brought me greater financial stability and peace of mind by knowing that I am prepared for every eventuality with expenses, in terms of keeping on track for long-term goals.
Andrii Latenko, SEO Expert & LinkBuilder, HARO Links SEO Agency
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