How to save money fast

Review your spending

The first step to saving money faster is by looking at how you spent it in previous months.

Check with your banks and credit card companies to see if they offer tracking tools that will show you a breakdown of your expenses.

If you have multiple bank accounts and credit cards, then a money management app might be a better option. There are a varity of choices, and many of the most popular apps and services offer a free plan, including one of our favorites — Empower.

There are also some really great paid options like YNAB (You Need a Budget) that have unique features. Of course, if you’re trying to save money fast, consider sticking to the free ones for now.

If most of your income and expenses are paid in cash, you may have to do things the old-fashioned way: with a notebook or spreadsheet. Try to sit down and write out what your actual bills are and then what you want your budget to be on discretionary expenses.

Some people who use cash — or need help with discipline — prefer to use the envelope method, also known as cash stuffing. You grab an envelope for every category of expense in your budget and stuff it with cash equal to the amount you want to spend. If you plan to spend $40 on clothes this month, then a pair of $20 bills goes into the “clothes” envelope. Once the money’s gone, that’s it.

More: Calculate your savings goals

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Cut your expenses

Now that you have a clear picture of where your money is going, you may already see opportunities where you can cut back and save money. How ruthless you are will depend on how much money you need to save and how quickly you need it.

1. Discretionary expenses

Discretionary expenses are often the easiest to cut, but don’t make yourself miserable unless you have to. The primary goal is to save money fast, but the secondary goal should be to build a sustainable savings habit so you never have to make sudden sacrifices in the future.

Prioritize a few little treats that bring you joy well worth their cost. If getting a $3 latte brings you far more joy than $3 spent elsewhere, get the latte.

But getting a coffee every day, plus a breakfast sandwich, plus lunch at work is $20 a day, $100 a week, $400 a month. Luxuries should feel like luxuries, and if you’re enjoying several every day, you’re not treating yourself — you just have expensive habits.

Consider taking cheaper alternatives to the treats you’re giving yourself. If you order takeout because you hate cooking, consider buying nicer ready-made meals at the grocery store. Those can be pricey in their own right, but if it prevents you from ordering Chipotle off DoorDash and paying for delivery and tip, you’re still saving.

2. Fixed expenses

Slimming down your fixed expenses takes some research and a willingness to shake things up, but it doesn't have to be a painful process.

Cell phone: For example, if you’re using T-Mobile for your cell phone plan, consider switching to their cheaper counterpart Mint Mobile, which uses the same network.

Insurance: In the same way, shop around for your car insurance and home insurance and see if you can find similar coverage for a better price. Different companies use different formulas to set their rates.

Internet: Call your internet provider saying you’re planning to switch and see if you can get a retention offer.

Credit cards: And if you’re carrying a hefty balance on a credit card, consider signing up for a balance transfer card with a promotional 0% APR. You might pay a fee for the transfer, but you’ll get a reprieve from interest for a while.

Just make sure you focus on paying it off as quickly as you can, so you don’t end up in the same place at the end of the promotional APR period.

Increase your income

It’s common to put all of your effort into lowering your expenses without ever considering the other half of the equation: bringing in more money. With inflation rising, increasing your income may be necessary to get ahead.

If it's an option, see if you can work overtime at your job. Moreover, try to negotiate for a raise — you can’t expect to get one if you don’t ask. And if that doesn’t work, look into picking up a side-hustle that fits your schedule and your talents.

Selling extra items in your home on Facebook Marketplace or eBay could be a quick way to put cash in your bank account.

And you can take that logic one step further if you have a spare room in your home. Consider furnishing it and listing it on Airbnb, renting it to a travel nurse or even getting a long-term roommate.