15 Best Money Habits That Actually Help You Save More Every Month

Building wealth is not just about making more money; it’s also about developing good financial habits that help you save money over time. Small, regular actions can add up to significant savings, which can total thousands of dollars each year. Here are 15 money habits that successful savers use to build their financial security while enjoying their lives.

1. Automate Your Savings

The best way to save money is to make saving automatic. Set up automatic transfers from your checking account to your savings account right after you get paid. Experts suggest starting with at least 10% of your income, but even saving $25 to $50 each week can add up to $1,300 to $2,600 a year.

Modern banking apps can help with this. Features like round-up savings let you save spare change from your purchases automatically. Apps like Acorns and Qapital round up your transactions to the nearest dollar and invest the extra money, turning everyday spending into a way to build wealth.

2. Track Every Expense

To take control of your finances, you need to be aware of your spending. Successful savers use apps like Mint, YNAB (You Need A Budget), or PocketGuard to track their expenses. These apps automatically sort your spending and help you see patterns that you might miss otherwise. Research shows that people who track their spending spend 12-18% less than those who don’t. Simply writing down your purchases helps reduce impulse buys and encourages more mindful spending.

3. Follow the 50/30/20 Budget Rule

This budgeting method suggests using 50% of your after-tax income for needs, 30% for wants, and 20% for savings and paying off debt. This plan gives you flexibility while making sure you save consistently and reduce debt.

If you want to save more, try the 80/20 rule: live on 80% of your income and save 20%. This strategy helps you build wealth quickly and grow your emergency fund faster than other budgeting methods.

4. Implement the 24-Hour Purchase Rule

Before you buy anything non-essential that costs more than $50, wait 24 hours. For items that cost $200 or more, wait a week. This waiting period helps you avoid impulse buying and reduces buyer’s remorse. Create a “wish list” for things you want but don’t need right away. After the wait, you may find that you don’t want the item anymore or that you find a better option or price.

5. Always Shop with a List

When you shop for groceries or household items, always make a detailed list before you go. Stick to this list closely. Research shows that 60% of grocery purchases are unplanned, which can lead to spending 23% more than intended. Use smartphone apps to create and organize your shopping lists, and set a spending limit before you enter the store. Following this habit can save a typical household $100 to $200 each month.

6. Cook More Meals at Home

The average American household spends $3,400 each year on dining out. Cooking at home costs about 60% less than eating at restaurants and often offers better nutrition and bigger portions. Make a habit of planning meals every Sunday. During this time, decide what you will eat for the week, create shopping lists, and prepare ingredients. This will help you avoid ordering takeout on busy weeknights and cut down on food waste.

7. Maximize Cashback and Rewards Programs

Use cashback credit cards for all purchases you can pay off right away. This way, you can earn back 1-5% on your spending. Some popular cards are the Chase Freedom Unlimited, which gives 1.5% on everything, and the Citi Double Cash, which offers 2% on all purchases.

You can also combine these cards with store loyalty programs and apps like Rakuten, Ibotta, and Fetch Rewards to save even more. By using this method, you can earn between $300 and $800 each year without changing how you shop.

8. Choose Generic and Store Brands

Generic brands usually cost 20-40% less than name brands but often have similar quality. Consumer Reports frequently shows that store brands match or even exceed the quality of name brands in most categories. Start by switching to generic for items you use often, such as cleaning supplies, basic medications, paper products, and pantry staples. This change can help you save $500 to $1,000 a year on household expenses.

9. Audit and Cancel Unused Subscriptions

Most people pay for 12 monthly subscriptions, costing a total of $273 each month, but only use about half of them regularly. Check your bank and credit card statements every three months to spot any recurring charges for services you may have forgotten or barely use. Use apps like Truebill or Honey to help you find and cancel unwanted subscriptions automatically. Think about sharing family plans for services like Netflix, Spotify, and Amazon Prime to save money.

10. Practice Energy Conservation

Small changes in energy use can lead to big savings. Replacing regular bulbs with LED bulbs can save you over $80 each year. Using programmable thermostats can lower your heating and cooling bills by 10-15%. Unplugging electronics helps stop phantom energy loss.

Simple habits, like adjusting your thermostat by 2-3 degrees with the seasons, washing clothes in cold water, and air-drying clothes, can lower your utility bills by $200-400 a year.

11. Buy Used or Refurbished When Practical

If you are looking to save money on things that lose value quickly or aren’t used often, consider buying used items. Websites like Facebook Marketplace, Craigslist, and OfferUp can help you find good deals on furniture, exercise equipment, and electronics. You can also buy certified refurbished electronics from manufacturers. These often come with warranties and cost 15-30% less than new ones. This approach works well, especially for smartphones, laptops, and appliances.

12. Plan Meals and Reduce Food Waste

American households waste about 30% of the food they buy. This waste costs a family of four around $1,500 each year. To reduce this waste and save money, plan meals based on ingredients you already have. Store food properly and think of creative ways to use leftovers. Use apps like Mealime or PlateJoy to help with meal planning. Before making grocery lists, check your pantry first. This habit can lower food waste and cut down on grocery costs.

13. Use the Cash Envelope Method

Set aside cash for things like entertainment, dining out, and personal spending. Once the envelope is empty, stop spending in that category for the month. This limit helps you avoid overspending on costs that can affect your budget. Start with one category that is a problem for you, and then add more as it becomes easier.

14. Embrace Free Entertainment

Save money on entertainment by choosing free or low-cost options. Public libraries have books, movies, and events you can enjoy. Community centers offer fitness classes and activities at little or no cost. Parks and hiking trails provide outdoor fun without any fees.

Look for free events in your area using apps like Eventbrite and Facebook Events. Many cities host free concerts, festivals, and cultural activities throughout the year.

15. Conduct Monthly Financial Reviews

Set up monthly sessions to check your expenses, evaluate how well your budget is working, and adjust spending categories if needed. This practice keeps you accountable and helps you catch small overspending before it turns into bigger budget issues. Use this time to update your financial goals, celebrate savings milestones, and plan for upcoming costs. Regular reviews turn budgeting from a boring chore into an empowering tool for managing your money.

16. Implementing These Habits Successfully

Begin with 2-3 habits that fit your lifestyle and spending habits. Making changes gradually will help you succeed in the long run instead of feeling overwhelmed. Keep track of your progress and celebrate small wins. Write down how much you save with each habit to stay motivated and see how different money-saving strategies add up over time.

Conclusion

These 15 money habits can help you spend less and build wealth. The key is to be consistent—small actions done regularly can lead to big financial improvements over time. Start using these habits today, beginning with the easiest ones. In about six months, you will see noticeable changes in how you spend and save money. Remember, building wealth takes time, and these habits lay a strong foundation for lasting financial success. Over time, you can cut your spending by 15-25% without lowering your quality of life. This can save most households thousands of dollars each year.