Saving $1,000 a month might sound challenging, but with a few smart strategies, it’s totally possible. Whether you’re looking to build up your savings, pay down debt, or simply have more breathing room in your budget, this goal can make a big difference.
But how can you find that extra cash without feeling like you’re cutting back on everything you enjoy?
Stick around, and I’ll share some practical tips on how to save $1,000 a month without making drastic changes to your lifestyle.
How to save $1,000 a month
Saving $1,000 in a month sounds like a massive hurdle, especially if you’re living paycheck to paycheck now and are finding yourself unable to save anything at all.
Fortunately, if the scenario above sounds like you, you may be surprised to hear that it’s actually completely doable. After all, it’s equivalent to saving only $33 per day.
When it’s broken down like that, it suddenly sounds way easier, right? This is why, with only a tiny bit of self-discipline, you’ll be well on your way to making one of the best financial decisions you’ll make this year.
1. Work out just where your money is going
Before you can start saving $1,000 a month, it’s crucial to understand where your money is currently going.
Take a deep dive into your bank statements, credit card bills, and receipts. List out all your expenses, from rent or mortgage payments down to that daily coffee.
This will help you spot patterns and identify areas where you might be overspending.
You don’t have to get fancy with this – a simple spreadsheet or budgeting app can do the job. The goal is to get a clear picture of your spending so you can make better decisions about where to cut back.
It’s often surprising to see how much those little expenses add up over time, and knowing where your money is going makes it easier to set priorities for your savings.
2. Save on your groceries
Groceries are one of the easiest places to find extra savings each month. Start by planning your meals ahead of time and making a shopping list – this way, you’re less likely to buy things you don’t need.
You should also look for deals and coupons to help you save even more. For me, the quickest way to do this is by using a cash-back app like Swagbucks to help you earn cash back on your grocery shopping.
All you do is scan your receipts or connect to their platform before shopping – and that’s basically it! It’s a simple way to save a little extra on things you’re already buying.
By being mindful about how much you’re spending at the store, you can free up more money to put toward your $1,000 savings goal each month.
Swagbucks
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A great app for making extra money, including with cash back from online shopping, watching videos, playing games and more.
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3. Pay yourself first
One of the most effective ways to save is to pay yourself first. This means setting aside a portion of your income for savings before you spend money on anything else.
Treat your savings like a bill that has to be paid, just like rent or utilities. By doing this, you’re prioritizing your financial goals and making sure you’re building up that savings every month.
Even if you start small, the consistency of saving every time you get paid can make a big difference over time. It also helps prevent that feeling of scrambling to save at the end of the month when the money’s already been spent.
Automating your savings can make it even easier – just set up a recurring transfer to a savings account on payday so you don’t even have to think about it.
4. Bring your lunch to work
Bringing your lunch to work instead of buying it can save you a surprising amount of money. In fact, a survey found that 66% of American workers buy their lunch instead of bringing it to work, spending an average of $37 per week.
That adds up to around $150 per month or $1,800 a year!
By packing your lunch, you can keep more of that money in your pocket. It might take a little extra time in the morning or the night before, but the savings are worth it.
Plus, you have more control over what you eat, which can be a bonus if you’re trying to eat healthier. Even if you start by bringing lunch a few times a week, you’ll see the savings add up quickly.
Related: 65 Incredible Frugal Meal Ideas to Eat on a Budget
5. Cut back on your coffees
Let’s be clear: I’m not a big fan of the theory that if you stop buying coffees, you’ll be able to buy a house. But it’s true that saving $5 a day (at least!) by not making a regular morning trip to Starbucks can save you a lot of money.
In fact, given there are 261 working days this year, not buying a coffee every day of the work week can save you $1,305.
Basically, it’s more about being mindful of how those little expenses add up rather than thinking it’ll solve all your financial problems.
So, if you enjoy your morning coffee, you don’t have to cut it out entirely. Maybe try making it at home a few days a week or switching to a less expensive option.
It’s all about finding a balance that helps you save without feeling like you’re depriving yourself. Those small savings can help you reach your monthly goal, but they’re just one piece of the puzzle.
6. Cut your subscriptions (using a free robot!)
Subscriptions are one of those things that can quietly eat away at your budget, especially when they renew automatically. It’s easy to sign up for streaming services, apps, or monthly boxes and then forget about them.
But those little charges can add up to quite a bit over time.
So take some time to review all the subscriptions you’re paying for and decide which ones you really use.
If there’s something you haven’t used in months, cancel it. You can always re-subscribe later if you miss it.
Even better, look for ways to share subscriptions with friends or family to cut down on the cost. Cutting out a few unnecessary subscriptions can free up extra money each month that you can put straight into your savings.
7. Think about what each item really costs you
Before making a purchase, it’s important to consider the true cost of what you’re buying, especially if you’re using a credit card.
For example, let’s say you buy something worth $500 and put it on your credit card with an 18% APR. If you only make the minimum payment each month, it could take you over two years to pay off that debt – and that doesn’t even include the interest you’ll rack up during that time.
By the time you’ve paid off the purchase, you’ll have spent much more than the original price. Understanding how interest works can make you think twice before charging a purchase you can’t pay off right away.
It’s not just about what the item costs in the store – it’s about how much it will really cost you by the time it’s fully paid off.
You may also be interested in: Why Living Stingy Could Be The Key To Achieving All Your Financial Goals
8. Don’t be tempted to buy something just because it’s on sale
Sales can be tempting, but it’s easy to fall into the trap of buying things just because they’re marked down. A great deal isn’t really great if you’re spending money on something you wouldn’t have bought otherwise.
It’s important to ask yourself if you actually need the item or if you’re just excited by the discount.
Think about whether the purchase fits into your budget and your goals. If you weren’t planning to buy it before seeing the sale, it might not be worth it.
Remind yourself that the best way to save is by not spending money you didn’t intend to spend in the first place. Keeping this in mind can help you resist impulse purchases and stay focused on your savings goals.
Related: How to Live Cheap: 54 Frugal Living Tips to Save You Money
9. Cancel your gym membership
Gym memberships can be expensive, especially if you’re not using them regularly. If you’re trying to save $1,000 a month, it might be time to rethink whether you’re getting your money’s worth.
Take a look at how often you actually go to the gym. If you’re only going once or twice a month, it might make more sense to cancel the membership and look for free or low-cost alternatives.
You can try working out at home, going for runs, or using online workout videos. There are plenty of apps and YouTube channels offering free workouts that can keep you in shape without the monthly fee.
If you really miss the gym, you can always rejoin later when you’re in a better position financially. For now, it’s about finding ways to reach your savings goal without sacrificing your health.
10. Save your fives
One simple way to boost your savings is by starting a habit of saving every $5 bill you come across. It might sound small, but it can add up faster than you’d think.
Every time you get a $5 bill, stash it away in a jar or envelope instead of spending it. Over time, you’ll be surprised at how much you can accumulate.
It’s an easy and painless way to save without feeling like you’re missing out on anything. And since it’s such a small amount at a time, you’re less likely to notice the money going away.
When your stash grows, deposit it into your savings account and watch it help you get closer to that $1,000 monthly goal. It’s a little change in your routine that can lead to big results.
You may also be interested in: 10 Steps to Save $10k in 100 Days With the Envelope Challenge
11. Get a better deal on your cell phone subscription
Cell phone plans can be a major expense, but there’s a good chance you could be paying less.
Start by reviewing your current plan and see if you’re actually using all the features you’re paying for. If you’re consistently under your data limit or don’t use certain services, you might be able to switch to a cheaper plan.
Don’t be afraid to call your provider and ask for a better deal. Sometimes, simply asking if they have any promotions or mentioning that you’re considering switching to a competitor can result in a discount.
It’s also worth looking at prepaid plans or smaller carriers that might offer lower rates for similar services. A few minutes of research could save you a decent chunk of money each month, which you can put straight into your savings.
12. Negotiate insurance and banking fees
Insurance and banking fees might seem like fixed expenses, but they’re often more flexible than you’d think.
Reach out to your insurance provider – whether it’s for auto, home, or health insurance – and ask if there are any discounts you qualify for. Bundling different types of insurance, maintaining a good driving record, or increasing your deductible can lower your premium.
Banking fees can be negotiable too. Many banks charge fees for things like maintaining a checking account or using ATMs, but they may be willing to waive those fees if you ask.
You can also shop around for banks that offer fee-free accounts or better interest rates. It might take a little time, but even saving a few dollars a month can add up over a year and help you get closer to that $1,000 savings goal.
Related: 50 Proven Tips to Save Money and Live Better
13. Make more money
All of these tricks are about saving money through making some fairly minor changes to your daily habits.
But, of course, another way to work towards saving $1,000 a month is to increase your earnings by that much rather than saving it from your existing earnings.
(Or, ideally, do both!)
You probably won’t make an extra $1,000 your very first month of your side hustle, but with some time, this can turn into a steady income stream that lets you easily boost your budget by this amount.
