Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure.Ivana Pino · Senior WriterActualizado Thu, January 1, 2026 at 12:00 PM GMT+1 25 min readSaving money takes time and discipline — and it can be a challenge if you face competing financial obligations or unexpected costs. Your ability to save can also be impacted by external factors, including the rising cost of living and high interest rates on debt.The personal saving rate was 4.8% as of the third quarter of 2025. And with many Americans continuing to bear the brunt of inflation and higher costs, saving money could prove to be more challenging than it was just a few years ago.The good news: There are ways to reevaluate your current spending habits and cut costs to put more money more toward your savings account.The most recent Consumer Expenditure Survey from the Bureau of Labor Statistics found that spending on groceries was up by 2.8% year over year in 2024 (the most recent data available). In fact, Americans spend about 13% of their budgets on food at home. For a household that takes home $60,000 per year, that equates to about $7,800 spent on groceries annually, or $650 per month.Of course, you have to eat, so you can’t completely eliminate this big monthly expense. That said, there are certainly ways to save money on groceries.Make a list before you shop: It can be easy to get lost in the colorful aisles of a grocery store and throw unnecessary snacks into your cart. Before you go shopping, take stock of what’s already in your refrigerator or pantry and make a list of your must-buy items. That way, you don’t buy duplicates or spend on groceries you don’t really need.Shop generic: Name-brand products tend to come with higher prices. An easy way to cut grocery costs is to shop the supermarket’s brand of items. Chances are, the ingredients are pretty similar. And generic foods typically cost 20% to 40% less than their name-brand counterparts, which can really add up with each shopping trip.Buy in bulk: This may not make sense if you’re grocery shopping for one. But if you have a larger family, buying items in bulk can help you save big. However, be sure to calculate the price-per-unit (that’s the total cost divided by the number of units) and ensure it’s less than the cost-per-unit when purchasing a smaller quantity. You’ll also want to consider the item’s shelf life and ensure your family can eat through your supply before it goes bad.Consider a rewards credit card: There are several rewards credit cards that offer cash back and bonuses for purchases made at supermarkets, as well as retailers, restaurants, gas stations, and more. Using a rewards credit card for groceries you need to buy anyway can help you shave down the cost further. Just be sure you charge only what you can afford to repay at the end of the billing cycle. Otherwise, interest charges will wipe away those rewards — and then some.The average monthly rent is $1,632 per month for a one-bedroom apartment, according to Apartments.com. However, there are several states where residents contend with even higher prices, especially those living in bustling metropolitan cities.For example, the average monthly rent is $2,995 in New York, $2,510 in Massachusetts, and $2,208 in California.High rental costs can not only strain your budget but also make it more difficult to save and invest for the future. Here are a few ways you could lower your monthly rent:Sign a longer lease: When a landlord has to spend time searching for a new tenant, they miss out on rental income. And with each new tenant, there’s a risk that they won’t stick to their payments. Standard leases tend to be about 12 months long, but signing a longer lease could entice them to lower your monthly rent in exchange for the guaranteed rental income for a longer period of time.Negotiate with your landlord: Having an honest conversation with your landlord can go a long way in negotiating your rent, especially if you have a proven track record of on-time payments and a stable income. It doesn’t hurt to ask.Get a roommate: If your monthly rent payment is too much for your budget to handle, getting a roommate can significantly reduce the financial burden. Just be sure to consult your landlord before taking on a roommate to ensure that it doesn’t violate the terms of your rental agreement.Consider a new location: Real estate is all about location, location, location. If your monthly rent is too high, moving to a more affordable neighborhood could help you trim your monthly rent. Take some time to explore other communities and see if the price difference could justify a new address. Moving could help you save further if you relocate to an area with low sales taxes or a state with no income taxes.Read more: This map compares the cost of living in every stateA continuaciónAverage savings by generation: How do boomers, Gen X, millennials, and Gen Z compare?Are men or women better at saving money? Here's what the data says.These are America’s best and worst states for saving money in 2025According to the National Association of Realtors (NAR), the median mortgage payment rose to $2,291 in 2024, up from $2,032 the previous year. For many Americans, their monthly mortgage payment comprises a significant portion of their monthly expenses. Here’s how to save money on a mortgage:Buy down your mortgage rate: When taking out a mortgage, consider “buying down” your mortgage rate by paying more money up-front at closing. You’ll need to crunch the numbers to ensure this saves you money in the long run. For example, if you plan to sell your home in a few years, you may not come out ahead. But reducing the interest rate on your forever home by even 1% could save you thousands of dollars over time.Make an extra payment each year: Splitting your monthly mortgage payment in half and making a bi-weekly payment, rather than one monthly payment, will result in one extra payment each year. By doing this, you’ll build equity and reduce your principal balance more quickly, lowering the total amount of interest you pay on your loan over time.Refinance your mortgage: Refinancing involves replacing your existing home loan with a new mortgage for the same property but with new terms. If you can secure a lower interest rate, you’ll enjoy a lower monthly payment and long-term interest savings. Again, it’s important to do the math and ensure any closing costs or a longer repayment period don’t cancel out those savings.Utility costs can creep up unexpectedly if you’re not monitoring your usage, especially when temperatures reach extremes during the summer and winter months. However, you can keep your energy costs low with a few smart moves:Lower your usage: Taking shorter showers, using warm or cold water, and unplugging electronics when you’re not using them are just a few ways to reduce your energy consumption and, in turn, lower your monthly utility bill.Repair leaks: Leaky pipes result in using more water, while cracks in your windows or door frame can require more energy to keep your home the right temperature. Taking the time to seal off any leaks and better insulate your home will help reduce your bills.Invest in energy-efficient appliances: Making this swap not only reduces your carbon footprint, but also has a direct impact on your energy bills. These appliances may involve a higher upfront cost, but typically require less energy and resources to run, which is good news for your wallet long-term. Plus, you may qualify for rebates and tax incentives when purchasing Energy Star products.Car payments, insurance, fuel costs, and repairs can add up. The American Automobile Association estimates that the total cost to own and operate a new vehicle was $11,577 per year, or about $965 a month, as of 2025.Making a few changes to your daily habits can help you reduce your transportation costs and put more money toward your savings account each month.Opt for an alternative mode of transportation: Walking, biking, skateboarding, and rollerblading are all more affordable ways to get around. For short trips around town, leave your car at home and try a fuel-free alternative. You’ll not only save money but maybe even enjoy some health benefits.Take public transportation: If you live in an area with reliable public transportation options, take advantage of your local bus or subway. Your employer may even offer a stipend or discount to subsidize your commuter costs.Carpool: Consider creating a carpool group with friends or coworkers and split the cost of fuel if you’re all headed in the same direction.Look into a used car: Driving around in a new car is certainly a nice experience, but it’s typically not the most financially sound option. A new car loses approximately 10% of its value as soon as you drive it off the lot, and depreciates another 20-30% within the first year, on average. Meanwhile, used cars are around $20,000 dollars cheaper than a new car, on average, even for newer vehicles in good condition. So if you absolutely need a personal vehicle to get around, a used car can be a good compromise.Look for fuel savings through apps: There are several apps such as GasBuddy and Waze that can point you in the direction of the most affordable fuel near you.Insurance provides a financial safety net in the event of a car accident, natural disaster, medical emergency, and more. Depending on the number of assets you’re paying to insure and their value, monthly premiums can add up. A few easy ways to save include:Bundle insurance policies: Many insurance providers offer savings for customers who bundle insurance policies. For example, say you need auto and home insurance — purchasing policies from the same company could get you a discount.Ask your insurance provider if you qualify for any discounts: Insurance providers often reward customers who pose the least amount of risk. For example, maintaining a clean driving record with no accidents could help you qualify for a good driver discount from your auto insurance provider. Ask your insurance company about the specific discounts they offer to see if you can trim your bill that way.Shop around and consider different insurance providers: Insurance companies typically offer free quotes online. So do some research and request quotes from several providers to compare rates and choose the best coverage and rate. This is something you can do every couple of years to evaluate your current policies, not just when shopping for a new one.The average cost of college in the United States is $38,270 per student per year, including books, supplies, and daily living expenses, according to the most recent figures from the Education Data Initiative (EDI). And the data shows college costs have more than doubled in the 21st century. Fortunately, there are ways to keep these costs down:Apply for scholarships: There are thousands of scholarships available each year, and they’re not all based on financial need or academic performance. There’s probably a scholarship (or several) based on your unique situation and background. So spend time researching and applying for scholarships offered by the college you’re attending, local organizations, national foundations, and private entities to save money on college.Consider a public university or community college rather than a private institution: Private college costs are significantly higher than public college at $58,628 per year for tuition and on-campus living expenses, according to the EDI. Opting for a public university or community college can shave thousands of dollars off your total bill.Commute if you attend a university close enough to home: Commuting to a university involves its own set of costs, but it doesn’t compare to the cost of on-campus housing at a four-year college or university. If you live close enough to your university, consider living at home or renting a cheaper apartment off-campus and commuting to school.Take advantage of student discounts: One of the major perks of being a college student is the long list of discounts you may qualify for from major retailers, restaurants, streaming platforms, tech providers, and more.Look into funded opportunities: Teaching assistant (TA) and residential assistant (RA) roles tend to come with large amounts of funding, often covering full tuition and/or housing expenses. While these roles are often not available to first-year students, most public and private universities have these roles available for students to apply starting their sophomore year of college.Read more: The 10 best banks for college students in 2025Traveling can be a fulfilling way to spend your time and make new memories. However, depending on your desired destination, paying for a vacation can kill your budget. This doesn’t mean you have to put your goal of traveling on the back burner. There are plenty of ways to make your travel plans more affordable:Use a travel credit card: Travel credit cards can offer discounts on hotel stays, airfare, luggage fees, travel insurance, rental cars, and more. Some may even grant you access to airport lounges that offer their own set of freebies while you wait to board your flight. Choose a card that rewards you for your regular spending and helps you earn cash back, points, or miles that can later be put toward your travel costs. Keep in mind, however, that the more perks a card comes with, the higher the annual fee may be. And carrying a balance results in interest charges that cancel out those savings and rewards. So choose your card and spend wisely.Travel in the off-season: Airfare and hotel rates can skyrocket during peak travel times, such as during the summer months and surrounding major holidays. An easy way to save money on travel is to have flexible travel dates and be open to traveling during the off-season.Book travel in advance: Last-minute travel deals exist, but if you’re hoping to plan a trip that fits neatly into your budget, it may not be wise to wait until the last minute to book your flight or hotel. As soon as you’ve decided to take a trip, you can sign up for alerts from your preferred hotels and airlines to be notified when there’s a sale or when fares are lower than usual. Giving yourself a decent lead time can help you secure the best rate and factor your travel costs into your monthly budget.Research transportation options: Decide in advance if it will be most cost-effective and convenient to use public transportation, rent a vehicle, rely on rideshare, or even walk. And know how far your planned destinations are from one another to maximize efficiency in your daily itinerary. For example, that five-minute Uber ride from a coffee shop to a museum could be a 20-minute walk, allowing you to save money and do more sightseeing along the way. Or, if there’s a bus stop near your hotel, consider taking advantage of public transportation to get to major landmarks.Make eating out count: There’s no need to spend money at a restaurant for every meal of the day, even if cuisine is an important part of your travel. If your lodging includes a kitchen, consider cooking one or two meals a day with groceries from a local store and stocking up on snacks instead of continuously eating out. If you are staying in a hotel room with only a refrigerator and microwave available, keep easy breakfast options available such as fruit, granola bars, cereal and milk, and rolls/pastries, as well as snacks, to avoid eating out multiple times a day. Even you decide you must eat out more than once a day, try to split up your time between fast food/casual dining and nicer restaurants to avoid racking up spending on food.It’s estimated that raising a child through age 17 costs more than $300,000. From basic necessities such as healthcare, food, and education to miscellaneous expenses such as dance classes and birthday parties, there are many reasons why having kids is expensive.If you’re thinking about starting a family or already have kids, here are some ways to cut costs:Buy secondhand: Children outgrow their clothing quickly and are more likely to have spills and dirty their clothes. Instead of buying brand-new clothing, check out your local thrift store or consignment shop. Chances are, these items will be more reasonably priced than something off the rack.Take advantage of free activities in your area: Following community pages on social media and signing up for emails from your local libraries and museums can help you keep tabs on what’s happening in your area and find free events and activities for your kids.Stay on top of preventative care: Scheduling regular check-ups and vaccinations will prevent more serious and costly health issues down the road. If your child needs medication, ask for generic versions, which are often cheaper than brand names. And if your employer offers a Flexible Spending Account (FSA), you can use pre-tax income to pay for qualifying medical expenses.Invest in your child’s future early: As soon as possible, open up a savings account for your child. Putting away even $50 a month, starting from birth until their 18th birthday, would leave them with over $10,000 to put toward their education, first car, or apartment.Buying yourself a new pair of shoes or splurging on a pampering session can be a nice way to treat yourself — and it doesn’t have to impact your ability to save. You can still treat yourself on a budget with these tips:Join store loyalty programs: If you’re a frequent shopper at a particular store, ask if they have any loyalty programs. You may earn freebies or discounts just by sticking with certain retailers or brands.Sign up for emails: Many retailers have email lists they use to make customers aware of upcoming — and often exclusive — promotions. You may also be able to sign up for text alerts to find out about sales and receive coupons.Install browser extensions: Browser extensions such as Honey and Rakuten do the heavy lifting for you. These tools automatically find and apply coupons at checkout when you shop online. They also offer cash back at certain retailers, further reducing the total cost.Take a minimalist approach (when applicable): While we all deserve to treat ourselves, it is important to be pragmatic when shopping. Take inventory of things you have in your home before you go shopping to make sure you are not buying duplicate items. Also, ask yourself what you will use the item for and how often you will use it before committing. And finally, ask yourself if the item is something you can comfortably afford, or, if it is something that is truly important to you, is the hit your finances could take worth it to you?Read more: 5 psychological money hacks to cut spending and increase savingsTax time can be stressful, especially if you think you will owe money in April. The good news is there are several ways to cut down your tax liability:Max out retirement contributions: Increasing contributions to your 401(k), IRA, or other retirement plan lowers your taxable income. In 2026, the contribution limit for a 401(k) is $24,500; if you’re 50 or older, you can set aside an additional $8,000 per year. Your employer may also offer matching contributions, which is free money that doesn’t count toward your annual maximum. So even if you don’t max out your contributions, be sure to contribute enough to receive your full match.Put money in a health savings account (HSA): Contributions to a health savings account are also tax-deductible and help lower your overall taxable income. Plus, the money can be used to pay for qualified medical expenses. And unlike an FSA, any money you have left over at the end of the year rolls over to the next.Look for deductions and credits: Unless you’re a tax expert, you probably aren’t aware of all the tax write-offs available to you. According to TurboTax, some of the most commonly overlooked deductions and credits include state sales taxes, student loan interest, moving expenses, and the child tax credit. Fortunately, there are tax software programs that can help you identify possible write-offs. When in doubt, though, it can be worth paying a tax professional to complete your return so you don’t miss anything.Between food, toys, training, and other supplies, the cost of caring for your pet can add up. According to a 2024 MetLife survey, the average pet owner spends $4,800 on their pet each year. These extra expenses can certainly put a dent in your budget, but there are ways to keep those costs down.Adopt: Rather than buying a pet from a store or breeder, consider adopting. For one, it’s much less expensive; adopting a cat from a shelter costs around $30 to $300, while dogs can be adopted for anywhere from $100 to $700. Meanwhile, buying a cat or dog from a pet store or breeder can cost several thousand dollars, depending on the breed.Get pet insurance: Pet insurance can help limit the costs of medical care for your pet, including checkups and medication. According to the North American Pet Health Insurance Association, the average cost of a pet insurance premium is between $9 and $62 per month, depending on the type of animal and coverage that you have. That could end up being worth it if your pet needs emergency surgery or treatment for a major medical issue.Buy pet supplies in bulk: If your pet typically eats the same food and snacks, or you use certain care products on a regular basis, buying those items in bulk can help you save more on each individual item in the long run.Learn to groom your own pet: Pet grooming can be expensive, especially if you have a dog or cat that requires regular visits. Learning to perform basic grooming tasks — like nail trims and baths — can save you a trip to the groomers and cut down on your pet-related expenses (though you may still want to visit a professional for haircuts, dematting, and other more involved services).Entertainment costs may be the first line item to go if you’re looking for ways to cut budget costs. However, just because you’re looking to save doesn’t mean you have to sacrifice all of your discretionary spending.Cut the cord: If you still pay for cable, consider swapping it for a streaming service instead. For a flat monthly fee, you can have access to a large library of content that you may be able to download for offline viewing, too.Bundle your streaming services: Subscribing to multiple streaming platforms can be just as expensive as a premium cable package. So, look for bundling opportunities (like Hulu's Disney+ and Max bundle) or prioritize one or two platforms that offer your must-see shows and movies.Join rewards or membership programs: Movie theaters, performance centers, and other entertainment venues may offer rewards or membership programs to help you save. For a monthly fee, you could gain access to discounted tickets and concessions, special events, and more.Go to local community events: Supporting the local arts is a great way to enjoy a fun night out without having to spend tons of money. Instead of waiting to spend $100 or more for the next big name, why not spend $20-$30 to check out a local act at a smaller venue or $10 to support a local DJ? If you’re a fan of visual art, scope out galleries and markets in your local area rather than buying museum passes regularly. If you’re a movie buff, see if your city hosts any free movie in the park events or discounted screenings of older films.Shopping for gifts for family birthdays and the holiday season adds up.As of 2025, the average American spends around $1,000 to $1,200 annually on gifts, with around $900 of that centered around the holiday season. For parents, the average spend for a child’s birthday is about $300. And then there’s the other costs associated with celebrations — like prepping for a large holiday meal, buying decorations, and indulging in festive activities, which can quickly drain your bank account.Here are some ways to scale back on your celebratory spending:Buy secondhand: One easy way to save money on gifts and decor is to buy secondhand, either from thrift stores or from your family, friends, or neighbors. While buying secondhand doesn’t work for every product, things like books, certain clothing items and furnishings, and even electronics can still be a treasured gift if you make sure to inspect its condition. For decorations, especially for popular holidays such as Halloween and Christmas, it’s pretty easy to find decor at thrift stores and garage sales.Stick to DIY gifts and festivities: If you’re crafty, consider making your own gifts and getting into the festive spirit at home. For the fall season, carve your own jack-o'-lanterns. During wintertime, make homemade ornaments and cut out paper snowflakes. If you’re great at baking, make desserts with creative packaging. If you know how to crochet or knit, create a one-of-a-kind piece of apparel. Even a DIY card and care basket could be a thoughtful and much-appreciated gift if you put care into it.Take advantage of coupons, deals, and rewards programs: If you do want to go the more traditional route of buying new gifts, there are still ways to save money while doing so. Pay attention to coupons and online ads at local stores year-round. Subscribe to membership rewards programs of stores you frequent often. If you have a credit card, take advantage of cash back rewards and points you earn at specific stores and retailers.Read more: Holiday budget guide: How to save money and avoid debtGrowing your savings account balance takes time and careful planning, but with the right strategy, you can build up enough savings to cover all of your financial goals and long-term expenses.As you put in the hard work to build your savings, here are some ways you can maximize those efforts:If you don’t have a budget in place (or haven’t evaluated it in a while), you may be spending more than necessary. Streaming accounts you forgot you subscribed to, a few too many DoorDash orders, or a gym membership you no longer use are all extra expenses you could easily eliminate.Review your budget and bank statements carefully to see if there are spending categories you could trim down to allocate more money toward your savings goals.Learn more: 7 ways to save money on a tight budgetAutomating transfers from your checking account to your savings account ensures you’re making regular contributions and your balance continues to grow over time. Plus, by setting-and-forgetting your savings contributions, you may not even notice the money has left your account in the first place.Where you keep your savings is just as important as the amount you’re contributing. The national average interest rate for a savings account is only 0.39%, according to the FDIC. However, there are other options that can help your savings grow faster.For example, consider putting your money in a high-yield savings account or certificate of deposit (CD), which may pay as much as 4% APY or more. You could be missing out on extra savings by not exploring high-yield account options.Unexpected financial emergencies can throw your savings off track and result in debt. By creating an emergency fund, you won’t have to worry about a car repair or trip to the emergency room throwing your financial plan off course.Read more: How much money should I have in an emergency savings account?Paying off high-interest debt (such as credit cards) can free up room in your monthly budget to put more toward savings. In fact, eliminating debt that accumulates interest is essentially saving money, especially when your debt interest rates are much higher than your savings interest rates.Using a debt repayment strategy such as the snowball or avalanche method can help you get the ball rolling and save money on interest over time.Read more: 5 ways to start the new year with less debt, according to expertsTreating saving money like a game can help you stay motivated. Try a savings challenge such as the 52-week challenge or no-spend challenge to give your balance a boost.Keeping track of transactions, categorizing expenses, and monitoring progress toward your goals can be a lot of work. Fortunately, there are plenty of money-saving apps that can do a lot of the heavy lifting for you. Signing up for one of these apps can help you be more strategic about saving and staying on track.