How to Save Money: 14 Expert Tips for 2025 and Beyond

According to Federal Reserve data, 54% of adults have three months of emergency savings. If you’re in the other half of the population, don’t worry. Here are the steps you can take to save for anything.

These steps are ordered by the tasks you should focus on first. If you have already accomplished a task (like saving an emergency fund), move down to the next one.

Table of Contents

1. 1. Know your “why”
2. 2. Set an emergency fund goal
3. 3. Write down all income and expenses
4. 4. Create a budget
5. 5. Download a budgeting app
6. 6. Try apps to earn and save money
7. 7. Speak with a financial advisor
8. 8. Automate savings 
9. 9. Pay off high-interest debt first
10. 10. Look for daily savings
11. 11. Set long-term savings goals
12. 12. Don’t fall for a get-rich-quick scheme
13. 13. Avoid cutting back too far on spending
14. 14. Remember your future self

1. Know your “why”

The most important part about saving money is knowing your “why.” Research from the National Library of Medicine shows that having a purpose in life translates to positive health and well-being. This is true when it comes to money, too. 

It might sound cheesy, but saving money is much easier when you have a goal, such as saving for an unpaid maternity leave or taking a sabbatical, that’s more important to you than your daily wants. Having something you’re working toward, whether it’s retiring early or spending more time with your kids, makes saying no to the day-to-day shopping temptations a lot easier.

2. Set an emergency fund goal

Unexpected expenses can derail savings. For example, if you are trying to save up for a house but your car needs a new transmission, your dreams of homeownership will be delayed if you don’t have an emergency fund.

After knowing your why, having an emergency fund is the next most important ingredient for becoming a saver. Many financial experts recommend saving three to six months of your expenses in an emergency fund. 

However, even saving one month’s worth of expenses can help you handle the unexpected interruptions that life throws your way.

3. Write down all income and expenses

Write down your monthly take-home pay. Include your paycheck, money from side gigs, child support, alimony, and any other way you might receive money each month.

The next step is to write down your monthly expenses. Reviewing your statements from the last six to 12 months can help if you need to figure out your expenses. Reviewing your bank and credit card statements, you’ll see where your money goes. 

Write down your expenses, including bills, housing, transportation, food, leisure, daycare costs, and anything else you see on your statements. Looking this far back will also allow you to see one-off or non-monthly expenses that can break your budget.

During this step, it’s easy for people to feel regret or shame about their spending habits. However, remind yourself that you’re actively taking the steps to improve. That’s worth celebrating. It’s also a good idea to list your savings categories on your budget and any extra payments you want to make on your high-interest debt.

4. Create a budget

If you’re unsure how much money you can save each month or how much you’re making in minimum debt payments, the best way to find out is to create a budget. 

When creating a budget, write down your monthly obligations, including your bills, clothing, groceries, eating out, entertainment, and more. Next, write down your income. 

If your income covers all your obligations with room to spare, great. If it doesn’t, you have to find a way to reduce your expenses or bring in more income. If you have excess money or expenses you can cut out, you can redirect that money and set up automatic savings.

If you find it hard to save, increase your savings over time. Start with a small amount, then increase it gradually over time. As you earn raises or increase your income, commit to saving a percentage of the increase and enjoy the rest. 

Chloe Moore

CFP®

5. Download a budgeting app

Learning how to budget is a skill. It’s not something that many of us were taught in school or in our households. Don’t be hard on yourself if you exceed your budget during your first month or two. Budgeting takes practice. 

Some people like budgeting with a pen and paper or a spreadsheet. Other people like using apps to help them categorize and track their expenses. 

Try different budgeting methods and see what works best for you. You might find you like seeing your spending on an app on your phone. Alternatively, you might feel more control over the process by using a pen and paper or a simple Excel spreadsheet. EveryDollar is a budgeting app created by Ramsey Solutions that has a free version.

6. Try apps to earn and save money

Beyond budgeting apps, there’s a whole world of apps dedicated to earning and saving money. Give these a try:

• Rakuten: A free cashback app
• Ibotta: A free app that gives you cashback on groceries
• Fetch Rewards: This app gives you points by scanning grocery receipts. You can redeem the points for gift cards.
• Shopkick: Earn points by completing tasks inside of stores. You can redeem points for gift cards.
• Empower (formerly Personal Capital): This is a free budgeting app.

7. Speak with a financial advisor

When you’re trying to scrape together some savings, hiring a financial advisor may seem like an out-of-reach luxury. With modern financial advisor match services, this is no longer the case. For example, Money Pickle is currently our top-choice financial advisor match company, due to its focus on affordability and accessibility. Your first 45-minute, one-on-one meeting is completely free, and is bound to give you some wisdom to help you build savings.

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8. Automate savings 

If we have to choose where our money goes at a given moment, we’ll typically choose a present (not a future) need. Automation helps us avoid spending and save for the long term instead.

Many banks allow you to name your savings accounts to direct money towards goals like vacations and holidays. If you choose a high-interest savings account, your money can grow while you save for your goals, too.

9. Pay off high-interest debt first

Saving an emergency fund helps prevent you from going into debt, and automating your savings helps you avoid the temptation to spend. However, if you already have high-interest debt, it’s a good idea to prioritize paying it off before saving for large goals like home ownership.

The problem with high-interest debt is that it grows rapidly, which can create a trap that’s hard to escape. If you want to prioritize debt payments, use your budget as a tool to find excess funds that you can use to make extra payments. 

The avalanche method is a debt repayment method that prioritizes paying the highest-interest debt first. Many people also benefit from using a debt snowball method, which involves paying off debt from the smallest balance to the largest balance. This helps build momentum, which gets you excited to meet your goals.

There’s no right way to pay off debt that works for everyone. If you need motivation from small wins, the snowball method is a good option. If you want to minimize the total interest you’ll pay over time, try the avalanche method.

Chloe Moore

CFP®

10. Look for daily savings

Part of learning how to save money is developing the habit of looking for daily savings. Paying down high-interest debt and saving an emergency fund are big goals that might take a few months to achieve. But there are many things you can do now to improve your monthly cash flow on a day-to-day basis.

Some examples include comparing prices when shopping, using coupons and cash-back offers, regularly reviewing your subscriptions, and cutting out anything unnecessary. Other tips like meal planning and making coffee at home can help you reach your goals faster.

Finally, don’t forget to call your insurance, cable, and phone companies to ask if you can lower your bill. These small savings can add up considerably and help you get closer to your financial goals.

11. Set long-term savings goals

Setting goals is an integral part of becoming a saver. You likely have multiple savings goals, and there are a few ways to organize them.

One approach is to prioritize them according to your timeline. For example, send more money to goals you want to reach faster and less towards ones that are further in the future. Another approach is to focus on one goal at a time.

There are many ways to set and reach money-saving goals, and you can try several methods to see what works for you.

Ask the expert: How many savings goals should you have at one time?

Chloe Moore

CFP®

I typically recommend setting no more than two or three goals at a time. I also suggest having a mix of shorter-term goals that are fairly easy to achieve and a longer-term goal that may take more time and effort. This combination can keep you motivated, and as you achieve short-term goals, you can add new ones. 

12. Don’t fall for a get-rich-quick scheme

When you start on a money-saving journey, it’s natural to want to speed up the process. Trying out a new business or buying a stock someone recommends to make money quickly might be tempting, but the best way to learn how to save money is to build the habit over time.

13. Avoid cutting back too far on spending

It’s okay to add personal spending money as a line item to your budget each month. That gives you balance and perspective and allows you to look forward to something, like treating your family to ice cream. Cutting back too much can create stress and unhappiness.

14. Remember your future self

Make sure you’re enrolled in employer-sponsored retirement plans or understand how to invest in retirement. Although retirement is a far-off goal for many people, neglecting to think about it and plan for it is a mistake.