Moneyzine
/Debt Consolidation/Saving Money

Saving Money

Moneyzine Editor
Author: 
Moneyzine Editor
7 mins
December 12th, 2023
Advertiser Disclosure
Saving Money

When household income is greater than household expenses, it's possible to save money, either through small changes or strategic moves. On the other hand, when income is less than expenses, the household is going into debt.

In this article, we're going to provide some money-saving tips. Our objective isn't to create the longest possible list, but we do promise to provide insights into some very practical techniques that allow families to save each month. In short, this list will favor quality over quantity. Unfortunately, saving money isn't always easy.

Saving Money on Utilities

In this first section, we're going to be looking for savings opportunities on those routine utility bills: energy, electricity, natural gas, water, and telephone.

Electricity and Natural Gas Bills

  • Insulate Water Heaters: if the unit was built before 2004, then adding an insulating jacket can save around 10% annually on water heating bills.

  • Service House Heaters: having a home's furnace or boiler serviced once every two years can save as much as 10% on home heating bills.

  • Programmable Thermostats: the average household can save about $180 a year by properly setting their programmable thermostats, and maintaining those settings.

  • Lower Temperatures in Winter: by lowering the temperature on a thermostat by 1 degree in the winter time, it's possible to save between 2 and 5% on home heating costs.

  • Higher Temperatures in Summer: by raising the temperature on a thermostat by just 1 degree in the summer time, it's possible to save 2 to 5% on air conditioning bills.

  • Compact Fluorescent Bulbs: each ENERGY STAR compact fluorescent light bulb can save $30 over its lifetime in electric costs, and pay for itself in about 6 months.

  • Water Heater Temperature: by lowering the thermostat setting on a water heater it's possible to save 3 to 5% in energy costs for each 10 degrees reduction in temperature. Most households require a water temperature setting of 120 degrees.

Water Bills

  • Low Flow Showers: the average household could save around 2,500 gallons of water each year by using a low flow shower. In addition to the $60 per year savings on water bills, it's possible to save money on water heating bills too.

  • Watersense Toilets: buying a water saving toilet will save about 4,000 gallons of water each year or roughly $90 per year on water bills.

  • Sink Faucets: by installing a faucet aerator in bathrooms, the average home can expect to save around 500 gallons of water each year, as well as saving money on water heating bills.

Telephone Bills

  • Landline Phone: the most effective way to save money on phone bills each month is simple: get rid of the landline phone. Information gathered during a telephone survey conducted by the Centers for Disease Control and Prevention in 2008 indicated that 20.2% of American homes did not have a landline phone. Savings can range from $15 to $50 per month.

Saving Money on Groceries and Food

In this next section, we're going to focus on saving money on food or monthly groceries to give you an idea of how much you should spend on these expenses.

Grocery Bills

  • Plan Ahead: take the time to plan meals for the week, and make a list before heading to the grocery store. Maintain a list in the kitchen to track the items needed. Take an inventory of what is in stock. Don't guess at the store. To help you get started with food planning, here is a list of recipes on a budget.

  • Shop Less: consolidate shopping trips with the goal of going to the food store once a week. Not only will this save money on food bills, but it'll save on gasoline too.

  • Buy in Bulk: warehouse stores can offer significant savings when buying essential products (such as soaps, paper towels), and there is room in the home to store these items.

  • Ads and Coupons: read the grocery store advertisements in the Sunday newspaper to see what's on sale for the week. Adjust the weekly menu based on the meats on sale at the store. Clip coupons for essential items.

Food and Restaurants

  • Plant a Garden: it doesn't take an expert gardener to grow vegetables such as tomatoes, cucumbers, green beans, and peppers in a backyard or in community gardens.

  • Seasonal Foods: buy fruits, vegetables and other food items when they are in season. A local farmer's market will not only tend to have less expensive items but also fresher produce.

  • Eat Out Less: eating fewer meals in restaurants will lower the cost of eating each month. Consider buying less coffee on the road, or in the office, and brewing more coffee at home. Bring a lunch to work at least a couple of days each week.

  • Bottled Water: twenty years ago, people would have laughed at the thought of buying bottled water, now it is commonplace. Buy a simple container, keep it clean, and start saving money.

Saving Money on Vacations and Travel

In this final section, we'll be providing tips for saving on travel, commuting, and vacation expenses.

Vacation Arrangements

  • Airline Fares: comparison-shop among air carriers that fly to the vacation destination. Don't forget to comparison-shop on neighboring airports too.

  • Flexible Schedules: most families start their vacation on a weekend, and that demand drives up prices. Bargains can often be found by starting a vacation on a Friday instead of Saturday.

  • Car Rentals: call several rental car companies and ask for price estimates. Find out which companies offer weekend or weekday deals.

  • Rental Insurance: verify coverage with the household's automobile insurance and credit card company. In most cases, it makes sense to decline the insurance offered by car rental companies such as the collision damage waiver.

  • Hotel Rooms: book the hotel along with the flight or as part of a vacation package. Use discounts offered by travel club memberships such as AAA when booking a hotel.

Travel and Commuting

  • Drive Cars Longer: a car depreciates more when it's new than in later years. Deriving the most value from a car means driving it longer. If well maintained, a car can last 200,000 miles or more.

  • Gasoline: cleaning air filters, properly inflating tires, keeping the engine tuned, and buying the correct octane will both improve gas mileage as well as lower costs.

  • Travel with Snacks: consumers pay for the convenience of buying food on the road. When traveling, pack a favorite snack before leaving home, including drinks such as water and coffee.

  • Walk: instead of driving a car short distances, try walking instead. Not only will it save money but it's the healthy thing to do too.

Note: If you'd like to be more aggressive in your money-saving strategies, visit our articles where we outline how to save up to a million dollars in 10 years and 2 million dollars.

Bonus: Save Money by Making the Most Of Your Time

Nearly 1 in every 3 Americans pursue a side hustle today — meaning that they take on additional jobs to supplement their primary income, whatever it might be. Those who dedicate up to 12 hours a week to their business earn a median of $1,122 per month. With so many opportunities lying out there, why not save money by making more? We rounded up the best side hustle ideas for different circumstances, listed below:

There are many avenues to track down opportunities as such: you can check side hustle apps or gig apps for seasonal work to take on part-time, for example.

If you've not been living under the rock since 2020, you've probably heard of or even used Doordash. The delivery service can be a safe side hustle for idle nights and weekends, and when budgeted correctly, you can make up to $25 per hour. If it doesn't float your boat, check the apps below:

Additional Resources

  • Household Budget Basics
    Young adults are taught many things in school, but simple home economics concepts like balancing a budget are often overlooked. Without a plan, it's nearly impossible to meet the savings goals individuals and families need to reach their financial freedom. In this article, we're going to explain the basics of household budgeting. This includes how to identify a home's sources of income as well as mandatory and discretionary expenses. We're also going to talk about savings targets, and why they're important. Finally, we're going to finish up with a template that everyone can use to create their own monthly budget.
    Moneyzine Editor
    Moneyzine Editor
    December 6th, 2023
  • Budget Worksheet Part I
    Creating a budget is arguably the first line of defense against runaway debt. It provides the end user with a clear picture of both sources of income and household expenses.
    Idil Woodall
    Idil Woodall
    September 29th, 2023
  • There is one fact about money most people will agree with: There never seems to be enough of it. Paying bills can be stressful, and the lack of financial resources can strain relationships too. Fortunately, creating a budget can help families to plan their expenses and meet their monthly obligations.
    Moneyzine Editor
    Moneyzine Editor
    September 25th, 2023
  • According to the National Bureau of Economic Research, the United States entered the Great Recession in December 2007. While economists might define a recession as a reduction in a country's gross national product, individual families might be faced with extreme financial hardships, including the loss of a job. In this article, we're going to provide some tips that can help families survive a recession. As part of that explanation, we're first going to describe what to expect during an economic downturn. By first gaining this knowledge, it will be easier to understand how to create a plan that helps ease...
    Moneyzine Editor
    Moneyzine Editor
    September 25th, 2023
  • Staying Out of Debt
    It's uncomfortable to be in debt; no one likes the feeling of being out of control, especially when it comes to their personal finances. Individuals in this situation have two problems to solve: getting out of debt, and staying out too. In this article, we're going to start by talking about some of the signals that indicate a problem could be on the horizon. Next, we'll explain some of the habits that help individuals to eliminate debt. Finally, we'll talk about the steps borrowers can take to stay out of debt.
    Moneyzine Editor
    Moneyzine Editor
    April 17th, 2024
  • The loss of a loved one is never easy. Until that deep mourning is over, it's also not a good time to make decisions with long term implications. Eventually, clarity of thought will return and it may be necessary to do some financial planning after the death of a husband, wife, relative, or close friend. In this article, we'll be talking about some of the actions to take following a death in the family, or that of a close friend. As part of that discussion, we'll split this topic into two parts: Those action items requiring near-term follow-up, and...
    Moneyzine Editor
    Moneyzine Editor
    September 25th, 2023

Related Content

  • What Can Help You Meet Your Budget While Shopping for Important Items?
    Budgeting while ensuring you don't compromise on quality can seem daunting. Whether filling your pantry, updating your wardrobe, or keeping up with the latest tech, smart shopping strategies are crucial for keeping your finances in check.
    April 2nd, 2024
  • How to Make a Million Dollars in 10 Years
    Truthfully, this title should actually be “How to Make a Million Dollars in 10 Years Without Going Into Debt", but that is just getting a little too winded for my liking. It’s true though!
    March 26th, 2024
  • How to Apply Maslow’s Hierarchy to Your Money This Year
    You might vaguely remember your psychology teacher talking about Maslow. He pointed at a picture of a triangle as you nodded off in the back of the school room.
    March 27th, 2024
  • How to Tackle Multiple Savings Goals
    When there’s only so much money to go around, there are often multiple savings goals competing for your money. Think of the young professional who’d like to get a more reliable car, buy a house, and save for retirement. Or consider the young family that’s saving for college, retirement, and a bigger house.
    March 22nd, 2024
  • The Countdown to Early Retirement: 10 Expenses to Eliminate
    Dreaming of waving goodbye to the daily grind five years ahead of schedule? The road to early retirement is paved with more than good intentions; it requires a meticulously crafted strategy with surprising twists. It's not solely about what you should be doing—like diligently saving a portion of your income or investing wisely—but also about what you need to stop doing.
    March 22nd, 2024

Contributors

Moneyzine 2024. All Rights Reserved.