Let’s talk about money. It’s essential for living your life, and today, we’re diving into how to save it with 10 practical tips. These tips ensure your wallet doesn’t end up like the empty one in the picture. Can you relate, or are you simply interested in some money-saving strategies? I use most of these tips myself, so let’s dive in on how to save money.

Tip no. 1: Create a budget

Creating a budget is the first step in integrating savings into your daily life and mindset. Some might call it frugality or being cheap, but it’s more about being smart with your money. Just as companies have budgets without being labeled as cheap (well, except maybe by their employees), you should have one too.

A budget means tracking your income and expenses. How to do that you ask? Regularly monitor your bank account or credit card bills and make sure you don’t overspend. Your budget should align with your income. When setting your budget, decide whether you want to max it out or keep some savings for unexpected expenses.

If creating a budget seems daunting, start by writing down your income and expenses in Excel or on paper—whatever works for you. Remember to review your budget regularly to ensure it integrates smoothly into your daily life.

How to create a budget? Take a look at this example budget:

1. Net Income (after taxes and fees): €2500

2. Expenses

• Rent: €800
• Utilities: €150
• Groceries: €300
• Transportation/ Gas: €100
• Eating Out: €100
• Entertainment: €50
• Savings: €200
• Miscellaneous: €100

3. Total income (€2,500) and total expenses (€1,800).

4. Analyze and subtract your expenses from your income. If your expenses are higher than your income, think about areas you can cut back on.

5. Set goals for your remaining money—whether to increase savings, pay off debt, or invest some of it.

Tip no. 2: Cook at home

Cooking at home is one of the easiest ways to save money and can be just as satisfying as eating out, depending on your cooking skills. It can save you hundreds compared to dining out. I’m not saying you have to give up eating out entirely, but reducing how often you go can make a big difference.

Whether you’re single, living with a partner, or have a family, cooking at home is a practical way to cut costs. Some might wonder how to cut costs this way. Well, families, in particular, can see significant savings, but even individuals will notice a difference. Consider cooking larger meals and storing leftovers for the next few days—this not only saves money but also time.

Tip no. 3: How to spend less in grocery stores

Saving money on groceries is easier than you think:

• Buy Generic Brands: Store brands are often just as good as name brands but cost less. Start by trying them in small quantities, and if you like them, go for larger quantities next time.
• Buy in Bulk: This can save money, but only buy bulk items that you use regularly.
• Look for Discounts: Keep an eye out for discounts or coupons to save extra.
• Use Reusable Bags: If your store charges for bags, bring your reusable bags to save money and be eco-friendly.

Tip 4: Automate Savings

Let technology do the saving for you:

• Automatic Transfers: Set up automatic transfers so a portion of your income goes straight into your savings account every time you get paid.
• Micro Saving: Some banks offer micro-saving features, where small amounts (like 50 cents) are saved every time you use your credit card. This method, which is increasingly popular among young people, helps you save money without even noticing.

Like most people these days, you probably have subscriptions like Spotify, Netflix, YouTube Premium, and BookBeat. These can end up costing you a lot of money. One or two subscriptions probably won’t be a big expense, but when you have so many to choose from, you might end up signing on to several platforms and using only a few. I suggest you take a look at all of your subscriptions and think about the necessity of them all. But how do you decide which ones you should keep?

Well, that’s a great question. I can tell you how I do it. I usually only use one or two streaming services at the same time. Most times only one, which is enough. I do not need several streaming services in a household of two since we watch a lot of movies & TV shows together. Also, Spotify or YouTube Premium might be enough if only one person has them in a household or perhaps you just need either Spotify or YouTube Premium, depending on your preferences. Ultimately, these are decisions you have to make in your household to figure out which are necessary and which are not.

Tip no. 6: Cashback

Cashback programs are a great way to get money back on your purchases. They work through apps or credit cards that offer a percentage back on what you spend. How to find them? Search for cashback online or on Google Play. Here are some options:

• Bank Norwegian (credit card)
• Rakuten (app)
• Bonusway (app)
• Honey (app)

Tip no. 7: How to avoid impulse buying

Impulse buying is something most people can relate to. I’ve made plenty of impulse purchases myself that I ended up regretting. Stores are clever at luring customers into buying things they might not necessarily need. Take stores like Ikea and Normal, for example. They make you walk through the entire store before you can leave, increasing the likelihood of buying something. Grocery stores often place candies and other small products by the cashier, so while you queue, you end up buying a Snickers bar or two.

How can you avoid impulse buying? Some people order groceries online to avoid buying unnecessary items. Never go grocery shopping when you’re hungry, as you’re more likely to buy more than you need and choose unhealthy options. Avoiding impulse buying requires self-control. Try waiting over the weekend before purchasing that new phone you don’t actually need, to see if you still feel like buying it.

Tip no. 8: Shop sales and clearance

My spouse and I love using sales and clearance racks when buying clothes. It’s a fantastic way to save a lot of money. Depending on the discounts, you might end up paying up to 70% less than the regular price for a piece of clothing. You can make great finds, but this saving method requires some effort and planning ahead. For instance, buy a new winter jacket for next year at the end of this winter.

My extra tip is to avoid buying anything that you don’t absolutely need. Keep this in mind to ensure you’re truly saving money and not just accumulating more stuff.

Tip no. 9: Use energy wisely

Using energy without control can end up costing a lot of money. For example, keeping lights on in rooms where you aren’t spending time or leaving the TV on while you’re in the shower or out walking your dog. It’s like throwing your hard-earned money away. Here are a few tips to use energy wisely:

• Unplug the TV when you’re not using it.
• Turn off lights after you leave a room.
• Switch to LED bulbs since they use less energy.
• Take shorter showers to reduce hot water usage.
• Seal doors and windows to prevent heat loss in the winter and maintain cooler air in the summer.
• Use energy-efficient appliances to lower your energy consumption.
• Lower your home temperature by a few degrees: 68-72°F (20-22°C) in living areas and 60-65°F (16-18°C) in bedrooms.

Tip no. 10: Do it yourself (DIY)

Learn how to do things yourself to save money. Especially with simple repairs around the house, like fixing a leaky faucet or patching small holes. Other things you can learn how to do yourself are maintaining your car, home, and clothes. These can save you a lot in the long run because you won’t need to replace them as often. Repairing your clothes can extend their life by years. Planting seeds in the garden or a flower pot at home can provide you with homegrown food.

You can read more about saving money in my other post, here. Let me know in the comments if you enjoyed my tips and got some ideas on how to save money in your household. Paying for unnecessary things is like throwing cash in the dumpster every month. Start saving money today, because you can.