Save That Money: Smart Tips for Saving on Rent, Gas, College, Thermostat Settings, and More

My paternal grandmother left me with a bevy of words of wisdom, not the least of which was to spend wisely and beneath my capabilities because “no matter how much money you have, it never seems to be enough”. She was one smart grandmother.   

Even if you don’t have any college loans, have a job that pays great with a bright future, and your parents are still housing you rent-free, life has a way of catching up with most people somewhere down the road.  

Don’t get me wrong. Life offers infinite pleasures that should be taken advantage of as often as possible. But if you overspend travelling on the road of life, that is when the harsh reality of growing older without the means to enjoy yourself can rear its ugly head. (More about travel at the end of this article.) 

Here are 20 fantastic ways to spend less, enjoy life fully, and have plenty left over along the way to explore the world. 

Most importantly, pay yourself first.

Before allowing for any optional expenses beyond housing, food, utilities, and medical care, put a defined percentage of your take-home pay into an untouchable savings account. This account is for an unexpected emergency and to get into a long-term savings mode. Whether you can afford to save 5%, 10%, 20% or more, the importance of putting money aside from every paycheck cannot be overestimated. When you reach the point of having four to six months of expenses tucked away, you can branch out into more lucrative investments.

Don’t overpay for housing.

We all know someone who has told us that they don’t own a house, but their house owns them. Paying too much for rent or buying a property that is at the top of what your mortgage lender will approve of is rarely a good idea. Seeking housing that is a notch or two below what you can afford can save you tens of thousands of dollars over the years. Remember that you still want a rainy day fund to pay for repairs, landscaping, furniture, and so on. This is money that you will be thrilled to have saved for a later date when needed. 

Don’t buy a car just to look good.

You may want, but you do not NEED a BMW, Audi, Porsche, Lexus, Tesla, or any other high end car. A fancy car doesn’t define who you are, and while you may think you’ll look cool and successful driving an expensive car, you’ll smile a lot more by “downgrading” to a highly rated Toyota, Hyundai, Subaru, or gasp(!), a nicely appointed Ford. Luxury cars don’t just cost a lot more to buy or lease, they cost a lot more to insure and repair.  

Buying makes a lot more sense than leasing, which is just another word for renting. Pay off your car loan as quickly as possible, and you can drive the vehicle for many more years with no payments. Lease a car for let’s say three years, and when the lease expires what do you have? Nothing. You can either return the car with zero equity or buy it from the dealer at an inflated price.  

Do all of the recommended maintenance as suggested. Your car will last a decade or longer. And keep in mind that an $80,000 Audi driving at 60 MPH will complete a 180-mile trip in three hours. So will a $40,000 Kia.  

Eat well at home.

Dining out or having food delivered from a restaurant is expensive. The only way that we know around this fact of life is to bring lunch to work and eat dinner at home. This doesn’t have to be every day but try adding up what one less lunch and one less dinner out weekly can save you in a month. Multiply by 12 and you will be eating meals prepared at home much more frequently.

Purchase logo-free or second-hand clothes.

Just like with cars, a swoosh, the name of your favorite sports team, or horse-riding polo player on a piece of clothing isn’t worth paying for. Clothes of equal quality or better can be purchased for less than half the cost if they aren’t adorned with a logo. Honestly, no one except you cares if you went to Hawaii or Paris and bought a tee shirt that proves it. In fact, you can buy a shirt that says almost any destination in the world from the comfort of your home without ever going there.   

For a vast selection of non-logo clothes check out Clothing Shop Online and other similar websites. You’ll find the same shirts, sweatshirts, joggers, and hats without the logo for a fraction of the cost. High quality tees can be had for less than $10, while the exact same shirt without a destination or designer logo goes for at least $25.  

Purchase second-hand clothing at a variety of shops that specialize in used clothing. You can shop the racks regularly as the merchandise is always changing. This is a wonderful way for the entire family to change their wardrobe with gently used previously owned clothing.  

Purchase functional furniture below list price.

Modern furniture is marked up 300% and even more. Shop smart at discount stores such as Ashley Furniture, and Furniture Mart USA. Facebook Marketplace and Craigslist can also be good places to find pre-owned inexpensive furnishings, as well as bikes for the kids before they get into the $1,000 models. 

Keep your smart phone for at least five years.

Technology does a fabulous job of creating “new and improved” everything each year. From televisions to microwaves, convection ovens to tablets and laptops, each model year introduces the absolute best rendition of a particular product that you are told you have to have. But you really don’t. Mobile phones fall into this need/want craziness more than any other electronic device. A new cell phone isn’t needed more frequently than every five years. Not buying into this insanity will save you hundreds, if not thousands of dollars over the years.  

By all means, compare mobile phone companies before deciding which is best for your needs. There are always deals to consider, but when it comes down to it, choose the least expensive option that gives you unlimited talking minutes and more than enough data. Plans are typically quite similar but can be priced far apart when you look at them side by side. Lesser known companies utilize the same major networks to deliver their services, so don’t avoid them when comparing.  

Minimize or stay completely out of debt.

Pay down your balances with a plan that works. Did you know that the average credit card annual percentage rate (APR) is nearly 23%? It’s impossible to make financial progress if you are carrying thousands of dollars of debt at rates like these. Planning to pay down debt should be at the top of your list of things to do. There are all kinds of strategies that are recommended by financial experts, with the debt avalanche and debt snowball being two of the most credible. Check them both out to see if either might work for you.  

To make your payments more manageable consider consolidating high-interest debt into fewer accounts or applying for a debt consolidation loan that combines all of your credit debt into a single monthly payment. The average APR on personal loans are about half of the rate charged by credit card companies. You can find an abundance of valuable information about debt consolidation online, but before applying be sure to check the rates at your local credit union which typically is competitive in this financial area. 

Another popular option is to consolidate your debt with a balance transfer to another credit card that offers introductory 0% interest rates for 9, 12, 15, or even 18 months. There will be a balance transfer fee of 3-5%, but the interest savings will far surpass the cost of the fee. Be sure to pay off the transferred amount before the normal interest rate kicks in.   

Cancel unused and unnecessary subscriptions.

How many monthly subscriptions do you have? Take a look at your bank and credit card statements and you may be in for a surprise. For example, if you are an Amazon Prime member which includes a subscription to Prime Video, do you also need Netflix?  

Do you shop at Whole Foods where Prime members get an additional 10% discount on sale items? This alone can pay for the Amazon Prime annual fee of $139, or about $11.50 monthly. If you don’t shop here or take advantage of Prime’s other discounts for photo storage, free delivery, an extensive music library, or other benefits, do you really need Prime? Maybe you’d be better served with a Netflix, Disney, or Hulu subscription. 

While we’re on the subject of subscriptions, do you subscribe to multiple streaming services that you rarely use? Peacock? Hulu? Pandora? Acorn TV or Britbox? Discovery+, National Geographic+, or Spotify? How many do you have and how many, if any, do you really need? The savings here can be substantial. And while we’re on the subject of monthly memberships, are you a member of a gym that you never go to? Cancel the membership or put it on hold during the warm weather months.  

Take advantage of FREE events in your local community.

Many locales offer free summer concerts, as well as gatherings for residents interested in playing bridge, pickle ball, gardening, or even just taking a group walk. Museums across the country offer free admission on specific days of the week, while others have gone to a “pay what you wish” system where you can contribute what you can afford.

Save money on home utility bills.

Take shorter showers with cooler water and install water-saving showerheads to lower your water bill.  Do you water your lawn incessantly hoping for the emerald green of Ireland? This is easy to cut back on and still have a lawn you’ll be proud of. And if drought conditions persist, a reminder that a dry lawn that turns brownish will bounce back when the rain returns.  

Other ways to lower your utility bills include turning off lights and electronics if you’re not going to be in that room for a period of time, adding room-darkening shades on the south side of your home or apartment, and setting your thermostat higher so air conditioning use is limited. Try 78 degrees during the summer for comfort and adjust downward accordingly if needed. During colder months, start at 68 degrees and wear warm clothes indoors.  

If you must use a credit card, choose one that rewards you for purchases you will be making anyway.

Compare cards that reward you for gas, groceries, and not necessarily for restaurant purchases as you want to reduce dining out expenses. Most importantly, pay the balance in full each month to avoid interest charges.  

Purchase eyewear, prescription or not, online at much lower prices.

There is no requirement to purchase new frames and lenses from the excessively expensive optometrist who conducts your exam. There are many great online options including Zenni Optical and Warby Parker. Just ask for a copy of your prescription after having an eye exam. Savings can be as much as several hundred dollars for just one pair, and you won’t be compromising with frame or lens quality. 

Buy in quantity at warehouse stores such as Costco, Sam’s Club, and BJ’s Warehouse.

If your storage space is limited, purchase more expensive items at these stores to maximize your savings. A second freezer in your garage or basement can quickly pay for itself if you stock up on sale items that can be frozen for an extended period of time.

When possible, walk or bike to your destination rather than paying for mass transit or parking for a personal car.

Can you walk or bike to work even a couple of days each week? Or take mass transit rather than driving your vehicle to not only save on wear and tear, but to eliminate any garage parking charges that you typically pay? You could save hundreds of dollars monthly by ridesharing with a neighbor or co-worker who lives nearby by taking one, rather than two cars to the office.  

Buy the cheapest ticket available for a sporting or cultural event.

But Purchase, for example, upper deck seats or even standing room to a baseball game and then find an empty seat to watch the game. This can work quite well for pro hockey and basketball games, too. Or take in a college game instead of professional, as prices are lower.  

For stage plays or the symphony, last minute rush tickets are often available for a fraction of the original cost. Get there early and hope for some good seats. Regardless, once you’re in the door you will be guaranteed a less expensive evening on the town. Matinee and mid-week evening performances are less expensive than prime weekend nights.   

If your company offers a 401k with a matching contribution, 100% do it!

This is the closest you will ever get to free money from your employer.

If you are saving for a child’s college education, while 529 contributions are not federally tax deductible, many states offer a tax deduction if you live in the state where your fund is focused.

There are funds available in all 50 states to consider. 

Shop and compare car and homeowners insurance with every renewal.

Rates fluctuate regularly with first one company being the lowest priced, then another, and then maybe the first company will become attractive again. Save hundreds of dollars by taking the time to compare what turns out to be identical coverages. Anyone can do this research quite easily, so there is no need at all to employ the services of an insurance agent. 

Buy term life insurance, never whole life.

Life insurance is also best shopped for on your own. There are numerous websites that compare the rates of multiple companies for you in a jiffy. With term life you are simply purchasing coverage that will pay your beneficiary a lump sum should you meet an untimely demise.  

Whole life is marketed as an investment where you can borrow money later in life from the policy if financial needs arise. Keep in mind you would be borrowing money that you have personally paid into the account over the years, but you are being charged interest to access it. Term life has no cash value at the end of the term and is much less expensive than whole life.   

Make coffee at home.

No matter how much you may enjoy the social aspect of visiting Starbucks or your local coffee/tea shop on the way to work, no coffee is worth $4, $5, and often more, when you can brew a spectacular pot at home for pennies a cup. 

Buy generic when you can.

Whether it be for groceries, household needs or medications, many generic products will satisfy your needs and save you tons of money, especially when it comes to prescriptions. Ask your doctor if there is a generic option for any prescription that you purchase. 

Last but not least is some good news about saving money.

Travel is one of life’s most pleasurable activities, and I can’t think of anything that I have always wanted more than seeing the world. The web browser extension, Deal Miner, can help make this a reality by comparing prices for the exact same product across multiple travel websites, assuring you of booking the hotel you want at the lowest price available online. Merely download the extension, which works with Chrome, Edge, Firefox, and the Safari browsers, and activate it when planning a trip. Expedia, Orbitz, Booking.com, and many more sites are instantly searched by Deal Miner, with their best price displayed for you to compare.