Money Saving Tips: Cutting Costs & Growing Savings

October 10, 2025

Even though inflation is easing slightly, rising costs are still putting pressure on many budgets. Over the past year, essentials like electricity (up more than 6%), dining out (up 4%), and car insurance (around 5%) have climbed, according to the latest Bureau of Labor Statistics data.

Finding ways to save money now often requires a little creativity. We spoke with people in their 20s and 30s about how they manage expenses and grow savings without feeling deprived. Here are some of their strategies.

1. Give your cash a job

Some people save almost without noticing by giving cash a specific purpose. Ava Morales, 28, from Phoenix, puts every $10 bill she receives into a separate jar and deposits it into a high-yield savings account a few times a year. “It’s not enough to miss, but over time, it really adds up,” she says.

Meanwhile, Tyler Nguyen, 24, a college student in Chicago, splits any side hustle earnings into two envelopes: one for spending, the other for saving. “I don’t even think about it—it just disappears into savings automatically,” he says.

2. Rank spending and savings priorities

Understanding where your money goes can uncover opportunities to cut back. Jordan Lee, 29, from Atlanta, organizes expenses from essential to discretionary and trims the bottom items. “You might barely notice cancelling a couple subscriptions or skipping a few takeout meals,” he explains.

For example, cutting two streaming services, a little-used gym membership, and occasional lunch delivery could free up around $1,500 annually—enough to boost an emergency fund or chip away at debt.

Saving goals benefit from the same approach. Sarah Benton, 32, in Washington, D.C., lists her priorities from immediate to long-term—home down payment first, then travel, then future education expenses. “I treat my savings contributions like bills and add extra toward my top goal when I can,” she says.

3. Adjust daily habits

Small changes can make a big difference. Elijah Turner, 30, from Boston, orders groceries online instead of wandering the aisles, saving hundreds by avoiding impulse buys. If you normally spend $20 a week on unplanned items, that’s roughly $1,000 a year saved.

Household routines also matter. Finance blogger Priya Desai, 34, in Dallas, avoids running appliances during peak energy hours, saving about $100 per month. Checking your utility provider’s peak times and adjusting habits accordingly can cut electricity and gas bills without major lifestyle changes.

4. Do it yourself

Tackling simple repairs and projects yourself can save a surprising amount. Turner admits he isn’t naturally handy, but with online tutorials and secondhand tools, he fixes plumbing issues, changes his car’s oil, and even builds small furniture projects. “It’s a learning curve, but saving $50 to $75 per repair is worth it,” he notes.

Cooking at home can also be a money-saver. Nguyen learned to butcher and cook his own meat after watching videos online. By buying in bulk and preparing meals at home, he reduces the cost of restaurant-quality meals from $30 or more to just a few dollars per serving.

5. Reimagine socializing

Social plans can be a major drain on your budget, but alternatives exist. Keira Miller, 27, from Providence, realized weekly nights out were costing her hundreds. Cutting back to occasional outings and happy hours saved her roughly $300 a week, which she redirected to paying off credit card debt.

Fun doesn’t have to be expensive. Nguyen and his girlfriend turned inexpensive art supplies into a creative night at home, making memories for just a few dollars instead of spending $50 at a restaurant or movie. “It’s all about rethinking what counts as a good time,” he says.

By setting clear rules for money, ranking priorities, adjusting habits, taking on small DIY projects, and being intentional with social spending, young adults are finding ways to save without sacrificing enjoyment. Even in a high-cost environment, smart choices can grow savings and reduce stress.

Sources:

https://www.fidelity.com/learning-center/smart-money/ways-to-save-money

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.