Simple and Smart Ways to Save Money in 2025

/17 Comments/in /by Mary Hunt

Saving money doesn’t have to feel like a mountain to climb. With the right mindset and a few simple strategies, you can transform everyday habits into substantial savings—even if your budget is feeling a bit tight. Are you ready to start building that financial cushion? Let’s dive in!

save money white piggy bank with female dropping folded bill inside with coins all around

It was shocking to learn that 37% of Americans can’t afford an unexpected expense over $400, and more than 1 in 5 have no emergency savings at all. The median emergency savings for Americans sits at just $600 and 1 in 5 Americans has no emergency savings at all.

While it’s understandable that inflation and rising costs have made it harder for many to contribute to their savings, the reality is we all need to make saving a priority.

Why “Spending Less” Isn’t the Same as Saving Money

It’s so easy to think we’re saving money when we grab something on sale, turn down the thermostat, or make our own cleaning products. Heck, we even give ourselves a big pat on the back for being so “smart” with our spending, right? But here’s the truth:

Unless you’re taking the difference between the regular price and the sale price—or the amount you didn’t spend on bills—and actually putting that into a savings account, are you really saving money?

Nope. You’re just spending less. And let me tell you from experience—you can “spend less” right through your entire paycheck. Trust me, I’ve been there. I spent it all. And I nearly ruined my life.

While keeping spending in check is admirable, it’s easy to fool ourselves into thinking we’re saving when we’re really just… not spending all that we make. It’s a slippery slope. You can get to the end of the month, realize you’re just getting by, and wish you had enough to save. But it’s time to change that.

The key to actual saving—money that’s safely tucked away for the future—might feel daunting if you’ve got a spending habit or a tight budget. But here’s the secret: start small, and stick with it. That’s the only way to make savings a habit you can rely on.

The $5 Challenge: Save Money Without Thinking Twice

five dollar bills challenge save money

Next time you get a $5 bill, don’t spend it. Save it. Find a special little spot—your personal stash for $5 bills—and make this your new rule: No spending $5 bills. Ever. Just tuck them away, and don’t overthink it.

You’re going to be amazed at how quickly those $5 bills add up—especially if you receive tips at work. Once you’ve saved $50, take those ten $5 bills and open a real savings account at your bank or credit union.

Can’t quite imagine holding on to those $5s? No problem—start with George, the $1 bill! Just start saving and watch how fast those $1 bills turn into $5s. You’ll be saving more than you think!

And don’t worry if you don’t carry cash. If you’re swiping your debit card all the time, you can still make this challenge work. It just requires a little extra effort.

Here’s the routine: Every time you make a purchase, think about the change you would’ve received if you had paid with cash. Let’s say your Walmart bill is $41.31. If you’d paid with two $20s and a $10 ($50 total), you’d likely get a $5 bill, three $1 bills, and 69 cents back. Instead of pocketing that $5 bill, hop into your online banking app and transfer it straight into your savings account before you even drive away. See how simple that is?

It’s Never Too Late to Start!

You don’t have to wait for the perfect moment to start saving. Whether you’re in your 20s or 40s, small daily contributions can add up to big results by the time you’re 65. According to Business Insider, if you start saving just $2 a day at age 20, or $20.55 a day at 40, you could be on track to become a millionaire with compound interest working in your favor.

Remember, it’s about consistency, not perfection. The earlier you start, the more time your money has to grow. So, skip that daily latte or extra snack, and put that money to work for your future—your 65-year-old self will thank you!

Turn Loose Change into Big Savings

loose change female hands holding quarter and nickels

If stashing paper currency isn’t your thing, here’s another method that works wonders—and it’s easier than you think: coins. Yep, those little pieces of metal that often get tossed into the bottom of your purse or rattling around your car. You might be surprised at how quickly they add up.

In just one year, my husband and I saved over $1,100 in coins. And honestly, it was painless. We couldn’t believe how much we had saved just by being mindful of those forgotten pennies and quarters.

We’re both a bit OCD about not carrying around heavy change, so we set up “dump stations” all around the house and in our cars. The key is to stay consistent and make it a habit. The rule is simple: Do not spend coins. Ever.

The 52-Week Challenge: How to Save $1,400 in a Year

This is one of those challenges that’s as fun as it is rewarding! Here’s the idea: you’ll need a weekly calendar like this one to track your progress. Each week, save an amount that corresponds with the week number. So, for Week 1, save $1. In Week 2, save $2, and so on. By the end of January, you’ll have saved $15 (because $1 + $2 + $3 + $4 + $5 = $15).

Keep going, and by the end of the year, you’ll have saved nearly $1,400! That’s a solid start toward an emergency fund or any other savings goal you have.

Want to flip the challenge? Instead of starting small, tackle the heavy lifting first. Save $52 in Week 1, $51 in Week 2, and so on, until you save just $1 in Week 52. This puts the toughest part of saving up front when your enthusiasm is at its peak.

Either way, if you stick with it, you’ll have built a powerful savings habit. Before you know it, you’ll be well on your way to a nice little cushion for life’s unexpected expenses.

How to “Pay Yourself” and Build an Emergency Fund

Okay, bear with me here—it might sound a bit silly, but stick with me. Create a new “bill” for yourself that you’re obligated to pay every month, and name it something like “Pay Myself First.” Treat it like an invoice for $5—something you can’t skip.

I don’t care if you’re just starting out or if money’s tight—if you’re truly committed to saving, I promise you can carve out $5. Put that little bill at the top of your list—right above rent, groceries, or your phone bill.

Here’s the fun part: Your smallest bill is going to become your absolute favorite. And before you know it, you’ll feel compelled to raise it. You’ll find yourself saving more without even thinking about it. Watch how this tiny habit can start to snowball. Trust me, you’ll get hooked!

Keep the Momentum Going

Once you’ve made that final car, credit card, or any other payment, take a moment to celebrate—just a little. But don’t stop there. Instead of sending that same payment to the bank or finance company, continue making it. The twist? You’re now paying yourself. Deposit that money straight into your savings account.

Here’s the beauty of it: You’ve already been living without that money, so there’s no sudden “lifestyle change” to deal with. Your routine stays the same, but now you’re building your savings rather than paying off debt. Tricky, right?

Creative Ways to Turn Discounts into Real Savings

rakuten online shopping coupons rebates save moeny

You know that feeling of walking out of the supermarket, proud of the savings from all those coupons? Here’s how to take it to the next level: note exactly how much you “saved” and then really save it. Take that exact amount and deposit it into a savings envelope, drawer, or—better yet—a savings account. This is true saving, not just spending less.

Now, if you’re using something like Rakuten (and if you’re not, sign up today!), think of every cashback payout as real money in your pocket. When you receive your Big Fat Check every 90 days, do yourself a favor—deposit it straight into your savings account. Do not—DO NOT—cash it.

Do you use a cashback credit card? If you’re paying your balance in full each month (smart move!), don’t let those cashback rewards sit there, ready to disappear into the ether. Move that money straight into your savings account, no matter how small it may seem. The more you do this, the more it adds up, and the more your savings will grow—quietly, steadily, and without you even realizing it.

Set a Real Goal

For most of us, just having money in a savings account feels like a win—but let’s be real, we’re all human. It’s easy to fall off the savings wagon if we don’t have a specific, clear-cut goal to keep us motivated.

Here’s the trick: get intentional by setting a goal that’s both specific and measurable. “I’m going to save money” is too vague to work. Instead, ask yourself these two critical questions:

  1. Why am I saving?
  2. How will I measure my success?

If your goal is to build a solid emergency fund, make it a concrete target. For example, aim to have enough money to cover all your household bills for six months, just in case both wage earners lose their jobs. That’s the kind of serious, realistic goal that will keep you grounded.

Sure, you might qualify for unemployment, but let’s face it—that won’t cover everything. And while your daycare expenses might drop, other costs are going to increase. Write down how much you would need to survive a worst-case scenario, lock eyes with the number, and get busy making it happen. Don’t wait until you’re in trouble—start now!

Stay Focused with Dreamwashing

Once your emergency fund is solid, don’t just stop there—keep going. It’s time to set a new goal. Maybe it’s a vacation, or perhaps you’re dreaming of something more specific, like a new sewing machine or a fishing boat. Whatever it is, find out the cost, grab a picture that represents your goal, and place it somewhere you’ll see it every day.

This is where the magic of “dreamwashing” comes in. Every time you go to make a purchase or financial decision, ask yourself: Is this little indulgence worth setting aside my big picture goal? Are those sale shoes really great enough to push your dream vacation to the back burner? Is that extra takeout meal worth more than your dream fishing boat?

Let that vision of your dream goal wash over the temptation to spend on short-term pleasures. Dreamwashing is a fun, powerful tool to help you stay on track with your savings, so you can reach your bigger dreams, one thoughtful decision at a time.

Take Control Now

If you’re making it above the poverty line, but still can’t handle a financial emergency, you’re walking a dangerous tightrope. Your future shouldn’t be left to chance. Not having savings means your well-being is at the mercy of luck—and that’s a risky place to be.

Even worse, your inability to save could be chaining you to a job you don’t love, simply because you’re terrified that one small mistake could send everything crashing down. In the back of your mind, you know you couldn’t make it one week without a paycheck—and that’s a whole lot of pressure to carry around.

It’s time to break free from that cycle. Take control, get responsible, and start saving. Your future self will be incredibly grateful when you do. You’ve got this—just do it.

 

Question: What’s the one money-saving tip that’s made a real difference for you? I’d love to hear your go-to hack! Share it below.

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17 replies
  1. Arthur Mantzouris says:

    I was saved by my 5 dollar bills….I had a stash of them and I had to pay back sum back rent and it saved me….I had enough to pay it back with my 5 dollar bills..Whoohoo….!!

    Reply
  2. Arthur Mantzouris says:

    I use to save my $5 dollars bills and saved up to over 100 dollars. But had to brake into it to help someone but didn’t go into debt to help the person either….But I will try to see if I can start saving the $5 dollar bills again. I’ve got some already so I will save some starting from today…

    Reply
  3. Dionne George says:

    Mary,
    I tried the $5.00 bill savings challenge for the second time, last year. In all honesty the first time around I dipped into the container and took money out. My teenagers always had something that they needed!(lol) Last year, I used a large plastic pretzel container. I cut a hole in the top of the lid, so that I could drop the bills inside. Then I glued the lid to the container. When I cut the top off at the end of the year, I had $900 in $5.00 bills!

    My coworker used a empty 2 liter pop bottle (or soda bottle depending on where you live), and saved $700.00 in dimes! The possibilities are profitable no matter what what you choose!

    Have a Happy New Year!

    Reply
  4. Mark Shoenfelt says:

    I could easily save money each week, but I am certain that you are unaware of the reality of some peoples’ lives. You say that anyone can save some money every week. How is someone who is having trouble paying the rent supposed to put five dollars into a savings account each week? Your flippant attitude toward people who are struggling detracts from your message. I know that you pulled yourself out of debt that you unwisely incurred. Many people don’t have enough money to unwisely incur debt, they go into debt just trying to survive.

    Reply
    • Scrooge McDuck says:

      It always amazes me at the comments lashing out at Mary on these type articles. Demonizing her or her message somehow validates the person’s inability to rise above their current circumstances I guess.
      It is indeed possible. I don’t have a high paying job or live in a tiny inexpensive town. I’m not an exception to any rule, I just live below my means. I’ve managed to save even when making next to nothing. You may think you can’t live on what you make but odds are you just can’t live the life you feel entitled to on what you make. I don’t miss out or feel deprived. I just watch spending and get a real satisfaction watching the balance in my checking acct grow monthly. I carefully consider purchases and avoid impulse and convenience purchases. When I get a nice little nest egg going, I transfer it to an online savings acct with better interest. Getting into the habit of making do with less and not spending more when you get pay increases or save $ somewhere else really is the key. I went from no savings to having a several month emergency fund. That continued to grow and when my car died, I was able to buy my next sensible used car for cash (no new monthly payment) without totally depleting my savings. Eventually, I had enough to pay off my meager mortgage (again waiting til I had a cushion beyond that amount). In less than ten years, I’ve gone from no savings to no debt plus more than twice my gross annual salary in the bank. With no debt, I live comfortably on about half of my take home so that’s a lot of financial peace of mind sitting in that account. Now that saving is ingrained behavior , I can even afford the occasional splurge like a weekend trip or nice dinner out with friends.

      Reply
      • Scrooge McDuck says:

        I had a tip forgot to share. I charge larger bills to a cash back credit card and then pay it off in full every cycle. My current card gives me 1.5% back on all purchases and lets me apply the cash back reward to my balance almost immediately. Years ago I got into trouble putting major car repairs I couldn’t afford on a credit card. I too thought I couldn’t afford to save so that card was my emergency fund. When I didn’t have a choice I found the money to make those payments though. Luckily that one experience taught me to tread lightly with credit cards. I find I’m still averse to putting things on a card even though I can pay it off every month. I’m trying to get in the habit of using it for regular purchases rather than a debit card to take full advantage of the cash back. Small savings add up.

    • tessa says:

      wow! did you wake up on the wrong side of the bed ???- Mary is putting this info out for those who can save – she is trying to give people the easiest way to do it – if you are struggling, obviouly these tips are not for you – good luck to those who are having a difficult time and i hope you can resolve your issues!

      Reply
  5. Jeri Held says:

    I have a “piggy” bank on my dresser. I save quarters and dimes. Everyone i get! When the bank gets heavy I roll the coins and replace them with paper currency and start saving the coins over again! It piles up fast!

    Reply
  6. Joanne says:

    Mary, would you please tell us your favorite online savings websites and their rates? I think you did this in the past. Thank you

    Reply
    • Lynette says:

      SmartyPig is great!! I’ve had an online account with them for years. I have money transferred from my checking account to my online SmartPig account every month and it adds up quickly.

      Reply
  7. Belle Mieloch says:

    Mary it is only January 4th and I have already saved $29.00 by checking my receipts. It adds up and I will send check to my saving account at the end of the month. Also will use my credit cards rewards have them credit my bill and then send that same amount to savings. It adds up quickly

    Reply
  8. Nancy Brakka says:

    Years ago I started “rounding up” in my checking account. First to the nearest $1, then to the nearest $5, recording the difference when I balanced the account every month. When it got to $500 I left it there as an emergency fund and started transferring the extras into savings. Over the years I have progressed to having a fully funded 6 month cushion, pay all my bills in full every month and contribute generously to my favorite charities.

    Reply
  9. Bronson Beisel says:

    I’ve been saving change, $1 bills and $5 bills for a number of years. The money eventually goes to a “Dollars and Change” savings account, which just keeps getting larger. I’ve kept better track of my $5 bill savings, and in the past two years that I’ve been doing that, I squirreled away $2,000.

    Reply
    • Mary Hunt says:

      Thanks Bronson for your confirmation that saving money, however small the amount, does add up when we just keep our hands off! Good job.

      Reply
      • Margaret Sproul says:

        I too saved my $5.00 bills and just bought an apple laptop. It seems to me that $5.00 biils are not as plentiful as they used to be, maybe its just my imagination – or maybe more people are saving them…… enjoy your column and I have learned so much. thank you

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