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How to Cut Spending

If you want to save more money, maybe to invest in retirement or add some cushion to your budget each month, one surefire way to do that is to cut spending. Okay, okay—that’s not rocket science. But you might need some inspiration for where to start. Here you go: 23 ways to cut spending and save more money!

How to Cut Spending on Home Expenses

Cutting spending on home expenses can mean changing up small habits for bigger savings over time, or in some cases, making a pretty big change for an instant win. Let’s look at examples of both.

1. Go green(er).

The first way to cut spending in your home is to make more energy-efficient life choices. Some of these are financial investments up front. But they all pay off in the end.

For example, you can save on home expenses by turning off the lights when you leave a room, buying light bulbs that have earned the Energy Star, purchasing a programmable thermostat, or washing your laundry in cold water instead of hot. Green changes like these can add green to your wallet. 

2. Refinance your mortgage. 

Refinancing your mortgage can cut your monthly payment or interest rate—or get you a quicker payoff date. In both cases, you’ll spend less on your mortgage overall.

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Save more money for the things that matter (to you) with EveryDollar.

The thing with refinancing is, it’s no magic trick. You won’t snap your fingers and pull a more budget-friendly mortgage out of a hat. And it doesn’t make sense for everybody. But you should consider it if:

  • You have an adjustable-rate mortgage (ARM)
  • Your loan is interest-only
  • Your interest rate is high
  • Your mortgage is more than a 15-year term

If you want to know more, or you’re ready to refinance right now, connect with a trustworthy mortgage pro to talk it over. 

3. Don’t become house poor.

House poor is a term meaning too much of your income is going into your mortgage or rent, leaving you feeling poor in all other areas. Yes, you need shelter. Yes, you want a nice place to live. But you don’t want to spend so much on your house that you can’t afford to make other money goals happen.

Don’t be house poor—be house wise by making sure your housing doesn’t take up more than 25% of your budget. (That includes your rent or mortgage plus HOA fees, taxes, insurance and PMI). This makes your home a blessing instead of a financial curse.

4. Switch to reusable items.

Okay, here’s a tiny, practical way to cut spending: Stop buying paper towels, sandwich bags, and single-use water bottles. Switch to reusable items. Because guess what—using the hand towels you already have tucked in a drawer or cabinet somewhere instead of a new paper towel sheet every time you make a mess means fewer trips to the store and to the dumpster. It’s a small change that will add up over time.

5. Buy generic.

You don’t need brand-name everything. You can splurge on a few items—that’s your right as a shopper. But look into generic medications, trash bags, basic pantry items, cleaning supplies and more. This is a quick and incredibly simple way to cut your spending every time you shop!

6. Make your own things around the house.        

Don’t spend money on things you can make yourself. This is the day of DIY. Pinterest, YouTube and social media are full of tutorials on how to make your own slime, soaps, household cleaners, dog food, laundry detergent, ant killer, face scrubs—you get the idea. The list is longer than this article. For a small investment in ingredients, you can save big in the long run on a lot of the daily essentials.

7. Use less water.

You can also cut spending by lowering your bills. For example, work on using less water around the house. Take quicker showers. Don’t run the dishwasher unless it’s full. And turn the tap off while you’re doing everyday things, like brushing your teeth or shampooing your hair. It’s another small habit that’s super simple and will add up to some serious savings.

How to Cut Spending on Food

Where do Americans tend to overspend the most? Food. That makes it an easy target for savings. But maybe cutting your food budget down sounds impossible? Fear not. It’s actually super possible. Here’s how:

8. Meal plan.

How does meal planning help you cut spending? Making an intentional plan for food helps you avoid all those “Oh no, what’s for dinner?” trips to the drive-thru.

So, plan out each meal you’re going to make in a week. Then you’ll always have stuff on hand for breakfast, lunch, dinner and snack time. When you make a meal plan, you know what you’ll be eating, so you know exactly what to buy. That means you spend less and waste less!

9. Eat leftovers.

Once you make a meal, don’t let what’s left after dinner die a slow and moldy death in a Tupperware coffin in your fridge. That wastes food and money. Put that food to good use. Enjoy it for lunch the next day or put a leftovers night on the meal plan calendar for the week. This keeps you from buying new meals every mealtime, and it’s a super easy way to stop spending money.

10. Brown-bag your lunch.

Speaking of lunches—stop your daily restaurant routine. Stop giving your dollars to the vending machine or office snack shop throughout the day. Remember how we said you should meal plan for snacks too? Keep some midday munchies at your desk and bring your lunch to work most days of the week. It’s okay to eat out some—if it’s in the budget. But bringing in leftovers or brown-bagging a sandwich, fruit and pretzels like your middle school days is a wonderful way to cut spending on food.

11. Order your groceries online.      

When you order your groceries online, you can track the total cost as you go. Then if you’re over budget, you can delete items from your virtual cart before you check out. You don’t have to walk through the grocery store with a calculator in hand to make sure you aren’t shocked at the register. You’ll know exactly what you’ll be paying before you complete the order, and you’re far less likely to impulse buy that family-size bag of sour gummy worms.

12. Hit up those BOGOs and weekly ads.

Stores with BOGO (buy one, get one) offers are basically begging you to save money. They’re setting out their best offers so you can sweep in and grab them. How about following this money-saving move? Make those meal plans based on your grocery store’s sales. You can even stock up the pantry and freezer for the future. Just make sure your purchases fit your budget, never buy stuff just because it’s on sale, and don’t forget what you’ve bought when you’re making meal plans weeks later. Wasting isn’t saving.

13. Brew your own coffee. 

If you’re spending around $4 a day at your fave coffee shop, that adds up to $28 a week and around $120 a month. Instead, you could cut that expense down to around $20 a month by brewing your own coffee. Then put that $100 to work other places in your budget!

How to Cut Spending on Entertainment

So, yeah, entertainment can be expensive. But it doesn’t have to be. Here are ways to cut spending on entertainment so you can have fun—without the guilt. 

14. Pause or cut subscriptions and memberships.

Did you know you can pause or freeze certain subscriptions and memberships? Yup! Look through your apps and talk to your gym to see if they’ll let you do this.

While you’re checking, ask yourself which of these you really need. We aren’t out to bash these services. Some subscriptions are truly life changing, and others are how you want to spend your fun money because you simply enjoy them. That’s totally fine! But take some time to think about the stuff you don’t really even use, watch or read. If you’re trying to cut spending, cutting out that subscription box or magazine you never even open anymore could be just the thing.

15. Enjoy the great outdoors.

There’s a whole world out there, and it’s just waiting to be explored on the cheap. Hiking. Biking. Running. Stargazing. Getting outside for fun is an easy way to save money in your entertainment budget line. Because budget-friendly fun is a thing. An awesome thing!

16. Plan creative dates.

Myth: Expensive dates are the only way to keep romance alive.

Truth: You don’t have to spend a lot of money to show a lot of love. Cut your date night spending by planning creative, budget-friendly dates. Fill a picnic basket with popcorn, apples, an assortment of cheeses, and chocolate (of course)—then take it on a fun hike. Bring home Chinese takeout and eat straight out of the boxes while streaming your favorite show. Browse the aisles of a used bookstore before grabbing coffee and dessert. Enjoy the quality company more than the cost.

17. Evaluate your TV choices.

If you’re paying high prices for your cable package but watching very few of the channels, you aren’t alone. Plenty of people are realizing they can save money and still get all the shows they want (and more!) by switching to other choices.

Look into YouTube, Hulu, Netflix or Amazon Prime Video. Try watching recently aired episodes online. Or use that library card! You don’t have to jump back to medieval days where your only entertainment was watching the knights joust. Just trade that cable bill for a lower-priced—but still awesome—option.

Other Ways to Cut Spending

We’ve got a few more money-saving tricks up our sleeve. Here’s some of our final tips on how to cut spending.

18. Take shopping apps off your phone.

Okay, don’t freak out. We aren’t saying you should never ever shop online. But when you take those store apps off of your phone, you build a barrier in between you and mindless scroll-shopping. With those apps, your thumbs can just tap-tap-tap things you don’t really even need into your cart and into your mailbox. But you’ll think twice before getting on the laptop to buy that new sweater if you’ve got to get up off the couch to make it happen.

19. Go on a short-term spending freeze.

If you want to really challenge yourself, go on a spending freeze. This can mean taking a “no spending day” challenge or jumping into a “nothing but the essentials” week—or month! But if you decide to spend no money at all for an entire day, please check your gas tank first. (That’s another pro tip! Nobody wants you stranded on the side of the road.)

Spending freezes are a great way to cut spending for a while. They can also help you become more aware of your spending tendencies and more thankful for the stuff you already have.

20. Ditch your credit cards.

The best way to get ahead? Stop getting behind. Sounds logical, right? So, apply that logic to your money!

Using credit cards gets you behind in your finances because you’re still paying for your past. Instead, ditch the credit cards, and you can start owning for real. When you cut those debt payments out of your budget, you can put that extra money toward your savings goals. That’s progress. That’s beautiful.

21. Buy used.

Use common sense on this. Don’t buy used tires, toothbrushes or tacos. But if you’re in the market for a car, tools, baby clothes, video games, books or a pet (shelter fur babies for the win!), then you’ll cut how much you spend by purchasing gently used items instead of new ones.

22. Wait before you buy.

If you’re looking at a big purchase, spend time checking prices, weighing the pros and cons, and thinking over if you really need the thing before you buy it. Sure, you wanted that new, genuine leather, flannel-lined laptop case the moment you first laid eyes on it. But will you still want it six months from now? Impulse buying can be expensive. Practice a little patience before making bigger purchases. You can save money by finding a lower price during that research time—or cut the cost completely by deciding not to buy after all.

23. Create a budget.

Okay, we’ve been using the word budget a lot. Here’s why: If you want to cut your spending, the first step is to make a plan for where your money should go. Every. Single. Dollar. That plan is called a budget. Now, we know a lot of people hate the word budget. It sounds restrictive. It sounds boring. It sounds difficult.

Truth is, it doesn’t have to be any of those things! A budget actually gives you freedom because you’ll start telling your money you’re the one in charge. And budgeting doesn’t have to be boring or hard. When you budget with Ramsey+, you get the premium version of the EveryDollar budgeting app and on-demand access to money courses that teach you all the tricks and tips to budgeting your absolute best. (Yes, please.) Right now, you can give it all a test drive in a Ramsey+ free trial! (Super yes, please.)

Hey—you can cut spending. It just takes time and being intentional. Put these tips in action, jump in that Ramsey+ trial, and free up more your money. Start. Today.


Ramsey Solutions

About the author

Ramsey Solutions

Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books (including 12 national bestsellers) published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners. Learn More.

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