woman holding coin over jar with text that says 10 practical ways to cut expenses and save money

Tell me if this sounds familiar: you’re stressed about money and want to be doing better (paying off debt, saving money, feeling in control), but figuring out how to cut costs and save money feels overwhelming—and you don’t want to give up things that you like and enjoy. If that’s you, I get it.

I certainly wouldn’t want to stop buying plants, eat only rice and beans, never buy new clothes that make me feel good, only stay in the cheapest hotels, or give up traveling altogether just so that I could save money. That would make life a lot more depressing. It just doesn’t feel like it’s worth it.

Why Cutting Expenses Doesn’t Have to Mean Deprivation

the key to cutting expenses isn't deprivation with background image of woman dropping coin into piggy bank

Luckily, there are ways to cut costs that don’t involve extreme deprivation or require the standard advice we often hear (NEVER eat at a restaurant, don’t buy coffee, ONLY buy things you absolutely need).

The reality is that depriving yourself of all fun and joy in your life is not a great way to live—and it’s not sustainable. Just like most people give up on diets and other New Year’s resolutions after a few weeks, extreme restrictions in spending likely won’t last.

You start to feel like it’s not worth it. You slip up once or twice and then give up because it obviously isn’t working. Sometimes you experience a rebound that makes your spending worse than before.

The key to cutting expenses and saving money isn’t deprivation—it’s figuring out how to maintain the things that are most important to you while cutting back on everything else.

If you want to reduce money stress and start feeling more in control of your money, you need to start by figuring out what you want most and then look at how you can cut costs in ways that have the biggest financial impact with the lowest emotional impact.

It’s all about being intentional: making mindful choices that align with your values and support your well-being, rather than cutting for the sake of cutting. Here are some practical tips for cutting expenses and saving money that can help you create real breathing room in your budget—while still enjoying life.

Learn More: 5 Mindset Shifts to Help You Stop Spending So Much Money

How to Cut Costs: Step-by-Step Tips for Saving Money

Scroll through the tips and keep reading below for more details and ideas.

Step 1: Set Your Intention—Know Your “Why”

Before you dive into the practical steps, pause and ask yourself: Why do I want to save money? Is it to feel less stressed, to pay off debt, to finally take that vacation, or to build a safety net? Write down your reasons and keep them close. When you know what you’re working toward, it’s so much easier to stay motivated—even when the steps feel tedious and painful.

One thing I sometimes have my financial coaching clients do is identify and reflect on their top values and priorities. If you’d like to do that, you can sign up to access the free values exercise here.

Step 2: Eliminate Banking and Credit Card Fees, and Earn More Interest

Banking fees are sneaky and unnecessary. Review your account statements for the past year and look for:

Monthly maintenance or service fees
Overdraft/insufficient funds fees
ATM fees

If you’re paying any of these, switch to a no-fee account or make sure you meet the requirements to have fees waived. While you’re at it, check your savings account interest rate. If it’s under 1%, open a high-yield savings account (most are easy to set up and link to your current bank).

For credit cards, use cards with no annual fees unless you are positive that you are getting enough benefit from the card to make it worth it. Bonus: get a no-fee card that gives you cash back and apply that cash back to your outstanding balance.

Step 3: Shop Around for Insurance

Insurance rates creep up over time, often without you noticing. Every couple of years, get quotes from other providers for your home and auto insurance. Use those quotes to negotiate with your current company. Many people save hundreds—sometimes thousands—of dollars a year with this one step.

Step 4: Review Phone, Internet, and Cable Plans

If you’re happy with your phone, internet, and streaming/cable services and are not stressed about money, there’s no need to change. But these are areas where it is possible to cut costs without experiencing a significant sense of loss or deprivation. And because the costs tend to be high, the potential savings can be enough to make a noticeable difference.

Phone:

Consider a budget phone plan and budget phone (cheap phones are better than you think and sufficient for most everyday needs)
Figure out which features you actually use—make sure you’re not overpaying for things you don’t need
Don’t buy new phones as often
Set your phone to use Wi-Fi when you’re at home to reduce data usage
Don’t assume that more expensive always means better

Internet:

Shop around for better deals
Consider a “price for life” deal
Only pay for upgraded service if you have a specific need for it
Call your provider to negotiate a lower rate (there are scripts online if you’re nervous)
Be careful with bundles—it’s not worth it if you end up paying for things you don’t need and don’t use
On the other hand, bundling services can save you money if you are taking advantage of everything and it’s cheaper than doing it separately

Streaming/TV:

Consider putting up with ads to decrease the price
Cancel services that you rarely use or don’t use at all
Sign up for only one or two at a time and switch when you get bored
Or, watch more on streaming services to avoid spending as much on movie tickets and snacks

Step 5: Simplify Food Spending—Without Obsessing Over Coupons

Instead of clipping coupons or driving to three stores, focus on one big change that feels sustainable:

Shop at a less expensive store (like Aldi or Walmart)
Switch to store brands
Plan meals around what’s on sale or what you already have
Stock up on staples when they’re discounted (only if you’ll use them)
Keep a few easy, go-to meals on hand for busy nights to avoid takeout
Reduce eating out by buying prepared foods from the grocery store (cheaper than restaurants)

Pick one strategy to start, and build from there. The goal is progress, not perfection.

Step 6: Audit Subscriptions and Memberships

Go through your bank and credit card statements for the past year. List every subscription and membership—streaming, store memberships, apps, magazines, gym, etc. Ask yourself:

Am I using this enough to justify the cost?
Are there free alternatives?
Could I be satisfied with just one news or streaming service instead of several?

Cancel anything you don’t use or don’t truly value. Even small amounts add up quickly.

Step 7: Embrace Free and Low-Cost Fun

Entertainment doesn’t have to be expensive. Explore free community events, outdoor activities, or borrow books and movies from the library. Invite friends over for a potluck or game night instead of going out. Search for sites that list free and low-cost activities and events in your area.

Step 8: Become a Savvy Shopper

Transforming your spending and shopping habits doesn’t always mean simply “stop buying things.” It can also mean:

Pausing before you buy to make sure you actually want something
Comparing prices to make sure you’re getting the best one
Watching for sales and discounts on things you’d like to get
Evaluating alternatives—are there cheaper options that can fit your needs?
Considering second-hand items
Educating yourself on marketing techniques so you’re less likely to fall for them

Learn More: Smart Spending Guide: Questions to Ask Yourself Before you Make a Purchase

Step 9: DIY When Possible

It’s not practical to DIY everything. Sometimes it’s worth it to pay more for time and convenience. But those costs can add up quickly, and there are many things that you can do on your own that aren’t that hard or time-consuming. Best of all? Figuring things out on your own can feel good and empowering.

Here are a few things you can do to get started:

Get in the habit of asking yourself if you can do it on your own instead of defaulting to buying or hiring someone
Before you hire someone, search for how to do it yourself. Some things are easier than you’d think (I’ve fixed a number of toilet and drain problems with the help of some YouTube videos)
Make your own all-purpose cleaner
Find something you already own that could be fixed up or modified
Search for DIY projects on Pinterest
Do your own landscaping projects
Make your own bread using an easy no-knead bread recipe (you have to start the night before, but it truly is easy)

Step 10: Reduce Waste and Overconsumption

Did you know that 30-40% of the food supply is wasted in the U.S., according to USDA estimates? Goodwill estimates that they process over 75 million pounds of donations each year. Much more ends up in the trash. The reality is that almost all of us are buying many things that we end up tossing or donating. So if you want to save money, there are plenty of opportunities to cut back on things that clearly aren’t providing that much value or use.

Here are a few things you can do to cut costs, reduce waste, and save money:

Eat your leftovers. If you don’t like leftovers, see if you can transform them into something else (for example, use leftover meat in soups, sandwiches, quesadillas, salads, etc.)
Search for tips on preserving produce longer. For example, if you store unwashed berries in glass jars, they last a little longer than they do in the plastic containers they come in
Be careful with aspirational shopping—when you buy things because you think it’s a good idea, but then you never actually use it (I’m looking at you, giant container of salad greens)
Ask yourself if you’ll use something more than once
Look for things that you already own that you could use instead of buying something new
Buy used instead of new or find things for free on neighborhood sites
Ask yourself if what you want to buy is going to be used a lot or if it will quickly end up forgotten and stashed in a closet (this is particularly helpful if you have a lot of clutter and it makes you feel stressed)

Cutting Expenses and Saving Money Without Feeling Deprived

Sometimes there’s no way around the fact that you’re going to have to make some sacrifices if you’re in deep financial trouble. If that’s the case, it’s helpful to really focus on why you want to change your financial situation.

Don’t stop at “I want to get out of debt” or “I’m worried I’ll run out of money.” Ask yourself why that is important. Create a vision of what it will look like if you continue without making changes and what it will look like if you do make some tough choices.

It’s never going to be easy, but start with the tips above, remember your why, and see what you can do.

If you’re NOT in deep financial trouble, these tips can help you cut costs and save money without much, if any, pain.

The most important thing to remember is that it’s about being intentional and finding more money for the things that are most important to you by cutting out the things that don’t matter that much, especially not in the long run.

Set your intention and keep your “why” front and center. If you’re feeling overwhelmed, take a break, breathe, and come back when you’re ready. You’re building a more intentional, sustainable relationship with your money, one step at a time.

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