How to save money fast - 17 smart tips that’ll boost your bank balance

Whatever your goals, these life hacks will ramp up your savings in no time!

12 min read

These 17 tips on how to save money fast will help you reach your savings targets in no time. While saving during a global pandemic may seem odd, having a fixed goal in the midst of uncertainty can act as a source of calm. Not only that, but it can also help you visualize a happier future, which can improve your overall well-being! So, if you’re wondering how to save money fast, here are our 17 top suggestions on how to boost your bank balance quickly.

How to save a lot of money fast

Before you can start saving money every month, you need to come to grips with your cash flow. This means understanding all of your incoming and outgoing revenue streams, including any debt repayments, monthly bills, and savings contributions. Let’s break this down, step-by-step.

1. Learn to budget and understand your finances

The most important tip for saving money fast is to learn to budget. If you’re in control of your budget, then you’re in control of your finances. Becoming financially independent is essential if you want to reach both your short- and long-term savings goals. Here’s so you can start saving fast:

  1. Keep track of all of your finances over a 30-day period. This includes all of your income and expenditures.

  2. Compare your monthly income to your monthly expenditures to assess how much you’re currently managing to save, or how much you’re overspending each month.

  3. Separate your expenditures into fixed and variable costs. Your fixed costs are expenses that are typically difficult to adjust, such as your rent and utility bills. Your variable costs include more readily-adjustable expenditures such as groceries, entertainment, and subscription services.

  4. Identify any variable costs that you can start cutting back on to increase how much you can put towards your savings goals each month.

  5. Assess your progress regularly and make adjustments if necessary. If this seems a little overwhelming, that can help make sticking to your budget easier.

2. Get out of debt

Before you start saving, you’ll need to pay off any outstanding debts. The longer you delay paying off a debt, the larger it becomes due to accruing interest over time. Therefore, any savings that you make will typically be offset by the amount you owe to your debtors. So, before you focus on saving for something else. 

To do so, consider using the . Created by US senator Elizabeth Warren when she was a Harvard bankruptcy specialist, the 50/30/20 rule offers a simplified approach to getting out of debt. It works as follows:

  • Use 50% of your income on your needs, i.e. your fixed costs such as rent and utility bills.

  • Use 30% of your income on your wants, i.e. your variable costs such as dining out and subscription services.

  • Use 20% of your income to put towards your savings. So, if you make €2500 a month after tax, this would mean you can put aside €500 a month. In just a year, you’ll have paid off €6000 worth of debt.

3. Create a designated savings account

To save money fast, you need to separate the money you spend on your daily needs away from the money you intend to save. This means setting up a designated savings account. By doing so, you minimize the risk of you dipping into your savings funds to cover daily expenses. Instead, it encourages you to stick within your day-to-day budget while keeping your savings safe from temptation!

4. Automate your savings

If you have a fixed monthly income, consider automating your savings contributions each month. This means setting up an automated transfer from your daily spending account to your savings account each month. By automating your savings, you further reduce your chance of using these funds to cover your daily expenses.

5. Automate your bills

While we’re on the topic, it might also be worth automating your bill repayments. Companies frequently charge you late fees if you don’t pay them on time, so paying them before the due date will help you avoid any additional charges.

6. Put a spending limit on your card

A great tip for saving money fast? Set a limit to how much you can spend on your credit or debit cards. This stops you from overspending and encourages you to reassess your daily expenditures in advance. Many banks offer this service. At N26, for example, and choose whether to allow yourself ATM withdrawals—all in a matter of seconds, right from your N26 app.

7. Use the envelope budgeting system

Another great life hack to help you save money fast is to use Dave Ramsey’s envelope budgeting system. This means taking your monthly income out of the bank in physical cash (yes, all of it!) at the beginning of each month and allocating it into separate envelopes in accordance with your budgeting goals. 

So, you’ll have envelopes for your fixed costs (e.g., rent, utility bills), and envelopes for your variable costs (e.g., clothes shopping, eating out, groceries). By paying for everything with a fixed amount of physical cash, it makes going over-budget virtually impossible.

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How to save money fast for a house

Saving up for a down payment on a new home can seem like an impossible target, but there are a few smart tips you can use to make some big savings in next to no time. Let’s take a closer look at how to save money fast for a house.

8. Cut back on rent

Cutting back on rent is one of the quickest ways to start saving a sizable sum of money each month. If you currently live alone, one of the easiest ways to do this is to choose to live with a roommate. This immediately halves your rent, and if you choose to live with two additional roommates, you’ll pay roughly a third of what you’re currently paying.

So, if you’re currently paying €1300 a month for a three-bedroom apartment and you get an additional roommate, you’d save €650 a month. If you decided to live with two people, you’d save around €870 a month—that’s nearly €10,500 a year!

If, however, you already live in a shared apartment, consider swapping to a smaller room. Rent rates are usually calculated in accordance with the size of the room being rented, so you could make some significant savings each month. What’s more, it may also encourage you to downsize, which could mean making a bit of extra cash by selling your unused items.

9. Cut back on your utility bills

Another great tip to save money fast is to cut back on your utility bills. Your electricity and gas bills contribute to a significant chunk of your monthly fixed costs, so if you can reduce them, you can find yourself pocketing a fair bit of extra cash. Here’s how to do it:

  • Change your energy provider. By making sure you’re on the cheapest tariffs on the market, you could save yourself hundreds of euros each month.

  • Swap your light bulbs for LED light bulbs. Not only is an LED bulb 75–85% more energy efficient than a standard lightbulb, but it also lasts 15–25 times longer.

  • Invest in a smart thermostat. This will adjust your central heating intelligently, potentially saving you a great deal of money.

  • Seal up any air leaks. Air gaps around your windows and doors can increase your electricity bill as your heaters will have to run longer to keep the room warm. Instead, seal these gaps with pressure-sensitive weather strips to keep any warm air from escaping.

10. Take up a side hustle

If you want to seriously boost your monthly savings, it’s worth considering taking up a side hustle. This could mean anything from working a few evening shifts at a bar or restaurant after your office job, securing a few freelance gigs, becoming a virtual assistant, or perhaps even pet sitting. 

If you can afford to do so, it can be particularly motivating to put all the money generated from your side hustles straight into your savings account. However, be wary of burning out. Your mental health is more important than trying to achieve any savings goal!

11. Cancel any unused subscriptions

Subscriptions are a money-making dream for a lot of companies. This is because once a customer subscribes to their service, they’re more reluctant to cancel their subscription—even if they hardly ever use it. 

This, in large part, is due to the sunk costs fallacy. When applied to a subscription service, the sunk cost fallacy means that cancelling a rarely used subscription is hard, as you’ve already paid so much money for it. Therefore, canceling the subscription would mean accepting that all the money spent on it up until that point has been wasted. But, by delaying canceling the subscription, it still feels like there’s a chance the service might eventually be used. In general, though, few of us ever fully use our subscription services to their fullest. So, it’s more cost-effective to cancel any unused subscriptions now, rather than hold out for a time when you may hypothetically use it.

How to save money fast for a car

To save money fast for a car, there are several options available to you. As you usually won’t need to save as much as you would for a downpayment on a new house, saving for a car should prove to be a little easier. However, you’ll still need to be smart with your money if you want to be sitting behind the wheel any time soon. 

12. Try to fix things yourself

A great way to make some significant savings is to try to fix anything that breaks yourself. Thanks to YouTube and the internet at large, you can now find out how to fix pretty much anything online. From leaky pipes to the zipper on your jeans, it’s always more cost-efficient to fix these things yourself rather than pay someone else to do it, or replace them entirely.

13. Think before you splurge

Succumbing to instant gratification is one of the biggest opponents of saving money fast. Before you make a significant expenditure, be it an impulse decision or not, give yourself at least three to four days to think it over. This prevents the impulsive part of your brain that wants to get that quick serotonin hit once you make a purchase from taking over. 

If you really want to test yourself, consider only making significant purchases after 30 days have passed. This is a sure-fire way to keep your impulse buying in check and gives you enough time to suss out if there’s a better deal elsewhere.

14. Buy your car at the end of a financial quarter

If you want to get a good deal on a car, the best time to buy is usually at the end of March, June, September, and December. Why? Because most car dealers are given specific sales targets to reach so that they can claim their financial bonuses. While these targets are set weekly and monthly, the big bonuses are given out quarterly. This means that you’re more likely to be given a better deal on a car at the end of each financial quarter as the car dealer will be keen to hit their quarterly sales target. 

How to save money for a vacation fast

Working out how to save money for a vacation fast isn’t rocket science. By using these smart tips and tricks, you’ll be swapping your office chair for a lounge chair on the beach in no time!

15. Cut down on your grocery spending

If you can cut back on your grocery spend each week, you’ll be amazed by how much you can save over the course of a few months. One of the best ways to do this is to plan all of your meals in advance. This means that you can calculate precisely how much you’re going to spend before you go shopping and reduce your chances of going over budget. 

An additional tip is to consider going meat-free once a week. As meat is generally more expensive than vegetables and vegetable-based products, it’s worth choosing at least one day a week where you go without it. This small weekly saving will add up over time. 

On top of that, make sure you look at the products being sold on the lower-level shelves. Supermarkets often put their most expensive produce at eye-level, encouraging you to spend more, while their cheaper products are closer to the ground, making them harder to spot.

16. Designate a no-spend day once a month

To help make money-saving a habit, nominate one day each month where, aside from your fixed costs, you’ll spend absolutely nothing. This could mean making all of your meals from the ingredients you have at home, opting to socialize in the park or at home, and having a relaxing evening reading or watching the TV. Once you’ve gotten used to this, you could increase this to two days a month, and perhaps even one day a week to really increase your monthly savings amount.

17. Sell your unused items

If you want to start saving money for your vacation fast, it’s worth doing an audit of all your unused possessions and selling them on an online marketplace such as eBay or Nextdoor. Not only does this help declutter your home, but it can also mean earning quite a good amount of extra money which you can put towards your holiday savings goal!


Your money at N26

With our , not only can you set yourself , but you’ll also receive push notifications right after each transaction, so it’s easier to keep to your budgeting goals. Signing up for an N26 bank account requires no paperwork, is done 100% online, and only takes a couple of minutes. now, and get immediate access to smart budgeting and savings tools such as Statistics to bring yourself one step closer to financial independence.

By N26

The Mobile Bank

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