Best ways to save money
On Wall Street, I built businesses by focusing on efficiency. Every unnecessary dollar spent was a dollar that couldn’t compound. The same principle applies to personal finance. With U.S. households spending an average of $72,967 annually (BLS, 2023), trimming just 10% saves over $7,000 per year. Here’s how to do it.
1. Track Every Expense
- Use apps like Mint or YNAB.
- Awareness alone cuts spending by 15–20% on average.
- What gets measured gets managed.
2. Cook at Home
- Dining out costs 3–4x more than cooking.
- Average household spends $3,639 annually on restaurants.
- Cutting that in half saves nearly $1,800/year.
3. Cancel Unused Subscriptions
- Americans waste $133/month on forgotten subscriptions (C+R Research).
- Audit streaming, apps, and memberships.
- Annual savings: $1,500+.
4. Buy Generic & Use Coupons
- Store brands cost 15–25% less than name brands.
- Apps like Ibotta and Rakuten add cashback.
- Families can save $500–$1,000/year on groceries.
5. Automate Savings
- Set up auto transfers to high-yield accounts.
- Top online banks pay 4–5% APY vs. 0.42% national average.
- A $10K balance earns $400–$500 annually risk-free.
Final Word
On Wall Street, I learned that efficiency compounds into wealth. For households, saving isn’t about sacrifice — it’s about reallocating capital to where it grows. Small daily cuts become thousands annually, and thousands reinvested become financial freedom.
