29 Money Hacks To Help You Budget Better

Being money smart not only means you know how to earn money but also how to spend that money wisely, and earning a hefty income does not necessarily correlate to financial success. The most financially successful people often know how to budget and allocate their money efficiently, even if they make less than the person next door. 

Key Takeaways

• Money hacks are your key to optimizing savings. These clever strategies help you cut everyday expenses, make the most of discounts, and make wise investment choices. By implementing these hacks, you'll keep more money in your pocket.
• Budget hacks streamline financial processes, making you more financially efficient. From automating bill payments to crafting a tailored budgeting system, these strategies free up your time to focus on what truly matters.
• Frugal money hacks are essential in reaching your financial goals. Whether you're saving for your dream vacation, a new home, or retirement, these shortcuts expedite your progress and make your financial aspirations more attainable.

The 9 Best Frugal Hacks To Save More Money

Snag these 9 money hacks below to help you spend more wisely and live the frugal life.

1. Build a Budget

You might already have an arbitrary budget that lives in your head. This invisible budget might tell you generally how much you can reasonably spend on groceries this week or that new potted plant you have been eyeing for the entryway, but you need to take the time to put a budget down on paper. Better yet, whip out an Excel spreadsheet.

Creating a living and breathing budget is the easiest money hack. This old-fashioned P and L (profit and loss statement) will be your best friend when making smart decisions with your money.

Essentially, your budget will look like a subtraction of all expenses from all income. Easy right? It is relatively simple, but there are some nuances between types of expenses and timing that will be key in ensuring your budget is done right.

Your first step in building a budget is determining the timeline of your budget. Do you want to break it down by quarter, month, or week? Once you have set the timeline, you can consider income made during that timeline and expenses incurred.

Now, there is a major distinction between fixed and variable expenses. Fixed expenses are things that you cannot easily change just by altering your spending behavior. Think about your mortgage, car payments, insurance, etc. Because fixed expenses are often amounts determined by other parties, these expenses will not be the primary focus when it comes to spending less money. At least, they will not be the focus at first.

You can change variable expenses almost instantaneously just by altering your spending behavior. Some examples of variable expenses include groceries, gym memberships, and clothing.

After subtracting all fixed and variable expenses from your income for the timeframe, the money left over should be allocated to savings and investments. The goal of a good budget is not only to be practical and executable but to show a big fat $0 at the bottom of the column. This is called zero-based budgeting, and no, it will not mean that you are broke. It simply means that every dollar you earn has a pre-determined purpose. Aim for that $0, and you will be spending, saving, and investing with intention!

 Now, even though savings and investments are noted here last, this does not mean saving and investing should be the last priority. On the contrary, building your budget should be at the forefront of your mind. We will touch on this more later.

2. Use Your Budget Wisely

This might seem like common sense; however, you would be surprised how many people build a budget and then let it sit in the corner, gathering dust. Some people disregard the budget because it does not suit their spending desires and are unwilling to change their behavior for financial stability and success. Do not be one of these people. Live by your budget.

It might be difficult at first, even painful, but the more you practice diligence and frugality, the more it will become like second nature.

3. Spend Less Than You Earn

Now, this also might seem like common sense, but again, you would be surprised how many people live beyond their means. Doing so is a recipe for disaster. Within your budget should be an amount that you can reasonably spend on variable and fixed expenses while still leaving money behind for savings and investments.

If you are finding that your expenses exceed your income or that all of your income is only going to cover expenses and nothing is left over for savings and investments, then begin considering how you can cut expenses, starting with variable expenses first.

4. If You Have Debt, Have a Payoff Plan

If you have debt, such as credit card debt, do not let it sit and accumulate interest. Writing a debt management plan is a critical money hack.

One way to target debt is to first go after the debt with the highest interest rates. Then, as you pay off one form of debt, you move on to paying off debt with lower interest rates.

Another plan of attack is to pay off the smaller amounts owed first, moving on to larger amounts as you go.

As you pay off debt, the payoff amounts you plan to commit to should be built into your budget from the start and adhered to, just like the rest of your budget. You should also aim to save money while you are repaying debt. Planning and sticking to the plan is the only way you will find yourself debt-free; debt-free is a good place to be!

5. Embrace Everything Used

Why pay full price for a book when you can read the same one for half the price? Why spend $20 on that pair of boots that your toddler will outgrow in two months? Why buy that new car now when you can purchase the same car a year from now at a significant discount?

Here’s a secret that is not well known: a new book turns into a used one after one read, new boots turn into used ones after one wear, and a new car turns into a used one after one drive. Before purchasing a new item, ask yourself if you could find the same item gently used elsewhere. If you can, then ditch that new item for its less expensive counterpart. You won’t regret the money saved in the process!

6. Eat What You Buy

How much money are you throwing away in the trash each week in the form of uneaten groceries? How much money are spending on takeout when you have perfectly good food at home?

It is surprisingly easy to spend way too much money on food. Food is most likely your greatest monthly expense, if not in the top three. And this large expense is only exacerbated when we waste food that we purchased at the grocery store for the convenience of eating out.

We get it, there are some nights when you do not want to cook. And that is completely okay. Estimate how many nights a week you can afford to eat out and purchase the food for home-cooked meals for the remaining nights that week. Determine those meals in advance and list the ingredients needed for those meals. When at the grocery, only buy what you have listed out and your other necessities. Then, eat what you buy. Do not get suckered into eating out one more night than you have budgeted for. Remember, you planned for this.

This tactic will prevent you from going overboard at the grocery store and overboard from eating out.

7. Set Goals for Savings and Investments

As mentioned above, savings and investments should be at the forefront of your mind when building your budget. Set goals for how much you want to save and invest weekly, monthly, or quarterly. Then modify your variable and fixed expenses to allow for these goals.

If you do the math and realize that you will not have enough money left for the $500 contribution to savings a month that you wanted, then scrutinize your expenses and determine what you can cut to reach your goal.

8. Utilize Mobile Apps

Many apps can help you track your spending, hunt for coupons and discounts, and set up automatic saving contributions. If you are new to the budgeting world or need a little bit of help, consider utilizing an app.

9. Be Flexible

Be flexible with your budget and with yourself. There will be times when you spend too much or save too little. Do not beat yourself up. Instead, learn from it and keep trying. Remember, Rome was not built in a day, and financial success is not either.

20 Bonus Hacks: Extra Ways to Save More Every Day

Managing your money wisely doesn’t stop with a budget; you can stretch every dollar further with practical, everyday habits. Here are extra life hacks inspired by Money Fit that you can add to your plan right now.

1. Master Smart Grocery Shopping

Shop at discount grocery stores, buy generic brands, and plan your meals ahead. Use store loyalty programs and coupons to shave down your bills. Consider cashback or rewards credit cards for groceries — just be sure to pay off the balance in full each month.

2. Make Coffee at Home

Skip the pricey coffee shop runs and brew your favorite drinks at home. A quality travel mug can save you hundreds every year.

3. Cut Utility Bills with Energy Savers

Switch to energy-efficient LED bulbs, unplug electronics when they’re not in use, and use a programmable thermostat to reduce heating and cooling costs.

4. Use Reusables and DIY Products

Carry a reusable water bottle instead of buying bottled water. Make simple cleaning products or even your own laundry detergent with basic household items like baking soda and vinegar.

5. Meal Prep and Bulk Cooking

Cook in batches to save time and money. Freezing meals helps you avoid pricey takeout when you’re too busy to cook.

6. Re-Shop Your Insurance

Shop around for car insurance rates every year. Comparing quotes can save you hundreds without changing your coverage.

7. Spend Smarter with Credit

Avoid interest and fees by using cash or debit cards when possible. If you do use a credit card, pay off your balance in full each month to steer clear of extra charges.

8. Save on Transportation

Walk, bike, carpool, or use public transportation when you can. Sign up for gas station rewards programs to earn discounts at the pump.

9. Stream Instead of Splurge

Cut the cable cord and switch to free or low-cost streaming services. Local libraries often offer free movies, ebooks, and music too.

10. Unlock More Library Freebies

Many libraries lend more than just books. You can borrow tools, video games, and even passes to museums or local attractions for free.

11. Take Advantage of Cashback and Coupon Apps

Use cashback and discount apps when you shop online. Keep an eye out for promo codes and special offers.

12. Cancel Unused Subscriptions

Review your monthly subscriptions regularly. Cancel the ones you don’t use and consider free trials — just remember to cancel before you’re charged.

13. Try Before You Buy

Test out gym memberships with free trial passes. Borrow tools or equipment from friends or local sharing programs instead of buying new.

14. DIY Gifts for Special Occasions

Homemade gifts like baked goods, crafts, or custom cards make thoughtful, low-cost presents for birthdays and holidays.

15. Sign Up for Birthday Freebies

Many restaurants and stores offer discounts or free treats for your birthday. Sign up for loyalty programs or newsletters to enjoy the perks.

16. Host Inexpensive Gatherings

Instead of spending a fortune on nights out, invite friends over for potlucks, board games, or movie nights at home.

17. Use Automatic Transfers to Save Without Thinking

Set up an automatic transfer from your checking account to your savings every payday. Automating your savings helps you stick to your goals and makes it less tempting to spend what you meant to save.

18. Plan No-Spend Days

Pick one or two days each week where you spend nothing outside of essential bills. No-spend days help break impulse buying habits and make you more mindful of where your money goes.

19. Buy Used When It Makes Sense

Before buying big-ticket items — like furniture, exercise equipment, or tools — check local listings, thrift shops, or online marketplaces for gently used options. You’ll save money and keep good items out of landfills.

20. Master the 24-Hour Rule for Impulse Buys

When you’re tempted to splurge on something you don’t really need, wait 24 hours before buying. This simple pause gives you time to decide if it’s worth it — and helps you avoid buyer’s remorse.

Make These Hacks Work for You

These bonus hacks help you save in every part of your life — from your kitchen and commute to your next birthday celebration. Combine them with a solid budget, smart spending habits, and your personal financial goals to keep more money in your pocket and stress off your shoulders.

Why Frugal Money Hacks Are Worth Your Time

In a world where time is a precious commodity, it's natural to question whether delving into the realm of money hacks is genuinely worthwhile. The answer? A resounding yes. Frugal money hacks are clever strategies, tips, and shortcuts that can help you manage your finances more effectively and make your hard-earned money work smarter for you. Here are some compelling reasons why money hacks are worth your time:

• Maximize Savings. Money hacks are designed to help you optimize your savings. Whether it's finding creative ways to cut down on everyday expenses, taking advantage of discounts, or making wise investment choices, these hacks can help you keep more money in your pocket.
• Financial Efficiency. Implementing money hacks allows you to streamline your financial processes. From automating bill payments to creating a budgeting system that works for you, these strategies can help you become more financially efficient, giving you more time to focus on what truly matters.
• Achieve Financial Goals. Money hacks are instrumental in helping you achieve your financial goals. Whether you're saving for a dream vacation, a new home, or retirement, these shortcuts can accelerate your progress and make your aspirations more attainable.
• Reduce Stress. A well-organized financial life is a less stressful one. Money hacks can help you stay on top of your financial obligations, avoid unnecessary debt, and gain peace of mind knowing that your financial future is secure.
• Learn Valuable Skills. By exploring money hacks, you'll acquire valuable financial skills and knowledge. These skills can have a lasting impact on your financial well-being, helping you make informed decisions and navigate the complex world of personal finance with confidence.

In essence, frugal budget hacks are a smart investment of your time. They empower you to take control of your finances, make informed choices, and ultimately enjoy a more financially secure and stress-free life. So, whether it's finding innovative ways to save or exploring investment opportunities, don't underestimate the value of incorporating money hacks into your financial strategy.