In this post, I want to tell you the best 5 money saving tips that have helped me a lot and improved long-term my financial situation. Some of them are very concrete, others can be adapted to your own requirements.

I grew up in a very parsimonious family: I can still remember we didn’t have a TV when I was a small child, and it was an iconic event when my parents came home with it one day. We still kept it for more than 20 years (thank you Grundig for such quality!) despite it was a tiny and old box with bad sound.

And then came the time when my mother took me to the bank for the first time – I was still a child – and we opened a savings book account for me, where I could deposit huge amounts (of Italian lire, so not really worth anything but still impressive when one comic book cost 3.500 of them). Being instigated by stories of Uncle Scrooge, I loved to stare at the savings book and to imagine what to do with all that money.

Now savings books are outmoded and the younger generation cannot even imagine how it was when every country in the EU had a different currency, but my basic attitude is still the same as 30 years ago.

Table of Contents

5 helpful money saving tips

A concrete goal

One of the best ways to save money is to set a goal. Start by thinking of what you might want to save for—perhaps you’re getting married, planning a vacation or saving for retirement. Then figure out how much money you’ll need and how long it might take you to save it.

I can tell you that to lower my sights on expenses is not always as easy as I wish it was. So what keeps me going?

For any negative action, like not spending money for Amazon Prime Video*, I need a positive goal I want to reach. Saving – or building up assets – still isn’t enough for me; I have to visualize a specific goal in order to follow the money saving tips, having a purpose in mind.

Whether it’s for paying off the mortgage for your own property, a sailing boat trip around the world, or being able to pay yourself an unconditional basic income without the necessity to work after your 40s. Everyone has something that motivates them personally to save and invest. So if you’re at the start of saving money, you should be aware of what motivates you – this will help you stay on the right course for the years to come.

Cancel unnecessary 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.

One of the biggest costs I always underestimated were monthly subscriptions, which can quickly add up to a considerable amount. Many of them were often not even necessary or the same service is cheaper elsewhere. Subscription are particularly “perfidious” when you pay in advance for a long time period, giving up to the promise that you will save lots of money by choosing a yearly subscription.

Subscription are not only limited to the digital world: public transportation, fitness center, magazines or newspapers are money-hungry services that engulf part of your earnings on a regular basis. Some of them are probably necessary for you, but you can check if you need all of them.

As since over one and a half years ago the obligation of working from the office ceased to apply, I cancelled the subscription to public transportation. When I have to go to the office, I can still ride my bike to reach it, or in exceptional situations – like very bad weather -, I can take the train and in the end I am still saving money.

One good advice is to send the cancellation already when you have just subscribed the service, at least I don't have to keep all notice periods in mind and sometimes the vendors come back to me with good offers if I withdraw the cancellation. What also helped me is to make a list of all my subscriptions, analog and digital, and sort out what I really needed. The others I don't need I terminate.

Taking food from home

Meal planning is one of the easiest ways to save money. Use the food you already have in your cupboard, pantry, garden and freezer to save money.

One of my biggest monthly variable costs is food, but the variance is given by how often I have lunch at work or order the food at takeaway’s. Depending on where I am, this can be more or less expensive. During my academic studies, in Italy as well as in Germany for a total of almost ten years, I have usually taken my lunch from home.

Nowadays, with a good basic income, I like to order food for dinner at least once a week. I am aware that doing so, I spend up to 100 Euro (25 Euro a week) every month when I could cook at home and so spend only 20 Euro in total, one fifth of the expenses. This is a tiny luxury I allow myself, fully aware that the amount adds up to over 1.000 Euro a year.

Invite friends over

Save time and money by doubling the recipe. Next time you make a family favorite, double the recipe and freeze the leftovers for another day. That way you can get two meals out of one and use the ingredients more efficiently with less waste.

If you do a lot of things with your friends, this and other money saving tips will help you achieving your goals.

Often when I went out with friends, it was in combination with going to a bar or some other cost trap like Oktoberfest, Go-Kart or other expensive recreative activity. Now I prefer to invite friends to my place more often and they do the same, as they also enjoy just being together without the need of distracting ourselves with other activities. You can also cook for – or with – your friends and enjoy a good meal.

Additionally, you are not bound to opening hours and can also have an all-nighter.

Minimalism

You’ll only start saving money when you learn healthy money habits and let your future needs be more important than your current wants—aka when you make saving money a priority. So do it!

I am not an extreme minimalist in the sense that I only want x things in my life and nothing more. For me, minimalism is about a mindful consumption. I do not need a new smartphone or laptop every year. Minimalism also helps me to get rid of things and sell them on Ebay-Kleinanzeigen, Vinted or other platforms.

I believe that everyone has things in their home they no longer need. If you add up the sale value of all these things, most households could end up with several thousand euros instead of having the garage, cellar or attic full of stuff they don’t need anymore. You kill two birds with one stone, you get pocket money and you have more space at home.

And you?

Are you already implementing one of the tips or a similar one?

* What the star means:
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The 5 most effective money saving tips I have used!