How to Save $1,000 a Month: 8 Simple Methods to Cut Costs
Have you ever wondered where all your money went before the end of the month? If you just had $1,000 left, it could solve everything. But who are you kidding? You could barely pay the car payment this month.
However, saving money can — and does — happen; even if you feel like you don't have it to save. It's all in how you look at it. Saving $1,000 dollars is about spotting the biggest leaks in your spending habits and correcting them — one at a time.
One simple budgeting framework is the 50/30/20 rule, where you allocate 50% of your income towards needs, 30% towards your wants, and 20% for debt repayment and savings. But in reality, Americans may not necessarily align with that breakdown. According to the Bureau of Labor Statistics (BLS), the average household spent about 32.9% on housing, 12.9% on food, 17% on transportation, and 8% on healthcare. This amounts to more than 50% for average household needs.
For those who are hourly or gig workers, and even those who are living paycheck to paycheck, there are still ways to help trim down spending. It means thinking more purposefully and knowing how to save $1,000 a month using these eight practical strategies.
Method 1: Track where your money actually goes
Many of us are busy and tend to underestimate how much we spend on various expenses. Knowing exactly where your money goes is the first step to saving $1,000 a month.
To start, all you need to do is track all of your spending. You can even begin with the major categories like housing, food, and transportation. Consider using our budget calculator1 to compare your expenses with others in your location. Being aware of your spending can help you create opportunities to save.
Method 2: Cancel hidden subscriptions
Expenses for streaming platforms, delivery services, and premium apps can often go unnoticed. Research from CNET found that the average American spends about $90 per month on subscription services.
Find out what you currently have by looking through your bank or credit card statements. For instance:
Find out what you currently have by looking through your bank or credit card statements. For instance:
- Entertainment such as music or TV streaming services
- Fitness apps or gym memberships
- Software like photo editing tools or cloud storage
- Delivery services like Amazon Prime or Instacart
Canceling unused or underused subscriptions is a simple action that can add up to significant savings over time. To help, consider using our guide to stop automatic payments for your subscriptions.
Method 3: Take control of your food budget
Food is often the easiest place to save on expenses. It does take a bit of preparation, but the savings can be well worth it. For instance, meal planning and cooking at home could save you more than $200 a month.
Here’s are ways to trim:
Here’s are ways to trim:
- Swapping takeout two times a week for home-cooked meals could save you $20 per meal — or $160 per month
- Buying food staples in bulk like rice, beans, and frozen vegetables could save you $50 to $75 a month
- Replacing your daily $8 lunch with a $2 homemade meal can help shave $180 a month off your spending
Check out our smart grocery shopping guide for more ways to help you stretch your food without a lot of sacrifice.
Method 4: Cut commuting costs
Between gas, auto insurance, and general maintenance, transportation costs can add up.
Try some of these tips to save:
Try some of these tips to save:
- Carpooling with coworkers could save you half the amount you usually pay in gas
- Biking or walking when possible could save around $25 per week
- Using public transit could save over $100 a month
See if you can save even more by comparing car insurance insurers or find out if your insurer has policies for low-mileage drivers.
Method 5: Lower housing and utility bills
Housing probably makes up the largest monthly expense, as evidenced by the BLS consumer expenditure survey. You can try to see if you can negotiate down your rent with your landlord. Or, if you have a mortgage, see if refinancing helps you cut down on the amount you pay in interest.
Be aware that you may have to pay fees to refinance your mortgage, so make sure to check if that upfront cost is worth it.
Here are some other tips to consider:
- Negotiate or shop around for internet services
- Adjust your thermostat to lower utility bills
- Consider living with roommates
- Shop around for renters or homeowners insurance policies
Method 6: Find cheaper ways to have fun
Entertainment doesn’t need to drain your budget. See if you can find free or low-cost activities like local festivals, outdoor movies, or free city events. And instead of paying for the premium streaming, consider downgrading to streaming with ads.
As for socializing, try something new: ask your friends to come over or swap the bar for game nights. You could also consider having a picnic, going out for coffee instead of meals, or even a walk around the park.
YouTubers like Tinesha Davis share great low-cost fun ideas. For more, see our guide to free fun activities.
Method 7: Automate your savings
One of the easiest ways to save is to let automation do the work for you. Using EarnIn's Tip Yourself2 tool can help you make it simple to set savings goals and track your progress. Each time you get paid, you’ll save money and then move the money back at no cost when you need it later.
Method 8: Fix debt and cash flow traps
High-interest debt and overdraft fees can erase any savings progress. Instead, work on setting low balance alerts to avoid overdraft fees. Also work to pay down balances with the highest APR first to save and avoid falling into payday loan cycles. All of these efforts can help you budget.
Tools like Balance Shield3 offer extra protection by alerting you of low account balances, and transfers up to $100 to help avoid overdrafts. There’s also Cash Out4, EarnIn's earned wage access (EWA) tool where you can get up to $150/day, with a max of $1,000 between paydays of money you’ve already earned. It's not a loan; it's simply a way to get your money when you need it, rather than waiting for the traditional payroll cycle. You won’t be charged any mandatory fees or interest.
How $1,000 adds up
This table shows one way the math might work when it comes to saving $1,000. Remember, how you can save may be different than what’s shown below. The key is to find the right strategies that fit your life and goals.
Category | Target monthly cut |
Subscriptions and bills | $100 |
Groceries and dining | $300 |
Entertainment | $150 |
Transportation | $250 |
$200 | |
Total saved per month | $1,000 |
Build momentum, one month at a time
Saving $1,000 a month is about being intentional — not deprivation. It’s about consistent small choices over time, like tracking your spending, automating savings, and cutting out what you don’t need.
Thousands of EarnIn users are taking those same steps. In fact, 52% can now pay for a $400 emergency, 81% experience less financial stress, and almost all avoid late fees and save around $756 per year.5
Tools like Cash Out4, Tip Yourself2, and Balance Shield3 will help you take positive steps. Download the EarnIn app today and start saving smarter.
FAQs
Is it realistic to save $1,000 a month on a $40,000 salary?
Yes, it can be realistic. But it will depend on factors like your debt level, lifestyle, and location.
What's the biggest mistake people make when trying to save $1,000 monthly?
One of the biggest mistakes people often make is not tracking spending. And if you don’t know where your money goes, you can’t start making plans to save.
How long does it take to see results from these money-saving strategies?
Most people see savings within several months, especially if you automate the savings process.
Should you save $1,000 a month or pay off debt first?
Try to prioritize paying off debt first, if it has a high interest rate. But you can still save small amounts to start and increase it over time.
Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.
This Blog was sponsored by EarnIn. While the author received compensation, the information shared is grounded in independent research and intended to provide helpful and accurate guidance to readers.
EarnIn is a financial technology company, not a bank. The Cash Out product is provided exclusively by EarnIn. Certain bank products are provided by Evolve Bank & Trust and/or Lead Bank, Members FDIC. The FDIC insures deposits to protect your money in the event of a bank failure. More details about deposit insurance here. Additional services in the app are offered in partnership with trusted third parties.
1
The calculations provided are based on estimates and should be used for informational purposes only. Please be aware that comparisons may not be 100% accurate. The insights and data presented do not constitute financial advice, and we recommend consulting with a qualified financial advisor for personalized guidance.2
Tip Yourself Account funds and Tip Jars are held with Evolve Bank & Trust, member FDIC and FDIC insured up to $250,000. Tip Yourself is a 0% Annual Percentage Yield and $0 monthly fee service deposit account. For more information/details, visit Evolve Bank & Trust Customer Account Terms. The FDIC provides deposit insurance to protect your money in the event of a bank failure. More details about deposit insurance here.
3
Balance Shield provides free alerts when your bank account balance drops below the threshold you set in your EarnIn account. You can also enable automatic transfers ($100/day - subject to your available earnings - with a limit of $1,000/pay period), if your bank account balance falls below your set threshold. If your available earnings are insufficient to transfer the $100, the transfer will not be completed. You choose the speed of these automatic transfers. Standard speed is available at no cost and the transfer typically takes 1-2 business days. Lightning Speed is available for a fee [see Lightning Speed Fee Table] and the transfer typically takes less than 30 minutes. You will also have the option to set a tip for automatic transfers. Tips are optional and can be $0; however, if you choose to set a tip, it will be applied to each Balance Shield transfer. Whether you tip, how much, and how often you tip does not impact the quality and availability of services. You can cancel the alerts and/or transfers at any time in your EarnIn account settings. See the Cash Out User Agreement for more details. While Balance Shield can help you avoid overdrafts, it does not guarantee protection from third-party fees, and its effectiveness depends on your usage and bank activity.4
A pay period is the time between your paychecks, such as weekly, biweekly, or monthly. EarnIn determines your daily and pay period limits (“Daily Max” and “Pay Period Max”) based on your income and financial risk factors as outlined in the Cash Out Maxes section of our Cash Out User Agreement. EarnIn reserves the right to adjust the Daily Max and Pay Period Max at its discretion. Your actual Daily Max will be displayed in your EarnIn account before each Cash Out.EarnIn does not charge interest on Cash Outs or mandatory fees for standard transfers, which usually take 1–2 business days. For faster transfers, you can choose the Lightning Speed option and pay a fee to receive funds within 30 minutes. Lightning Speed may not be available at all times and/or to all customers. Restrictions and terms apply; see the Lightning Speed Fee Table and Cash Out User Agreement for details and eligibility requirements. Tips are optional and do not affect the quality or availability of services.
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Based on EarnIn Survey of 1,654 EarnIn Community Members conducted 10/12/2023 - 11/15/2023.
