How to Save $500 Every Month The Simple Way

We save $500 every month on a $68,000 household income — with two kids, a mortgage, car insurance, streaming services, and real life.

No extreme couponing.
No selling the car.
No side hustles.
No misery.

If you’ve searched “save $500 every month” or “how to save 500 dollars a month” and felt discouraged by unrealistic advice, this guide is different. This is the exact system we use — month after month — and have sustained for over three years.

This works for households earning $40K–$90K/year, renters or homeowners, families or singles, expensive cities or small towns. The key is stacking small, repeatable savings that don’t hurt.

Here’s the promise:

Pick any 3 of the 10 steps → you’ll be close
Pick 5–6 → you’ll hit $500
Do all 10 → you’ll overshoot it

Let’s get into the math.

Table of Contents

1. The $150 Grocery Reset

(Our exact $250/month per-person plan)

Groceries are the single biggest variable expense in most budgets. Unlike your rent, you can manipulate this number immediately. Most families think they are “being careful,” yet they throw away 20% of the food they buy.

We used to spend $900 a month on food for four people. We now spend $600–$650. That is a solid $250/month savings right there. To be conservative for this guide, let’s aim for $150.

The “Reverse Shopping” Method

Most people meal plan, then make a list, then shop. That is the expensive way. It forces you to buy ingredients you don’t have.

Do this instead:

Shop your house first. Open the freezer and pantry. Find the orphaned bag of frozen spinach, the half-box of pasta, the can of chickpeas.
Build the menu around the orphans. If you have pasta, you are having pasta. You are not allowed to buy a “Tuesday Taco Kit” if you have Monday Pasta ingredients at home.
The “One Store” Rule. We stopped going to the “nice” grocery store with the coffee bar. We go to Aldi (or Walmart/Lidl). We buy 90% generic brands.

Proof It’s Sustainable

We still eat well. We eat roasted chicken, tacos, and stir-frys. We just don’t buy $7 cereal or pre-cut fruit. Pre-cut produce is a tax on your laziness.

The Math:

Old Grocery Bill: $800

New Grocery Bill (Generics + No Waste): $650

Total Saved: $150/month

2. The Subscription Massacre

($75–150 instant win)

You have “Zombie Subscriptions.” These are the free trials you forgot to cancel, the streaming service you haven’t watched since Stranger Things ended, or the premium app tier you don’t use.

One-Hour Implementation

Do not rely on your memory. Your memory is trying to protect you from the guilt of spending money.

Open your last 3 months of bank statements and credit card statements.
Highlight every recurring charge under $50.
The Rule of One: You are allowed ONE music service and ONE video streaming service at a time. Rotate them. If you want to watch The Bear on Hulu, cancel Netflix for two months.

The “Gym” Reality Check

If you haven’t been to the gym in 30 days, cancel it. You are paying a “fantasy tax”—paying for the version of yourself you wish you were. Run outside or do YouTube yoga for free until you prove you can stick to a habit.

The Math:

Netflix Premium ($23) + Unused Gym ($40) + Random App ($12)

Total Saved: $75/month

3. Switch Insurance Once

($80–120/month forever)

This is what I call the “Lazy Tax.” Insurance companies count on the fact that shopping for rates is boring. They slowly creep your rate up every renewal period (every 6 months), knowing you won’t leave.

How to do it in 45 minutes

You do not need to call ten companies. Use an aggregator site like The Zebra, PolicyGenius, or Gabi.

Input your current coverage details.
Let them run the comparison against 20+ carriers.
If you find a cheaper rate for the same coverage, buy it. Your new carrier will usually handle the cancellation of the old one for you.

We switched our car and home insurance bundle from a major carrier to a slightly smaller (but A-rated) carrier. We saved $110 a month for the exact same coverage limits.

The Math:

Old Premium: $240/month

New Premium: $130/month

Total Saved: $110/month

4. The Phone Bill Hack Most People Still Haven’t Done

($40–80/month)

If you are paying more than $30–$40 per line for your cell phone, you are overpaying. The “Big Three” carriers (Verizon, AT&T, T-Mobile) charge a premium for their brick-and-mortar stores and massive marketing budgets.

The Fix: Switch to an MVNO

MVNOs (Mobile Virtual Network Operators) lease the exact same towers as the big guys but charge half the price.

Mint Mobile: Uses T-Mobile towers. Plans start at $15/mo.
Visible: Uses Verizon towers. Unlimited data for $25/mo.
Cricket: Uses AT&T towers.

I switched from a $90 Verizon plan to a $30 Mint Mobile plan. I have noticed zero difference in call quality or data speed in my city.

The Math:

Old Plan (2 lines): $140

New Plan (2 lines): $60

Total Saved: $80/month

5. Energy Bill “Set It and Forget It” Tweaks

($40–70/month)

You don’t need to sit in the dark to save money every month on a normal salary. You just need to stop paying for energy you aren’t actually enjoying.

The “Cold Wash” Rule

Heating water accounts for about 90% of the energy used to wash clothes. Modern detergents (like Tide Coldwater or generic equivalents) are chemically engineered to work in cold water. Switch your dial. Your clothes will last longer, too.

The Thermostat Gap

In winter, set your heat to 68°F (20°C) instead of 72°F. Wear a sweater. In summer, set AC to 74°F or 76°F. Every degree you adjust can save 3-5% on your HVAC bill.

Phantom Power

Put your TV, gaming console, and soundbar on a single power strip. Turn the strip off at night. These devices sip power even when “off.”

The Math:

Cold Wash Savings: $15

HVAC Adjustment: $25

Phantom Power: $5

Total Saved: $45/month

6. The No-Eat-Out Rule We Actually Keep

($100–150/month)

“Stop eating out” is standard advice, but it fails because people don’t plan for exhaustion. You don’t order pizza because you love pizza; you order it because you are tired.

The “Emergency Frozen Pizza” Protocol

We keep three high-quality frozen pizzas (cost: $6 each) in the freezer at all times. When we have a terrible day and cannot cook, we make a frozen pizza.

Cost of Domino’s delivery (with tip/fees): $45
Cost of Digiorno: $8

If you swap just one takeout dinner a week for a “frozen convenience meal,” the savings are massive.

The Brown Bag Reality

Buying lunch at work costs $12–$15. Bringing leftovers costs $3. If you do this just three times a week, you save $36 a week.

The Math:

Cutting 2 Takeout Dinners: $80

Bringing Lunch 8 times/month: $80

Total Saved: $160/month

7. Automatic Bank Account Sweeps

(The $100/month you never see)

This is the most powerful psychological trick on the list. If money hits your checking account, you will spend it. You need to kidnap the money before you see it.

Start This Today

Log into your online banking. Set up an automatic transfer for the day after your payday.

Amount: $50 per paycheck (assuming bi-weekly pay).
Destination: A separate High-Yield Savings Account (HYSA) at a different bank.

Because this happens automatically, you will adjust your spending to the remaining balance in your checking account. You won’t miss the $50 because you never really “had” it.

The Math:

$50 x 2 paychecks

Total Saved: $100/month

8. The Cash-Back + Rewards Card Combo Done Right

($50–100/month)

Warning: Only do this if you pay your credit card off in full every month. If you carry a balance, skip this section.

We put every single planned expense (groceries, gas, bills) on a 2% cash-back credit card. We do not use it for extra spending; we use it as a payment method for the budget we already have.

The Stack

Card: Citi Double Cash or Wells Fargo Active Cash (flat 2% back).
App: We use Rakuten for online shopping (Target, Walmart, etc.) to get another 1–10% back.
Receipts: We snap pics of grocery receipts into Fetch. It earns about $5–$10 a month in Amazon gift cards.

If you spend $2,000 a month on household expenses, 2% back is $40 free dollars. Add in Rakuten/Fetch, and you hit $50 easily.

The Math:

Credit Card Rewards: $40

Rebate Apps: $10

Total Saved: $50/month

9. The “Wait 30 Days” for Everything Non-Essential

($60–120/month)

This stops the “Target Effect”—where you go in for milk and leave with a throw pillow and a scented candle.

The Rule

If you want to buy something over $20 that is not food or medicine, you must put it on a “Wait List” on your phone.

You cannot buy it today.
You must wait 30 days.

90% of the time, when I look at the list 30 days later, I don’t even want the item anymore. The dopamine urge has passed. This saves us from at least two or three dumb impulse purchases a month.

The Math:

Avoided “Target Run” fluff: $60

Avoided Amazon gadget: $30

Total Saved: $90/month

10. The Secret $50–100 “Found Money” Bucket

This isn’t about cutting costs; it’s about reclaiming money you are leaving on the table.

Return Your Purchases

How many times have you bought clothes that didn’t fit, threw them in the closet, and missed the return window? Be ruthless. If it’s not perfect, return it immediately.

Sell the Clutter

We aim to sell one thing a month on Facebook Marketplace. An old lamp, a bundle of baby clothes, a video game. It clears the house and funds the savings.

The Math:

Returns processed: $30

One item sold: $30

Total Saved: $60/month

Bonus: The 5-Minute Weekly Routine

You cannot save $500 every month if you ignore your money. Every Friday morning, my husband and I have a 5-minute “Financial Date.”

Check credit card balance.
Check checking account balance.
Update our simple spreadsheet.
High-five. That’s it. Awareness prevents overdraft fees and keeps the goals top of mind.

Bonus: What to do with the $500?

Don’t just leave it in your checking account!

Phase 1: Build a $1,000 “Oh Crap” fund.
Phase 2: Pay off high-interest credit cards.
Phase 3: Build a 3–6 month Emergency Fund in a High-Yield Savings Account (getting 4–5% interest).
Phase 4: Invest in a Roth IRA.

Bonus: Printable $500/Month Tracker

Imagine a simple grid with 10 rows (one for each strategy).

Column 1: Strategy Name (e.g., Grocery Reset)
Column 2: Target Savings (e.g., $150)
Column 3: Actual Savings (Fill this in!)
Total at Bottom: Goal is >$500.

Frequently Asked Questions

Q: Can I really save $500 on a low income ($40k/year)? A: At $40k, $500 is roughly 15% of your take-home pay. It is harder, but possible. You may need to lean heavier on the “Big Three” (Rent/Housing, Transportation, Food). If you can’t hit $500, aim for $250. The habits are identical; the scale just shifts.

Q: What if I have a car payment? A: If your car payment is over $400, it is killing your wealth. I know you don’t want to hear this, but selling the car for a cheaper, paid-off beater is the fastest way to save $500 instantly. If you can’t sell, you must be perfect on the Grocery and Dining Out tips to compensate.

Q: Inflation is crazy right now. Is this $150 grocery savings actually real? A: Yes, because inflation hit name brands harder than generics. The price gap between “Cheerios” and “Toasted O’s” has widened. Cooking from scratch (beans, rice, potatoes, chicken thighs) is still inflation-resistant compared to processed food.

Q: I have kids. They are expensive. A: I have two kids. They are expensive because we make them expensive. Kids don’t need new clothes (ThredUp/Hand-me-downs work). They don’t need juice boxes (water is free). The “No-Eat-Out” rule is actually easier with kids because taking toddlers to restaurants is a nightmare anyway.

Q: Is switching insurance a hassle? A: It takes less than an hour. If someone offered you $120 cash to fill out a form for 45 minutes, would you do it? That’s what this is.

Q: Does the “Wait 30 Days” rule apply to sales? A: Especially to sales. A sale is a marketing tactic to create urgency. If you buy a $100 item for $70 that you didn’t need, you didn’t save $30. You spent $70.

Q: What is a High-Yield Savings Account (HYSA)? A: It’s a savings account at an online bank (like Ally, Marcus, Capital One, SoFi) that pays you 10x–20x more interest than a regular bank (Chase, BoA, Wells Fargo). It is free money. Move your savings there yesterday.

Q: Can I do this if I’m single? A: It’s actually easier. You have full control over the thermostat, the grocery list, and the subscriptions. You don’t have to negotiate with a spouse who wants HBO Max.

Conclusion

Let’s tally up the potential savings from the strategies above:

Grocery Reset: $150
Subs Massacre: $75
Insurance Switch: $110
Phone Hack: $80
Energy Tweaks: $45
Dining Out: $160
Bank Sweeps: $100
Rewards: $50
Wait Rule: $90
Found Money: $60

Total Potential Savings: $920/month

Even if you fail at half of these. Even if you only save $50 on groceries and refuse to switch your phone carrier. Even if you only manage to cut one dinner out a month.

You will still hit $500.

You don’t need to be rich to save money. You just need to stop paying the “inattention tax.”

Pick just three of these strategies right now. Log into your bank account. Make the change. Your future self—sitting on a pile of cash in a High-Yield Savings Account—is already cheering for you.

How to Save $500 Every Month The Simple Way