Fresh Approaches to Saving Money in 2025

The start of a new year is the perfect time to look at your finances and make a saving plan for the new year. While many people make a New Year’s resolution to save more money, it’ll take more than a self-promise to make that happen. There are some unique ways to save money, some of which you might not have thought of before.

Use sustainable living as a financial strategy

You don’t have to live like a hermit or go completely “off-grid” to live more sustainably. 

Use energy-efficient appliances

Switching to energy-efficient appliances would be a long-term investment that can pay for itself by saving money on utility bills.

Products with Energy Star ratings use less energy.

Heat pumps provide energy-efficient heating and cooling. Federal tax credits can reduce the cost of buying and installing a heat pump by 30% (up to $2,000 maximum).

Our advice is to ask your local appliance and heating and cooling experts regarding the appliances and pumps that make the most sense.

If your home has an attic, make sure that it’s insulated to save on heating and cooling bills. Installing storm doors and windows can also make your home more efficient. There are also less-expensive ways to improve your home's energy efficiency as well, such as weather-stripping around doors and windows.

Use reusable items

There are many ways to cut back on spending while reducing waste. For example:

• Put rechargeable batteries in your remote controls and other devices, such as toys. While initially more expensive than regular batteries, these can save you money over time.
• Use reusable water bottles, coffee mugs, and food containers rather than disposable bottles and plastic sandwich bags or wraps.
• Try cloth towels instead of paper towels.

The Internet is full of advice on do-it-yourself repairs, and step-by-step visual instructions are often available on YouTube. While you could save money by replacing energy-intensive appliances, such as washers, dryers, and furnaces, with energy-saving models, you might try to repair less complicated items such as a coffee maker or a blender.

Turn household waste into savings

Even a small garden can reduce your grocery costs while providing you with fresh and nutritional food to eat. Anything you don’t eat you could share with family and friends.

Composting your yard clippings, leaves, and food waste can help you save money on fertilizers.

Many food containers from the grocery store could be washed and reused, which reduces waste and your need to buy empty storage containers.

Secondhand stores can be great ways to save money on clothes. If you’ve outgrown or don’t need any slightly worn clothing items, you might consider selling them at the store.

Consider your recyclable and reusable items. Take a survey of your home and search for any items you don’t really use or need anymore. Instead of tossing them out, try to sell or recycle them. 

Old computers, smartphones, and storage devices that still work could be sold or traded away (after you scrub your data from them). Metal objects and old appliances could be recycled.

Invest in preventative maintenance

The old saying that an ounce of prevention is worth a pound of cure certainly applies when it comes to routine and preventive maintenance of your home, your vehicles, and your body itself.

Read the owner’s manual of your appliances and vehicles and follow the recommended maintenance schedule. This can help you avoid costly repairs in the long run, especially if there’s any maintenance that you could do yourself.

Things like changing your car’s motor oil, your furnace or heat pump’s air filter, and keeping your tools and appliances in good condition are relatively simple tasks that don’t cost much, especially compared to your cost of repairing or replacing them.

The same is true for your physical health. Annual physicals should be covered by your health insurance, and they give your doctor a baseline to measure any changes in your health. Many lives have been saved (as well as dollars) by a routine checkup catching something before it became a more serious problem.

Cancel or rotate your subscriptions

Take a close look at any streaming subscriptions you have. Many people sign up for a free trial of a streaming service, to binge-watch a particular show, then they forget about it for a while.

If there are any services you don’t use very much, or if you’re waiting for a new season of a particular show to start, you could always cancel a subscription for a while and then sign up again when new episodes are available.

Some services let you share your membership with a friend or family member for a small fee. This can be cheaper than each of you buying a membership separately, as long as you abide by the terms and conditions.

 

Make things at home instead of ordering out

A morning coffee run on your way to work, buying your lunch, and dining at restaurants or using take out for dinner can all add up to significant expenses over time. 

Add up how much money you could save by brewing your own coffee at home (and bringing a thermos to work), and a homemade lunch. Buying groceries and cooking them at home can also save you a considerable sum rather than restaurants, take-out, and food delivery. It’s ok to treat yourself from time to time, but it’s more important to know how much you’re spending!

Take a close look at your saving & borrowing habits

Build or boost your emergency fund

According to a study by Fidelity Investments, unexpected expenses moved up to the top financial concern for Americans in 2025. Building an emergency fund can provide a financial cushion, ensuring you’re prepared to handle the unexpected without derailing your other financial goals.

Start by building a small cushion and aim to save three to six months of living expenses. Begin with a modest goal, such as saving $500, and gradually increase it until you’ve saved enough for a few months’ worth of expenses. Automate your savings by setting up regular transfers from your checking account to a savings or money market account, or arrange with your employer to have part of your paycheck directly deposited into a separate account. Additionally, reduce nonessential spending by cutting back on areas like dining out, impulse purchases or unused subscriptions.

If you were saving up for a major purchase, such as the down payment on a home, you might put some of your funds in either a money market account or a CD to earn more interest while you save.

You could also use a CD Ladder where you put your money into CDs with different maturity dates so you can access your funds at different points throughout the year.

Tackle your debt strategically

Choose a strategy that works for you, whether it’s the avalanche method, which focuses on paying off high-interest debt first, or the snowball method, where you start with the smallest balance for quick wins. While making minimum payments on your debts, concentrate any extra money on your target debt. It’s also important to avoid adding new debt by sticking to a cash-based budget and resisting nonessential purchases. Even if credit is available, using it can lead to higher costs over time due to accumulating interest.

It’s also worthwhile to look at whatever outstanding loans you may have and how much interest you’re paying on each one. Credit cards, for example, typically have higher interest rates than many other loans. 

If you’re carrying any credit card debt, you might focus on paying it off as soon as possible. You might also search for a card with a lower interest rate, or consolidate your loans with something like a home equity line of credit (HELOC). You could use it to pay off your debts, finance a major purchase, or spruce up your home.

Give your credit score a boost

Pay your bills on time by setting up reminders or enrolling in autopay to avoid missed payments, which can significantly impact your credit score. Experts recommend keeping your credit utilization low by aiming for a ratio of 30% or lower. It’s also a good idea to check your credit report annually at annualcreditreport.com to spot and dispute any errors. High credit utilization can signal financial strain to lenders and potentially lower your credit score.

Leverage technology for smarter saving

You can use all kinds of budgeting apps on your phone or a computer. Many of them are free or offer both free and paid versions, so it should be easy to find one that suits your needs.

Any kind of budgeting software will give you a chance to analyze your spending and saving habits, and by using them on a regular basis, you can remind yourself to avoid unnecessary spending.

Here are a few examples of popular budgeting apps:

YNAB

YNAB is short for “You Need a Budget.” It uses a zero-based budgeting system where every line item in your budget starts at zero. For every paycheck, you use the app to indicate how every dollar will be used for spending, saving, and debt payments. You could link your banking, credit cards, and other financial accounts to the app. It offers a 34-day free trial and a subscription plan of $14.99 per month or $109 paid annually.

Goodbudget

With Goodbudget, you manually enter your income, debts, and account balances into different categories called “envelopes.” It does not link with your bank, credit card, and other accounts. A free version allows one account, a limited number of envelopes, and two devices (phone or computer). The premium version offers unlimited envelopes and accounts, plus up to five devices, for $10 per month or $80 per year.

Empower personal dashboard

This free dashboard, available through a computer, tablet, or phone app, is formally known as Personal Capital. You can link it to your banking, credit card, retirement, and other accounts to help you keep track of your funds. It’s primarily used for tracking investments rather than budgeting.

PocketGuard

With the free version of PocketGuard, you can link the app to your bank accounts, credit cards, loans, and investments. The app can show how much money you have to spend from each paycheck after accounting for your monthly bills and debt payments. 

With the paid version, PocketGuard Plus, you can import and export all your financial transactions. You can also put together a debt payoff plan. It costs $12.99 per month or $74.99 per year.

Honeydue

Honeydue is a free financial app for couples to keep track of their finances. Both partners can link their bank accounts, credit cards, debts, and investments. It can automatically categorize your expenses, or you could create your own categories and choose how much information you share with your partner. You can also use it to set up monthly spending limits, with alerts for when you’re close to reaching them.

Progress, not perfection

Remember, resolutions are about making meaningful progress. Even small changes, like saving an extra $20 per week or paying off one credit card, can make a big difference by the end of the year. The key is to stay focused on your progress and celebrate the milestones along the way.

We're here to help you improve your finances

If you need help with saving money in 2025, please contact us or visit one of our locations in Iowa, Minnesota, and South Dakota. You might also check out our blog for advice on family finances, finding financial freedom, and financial habits that could be holding you back.