The Best Ways to Save Money: 24 Smart Spending Habits

According to many personal finance surveys, 70–80% of Vietnamese people admit they often spend more than planned each month. This makes saving money difficult, especially with the rising cost of living. Therefore, finding the most effective ways to save money not only helps you control your finances better but also lays the foundation for big goals such as buying a house, investing, or building an emergency fund.

In reality, saving money doesn't mean living strictly or cutting out all personal needs. By simply changing a few small daily habits, such as reducing unnecessary spending, optimizing food, utilities, and travel costs, you can save a significant amount each month.

This article will share the most effective and easy-to-apply money-saving tips in daily life, helping you reduce spending smartly while maintaining your quality of life. If applied correctly, you can see your savings increase significantly in just a few months.

Tips for reducing monthly expenses

List all expenses before saving

• The first step in personal finance management is to write down all the money you spend each month.

• This includes fixed expenses like rent, electricity, water, internet, insurance, and even small things like coffee, apps, or entertainment services.

• Seeing the entire list helps you understand where your money goes each month, making it easier to determine effective ways to save money.

Cut out non-essential expenses

• Once you have your expense list, categorize them into two groups: essential and non-essential.

• Things like rarely used app subscriptions, redundant entertainment services, or impulse purchases are often areas where you can cut back.

• This is one of the fastest ways to reduce spending because you save money immediately just by stopping.

Contact providers to reduce service costs

• Many people keep the same phone, internet, or TV plans for years without reviewing them.

• Contact your provider and ask about cheaper service plans or new offers.

• By simply switching to a more suitable plan, you can save hundreds of thousands of dong each month while still maintaining essential services.

Use expense management apps

• Some personal finance apps can help track spending, send bill reminders, and analyze spending habits.

• Many apps also suggest the most effective ways to save money based on your spending data.

• When you control your monthly cash flow, you can easily adjust your budget and reduce spending sustainably.

Tip 1: Cook at home to save money

Cook at home instead of eating out

• One of the most effective ways to save money is to limit eating at restaurants or ordering takeout.

• According to many family spending statistics, cooking at home can help reduce food costs by about 20% each month.

• The cost of a meal at a restaurant usually includes rent, service, and profit, so it's always higher than cooking at home.

Bring your lunch instead of buying food

• If you often buy food at work or school, try preparing lunch from home.

• By preparing it the night before, you can significantly save on food costs every day.

• This small habit is a very effective way to reduce daily expenses, especially for office workers.

Cook multiple meals at once to save time

• You can apply meal prep to save effort.

• Prepare multiple portions in one cooking session and then store them in the refrigerator or freezer.

• When needed, just reheat for a quick and money-saving meal.

Prioritize simple and healthy foods

• Homemade meals made from vegetables, beans, and whole grains are often cheaper and more filling than fast food.

• Besides helping to reduce food costs, home-cooked food also limits oil and additives.

• Therefore, this is not only an effective way to save money but also a good habit for long-term health.

Tip 2: Bring drinks from home to save

Bring your own drinks instead of buying out

• One of the most effective ways to save money, often overlooked, is to limit buying bottled drinks.

• Many people spend about 20,000–50,000 VND each time they buy water or coffee, which seems small but can add up to 400,000–600,000 VND per month.

• Prepare a personal water bottle and bring it with you every day to reduce unnecessary spending.

Make your own coffee instead of buying from a shop

• If you have a daily coffee habit, making your own at home can help save a significant amount of money.

• With just a coffee machine or phin and a thermos, you can prepare coffee before going out.

• This is a very common daily spending tip for office workers.

Prepare your favorite drinks from home

• Whether you like iced tea, smoothies, juices, or soft drinks, preparing them at home is much cheaper than buying them at a store or vending machine.

• You can also control sugar levels and ingredients better.

Customize your drink flavors

• If you like caramel, vanilla, or mocha flavored coffee, buy syrups and cream to mix at home.

• This way, you can save money while still enjoying your favorite drinks.

• At the same time, this is also a smart spending habit that helps reduce small but recurring daily expenses.

Tip 3: Shop with a list to avoid overbuying

Make a list before shopping

• Before going to the supermarket or market, take a few minutes to write down what you need to buy.

• This helps you know exactly what you need and avoid buying unnecessary items.

• This is an effective way to save money because it helps control spending habits from the start.

Check your pantry before shopping

• Before making your list, check your fridge and pantry to see what you're missing.

• This helps avoid buying duplicates of food you already have at home.

• This is also a family expense management tip that helps reduce food waste.

Only buy what's on your list

• When at the store, try to stick to your prepared shopping list.

• Impulse purchases often increase the total bill without being truly necessary.

• This habit helps reduce monthly expenses significantly.

Only change when there are reasonable offers

• If a similar product is on sale, you can flexibly substitute it.

• For example, buying apples instead of pears if they are cheaper but still meet your needs.

• However, avoid impulse purchases, as this is a common reason why many people exceed their budget.

Tip 4: Hunt for promotions when buying groceries

Look for promotions before shopping

• Before going to the market or supermarket, check promotion flyers, store websites, or shopping apps.

• Many supermarkets often have weekly or daily discounts, helping you buy essential products at a lower price.

• This is an effective way to save money if you plan your shopping in advance.

Use discount codes and coupons

• Look for coupons, discount codes, or member offers for the products you need.

• However, coupons should only be used for truly essential items, avoiding impulse purchases just because there's a promotion.

• This habit helps reduce spending smartly without increasing the quantity of items purchased.

Buy in bulk when on sale

• For products that are not easily perishable like rice, noodles, canned goods, or toilet paper, you can buy more when they are on sale.

• The conditions are that you have storage space and are sure to use them in the near future.

• This is a family spending saving tip that many people apply to reduce long-term costs.

Prioritize seasonal produce

• Seasonal vegetables and fruits are usually cheaper due to abundant supply.

• Conversely, food that needs to be imported or transported long distances often has higher prices.

• Therefore, buying seasonally is a very effective way to reduce food costs.

Choose generic brand products

• Many supermarkets have their own private labels or generic products with quality comparable to famous brands.

• The prices of these products are often significantly lower.

• This is a money-saving tip when shopping that still ensures daily needs are met.

Tip 5: Differentiate between needs and wants when buying

Identify what is a true need

• Before spending, ask yourself: is this item truly necessary?

• Items like study equipment, work supplies, or essential household items are generally considered needs to be purchased.

• For example, if you need a laptop for work or study, buying one is reasonable, but you should still look for the best price or discounts to save money.

Carefully consider items that are merely wants

• Some items are not truly essential but are still appealing, such as new clothes or decorative items.

• In this case, ask yourself: could this money be used for something more important?

• Thinking before buying is an effective way to save money, helping you avoid impulsive spending decisions.

Avoid unnecessary expenses

• If you already have a similar item at home, consider very carefully before buying more.

• For example: buying a new pair of shoes just because they look nice, even though you have a similar pair in your closet.

• This type of spending is often the reason why personal budgets are exceeded.

Develop the habit of pausing before paying

• Take a few seconds to think before making a purchase decision.

• Clearly distinguishing between needs – wants – unnecessary spending helps you manage your personal finances better.

• This is also an important foundation for building sustainable money-saving habits in daily life.

Tip 6: Reduce spending on cigarettes and alcohol

Cut back on smoking to save money

• Cigarettes are a small expense that accumulates significantly over time.

• If you smoke one pack a day, the total cost can amount to tens of millions of VND per year.

• Therefore, quitting smoking or gradually reducing the frequency is an effective way to save money while also improving long-term health.

Limit spending on alcohol

• Many people don't realize that frequent social gatherings or drinking also cause expenses to rise quickly.

• Reducing the number of times you drink alcohol each week or choosing more economical options can significantly help reduce spending.

• This is also a healthy spending habit, good for both finances and health.

Avoid activities that easily lead to financial loss

• Some activities like gambling or games of chance can make you spend more than intended.

• Most participants generally lose more money than they earn in the long run.

• Therefore, limiting or stopping these activities is an important step in personal spending management.

Replace with more positive habits

• When you reduce these expenses, you can use that money for savings, investments, or healthcare.

• Many people realize that just changing a few small habits can significantly reduce monthly spending.

• This is one of the sustainable ways to save money because it directly impacts recurring daily expenses.

Tip 7: Pay with cash to control spending

Using cash helps control spending better

• When you pay with cash, you will feel the value of the money you are spending more clearly.

• The act of taking money out of your wallet often makes many people think more carefully before buying.

• This is an effective way to save money because it helps limit impulsive purchasing decisions.

Paying with cash helps stick to a budget

• If you only carry a certain amount of money when you go shopping, you will find it easier to control your budget.

• When your wallet is empty, you are forced to stop instead of continuing to buy more.

• This method is very useful for those who want to reduce monthly spending.

Limit reliance on credit cards

• Swiping cards or paying through apps often makes users spend more easily without feeling the amount of money spent.

• If you have high-interest credit card debt, switching to cash spending will help avoid incurring more debt.

Prioritize using money to reduce debt first

• If you have credit card debt, you should use cash to pay down the debt instead of spending more.

• Reducing debt helps you save on interest in the long run and improve your personal financial situation.

• This is an important step in managing expenses and building healthy financial habits.

Tip 8: Pay off high-interest credit card debt

Prioritize paying off high-interest debt first

• When managing personal finances, high-interest credit card debt should be addressed first.

• Credit card interest rates are often much higher than other loans, so if the repayment period is extended, the interest amount will increase rapidly.

• Focusing on paying off this type of debt is an effective way to save money in the long run.

Allocate a fixed portion of your budget to debt repayment

• Allocate a portion of your income each month to pay extra towards credit card debt.

• You can start by reducing unnecessary expenses and transferring that money to debt repayment.

• This method helps reduce the total interest paid over time.

Be patient, as financial benefits will come later

• In the initial stage, you might not immediately see clear benefits in your monthly budget.

• However, after 6 months to several years, when the debt is significantly reduced, you will feel a lighter financial burden.

• This is an important step to build a stable financial foundation.

Reduce debt to increase savings capacity

• Once high-interest debt is paid off, the money previously used for interest payments can be redirected to savings or investments.

• This helps you accelerate your future financial accumulation.

• Therefore, addressing debt early is an important part of a smart spending reduction and money management strategy.

Tip 9: Use Wi-Fi to reduce data costs

Prioritize Wi-Fi over mobile data

• Check your phone settings to ensure your device automatically connects to Wi-Fi when available.

• This helps reduce the amount of mobile data you use each month.

• By using less data, you can switch to a cheaper plan, which is an effective way to save money on phone costs.

Monitor monthly data usage

• Many people subscribe to large data plans but actually use very little.

• Check your mobile data usage statistics on your phone to see how much you actually use.

• This helps you optimize your plan and reduce monthly expenses.

Consider pay-as-you-go data plans

• Some carriers offer plans that charge based on actual GB of data used.

• If you frequently use Wi-Fi at home or work, this type of plan can significantly reduce your monthly data costs.

• However, compare it carefully with your current plan to choose the most cost-effective option.

Utilize Wi-Fi in frequently visited places

• Use Wi-Fi at home, the office, cafes, or school whenever possible.

• This not only helps reduce mobile data consumption but also optimizes long-term telecommunication costs.

• This is a simple but very effective money-saving tip that many people often overlook.

Tip 10: Cut cable TV to save money

Cancel cable TV if rarely used

• Many families still pay for cable TV even if they don't watch it regularly anymore.

• With the popularity of online streaming services, you can watch similar entertainment content at a lower cost.

• Cutting cable TV is an effective way to save money, potentially reducing entertainment costs significantly each month.

Check currently subscribed streaming services

• Many people subscribe to multiple streaming platforms but only use a few services.

• Review the streaming services or entertainment apps you are paying for monthly.

• Canceling little-used services is a simple way to reduce monthly expenses.

Cancel landline if no longer needed

• If you are still paying for a landline phone, consider discontinuing the service.

• Nowadays, mobile phones are sufficient to meet most daily communication needs.

• This helps reduce a fixed expense in the family budget.

Optimize entertainment and communication costs

• Choose the services you actually use instead of keeping them all.

• Simplifying service packages helps with more effective personal spending management.

• This is an important step in a long-term money-saving strategy.

Tip 11: Cancel unnecessary service subscriptions

Review all paid services

• Beyond cable TV, many people are also paying for memberships and monthly subscription services.

• For example, gyms, entertainment apps, food delivery services, or paid software.

• Check if you actually use them regularly. If not, canceling subscriptions is an effective way to save money.

Keep only truly valuable services

• If a service provides clear benefits and you use it regularly, you can continue to maintain it.

• However, when you want to reduce spending and stabilize your finances, you can temporarily pause some non-essential services.

• This helps reduce recurring monthly expenses.

Try renegotiating service costs

• Before canceling, you can contact the provider and inform them that you are considering discontinuing the service.

• In many cases, they will offer a lower price or new promotional offers to retain you as a customer.

• This is a money-saving tip that few people utilize.

Check bank and credit card statements

• Many subscription services are automatically debited each month, so you might forget you're paying for them.

• Review your bank or credit card statements to identify charges for services you no longer use.

• This helps prevent losing money on forgotten or unnecessary services.

Tip 12: Negotiate rent

Talk to your landlord to reduce rent

• If you are renting, you can speak directly with your landlord about the possibility of reducing rent.

• Finding new tenants often takes time and effort, so many landlords are willing to slightly reduce rent to retain long-term tenants.

• Even a small reduction each month can be an effective way to save money.

Provide valid reasons when negotiating

• When discussing, you can mention that you are considering moving to a less expensive place.

• This might make the landlord consider adjusting the rent to keep you.

• In some cases, you can save an additional amount on rent each month through negotiation.

Consider refinancing if you have a mortgage

• If you have a mortgage, check your current loan interest rate and compare it with other banks.

• When market interest rates fall, refinancing your home loan can help reduce monthly payments.

• This is a long-term cost-saving strategy for homeowners.

Compare multiple options before deciding

• Contact your current bank and other banks to compare interest rates, fees, and loan conditions.

• If you choose the right time and interest rate, you can significantly reduce your monthly mortgage payments.

• This is an important step in managing expenses and optimizing housing costs.

Tip 13: Choose cheaper accommodation to save money

Move to a lower-cost accommodation

• If rent or mortgage payments take up a large portion of your income, consider finding cheaper accommodation.

• You don't necessarily have to choose an ideal place; just one that fits your basic needs and current budget.

• This is an effective way to save money because housing costs are often the largest monthly expense.

Share accommodation to split housing costs

• Finding a roommate or shared living arrangement is a common way to reduce rent.

• By sharing rent, utilities, and other living expenses, each person's total expenditure will significantly decrease.

• However, research carefully and choose a suitable roommate to avoid potential issues.

Consider living with family for a short period

• If you want to quickly reduce expenses to save or pay off debt, you can consider living with family for a while.

• This helps significantly reduce monthly housing and living costs.

• Many people use this period to accelerate savings or stabilize their finances.

Maintain financial independence

• If you live with family, you should still pay your personal expenses like laundry, food, or contribute a small amount to household expenses.

• This helps you maintain financial discipline and not be entirely dependent on your family.

• This is a practical step to improve personal finances in the short term.

Tip 14: Bundle insurance to reduce costs

Bundle multiple types of insurance with the same company

• If you have car insurance and home insurance or renter's insurance with different companies, consider bundling them.

• Many insurance companies offer discounts when customers purchase multiple insurance policies at once.

• In many cases, bundling insurance can help reduce costs by about 10–25% per year.

Contact insurance companies to compare

• Call your current insurance company and ask about their bundling program.

• Also, contact other insurance companies to compare prices and benefits.

• Comparing multiple options helps you find the most cost-effective insurance package.

Don't assume bundling is always cheaper

• While bundling insurance often leads to discounts, it's not always the cheapest option.

• In some cases, purchasing each type of insurance separately from different companies might be more economical.

• Therefore, compare both bundled and separate package prices before deciding.

Review insurance regularly

• Insurance costs can change over time.

• Review your insurance policies once a year to ensure you are still on the most suitable plan.

• This is a smart budgeting tip that helps reduce large expenses in the long run.

Tip 15: Use public transport to save money

Compare the cost of personal vehicles and public transport

• If you regularly drive to work or school, try calculating your total monthly costs.

• Common expenses include fuel, parking fees, maintenance, and repairs.

• When compared to the cost of buses, trains, or other public transport, many people realize this is an effective way to save money.

Use public transport for daily commuting

• For those living in densely populated areas, buses or trains are often more economical choices.

• You can significantly reduce monthly commuting costs by regularly using public transport.

• Besides saving money, this method also helps reduce traffic congestion and protect the environment.

Consider cycling or walking

• If the distance from home to work or school is not too far, cycling or walking is also a good option.

• This helps reduce commuting costs to almost zero.

• At the same time, it also helps improve health and increase daily physical activity.

Consider reducing or selling your car if rarely used

• If you rarely use your personal car after switching to public transport, consider selling it to reduce maintenance and registration costs.

• The money from selling the car can be used for savings or investments.

• This is a drastic but very effective step in a long-term cost-cutting strategy.

Tip 16: Carpool to reduce costs

Carpool with colleagues

• If you must drive to work or school, consider carpooling with colleagues or friends who live nearby.

• When multiple people use the same car, the costs of fuel, parking, and maintenance are shared.

• This is an effective way to save money on daily commuting costs.

Schedule alternating drivers

• A common method is for each person to take turns driving daily or weekly.

• For example, each person is responsible for driving a few days a week.

• This helps everyone share the costs and effort of commuting.

Split fuel costs if only one person drives

• If only one person has a suitable car, the others can contribute to fuel and parking costs.

• Each person pays a small part, but the total cost for the driver will significantly decrease.

• This is a very practical way to reduce monthly commuting costs.

Reduce commuting and car maintenance costs

• When carpooling, the number of individual car trips decreases, so fuel consumption and car wear and tear also decrease.

• This helps save not only on fuel but also on long-term car maintenance and repair costs.

• Therefore, carpooling is a solution for saving money and optimizing travel costs for many people.

Tip 17: Car maintenance to save on fuel

Check tire pressure regularly

• Incorrect tire pressure causes the car to consume more fuel.

• Just by maintaining the recommended tire pressure, you can save about 2 cents per gallon of fuel.

• This is an effective and easy way to save money.

Regular car maintenance

• Regular maintenance and engine checks help the car operate stably and save more fuel.

• According to car performance studies, proper maintenance can reduce fuel costs by about 13 cents per gallon.

• Besides saving fuel, this also extends the lifespan of the car.

Use the correct type of engine oil

• Using engine oil that meets the manufacturer's standards helps the engine operate more efficiently.

• This can help save approximately 3–6 cents per gallon of fuel.

• This is a car operating cost reduction tip that many people often overlook.

Optimize long-term fuel costs

• For example, if you use about 38 liters of gasoline per week, these small adjustments can help save over $100 per year.

• Such simple maintenance habits help reduce long-term travel costs.

• This is also an important part of saving money and personal expense management strategies.

Tip 18: Adjust temperature to reduce electricity bills

Adjust temperature appropriately when at home

• There’s no need to keep the temperature perfect at all times, just comfortable enough.

• In cold weather, you can lower the air conditioner or heater by a few degrees and wear warmer clothes.

• In hot weather, raise the air conditioner temperature slightly and use a fan.

• This is an effective money-saving tip to reduce monthly electricity costs.

Set temperature when no one is home

• When you leave, you can adjust the temperature to reduce electricity consumption.

• For example, about 18°C in cold weather and 27°C in hot weather is a reasonable level to save energy.

• Another option is to use a smart thermostat to automatically adjust the temperature.

Use ceiling fans for air circulation

• Ceiling fans help air circulate better in the room.

• When the air is evenly distributed, the air conditioning or heating system doesn't need to work as hard.

• This helps reduce cooling and heating costs in the long run.

Utilize natural ventilation when the weather is pleasant

• When the weather is not too hot, turn off the air conditioner and open windows for natural airflow.

• Combine with electric fans or ceiling fans to keep the space cool.

• This is a simple electricity-saving tip but can significantly reduce electricity bills every month.

Tip 19: Use energy-efficient appliances

Replace incandescent bulbs with LED lights

• A simple yet very effective change is to switch to using LED bulbs.

• LED lights consume less electricity and have a longer lifespan compared to traditional incandescent bulbs.

• Replacing all the light bulbs in your home can help significantly reduce your electricity bill each year, this is an effective money-saving tip.

Choose energy-saving home appliances

• When buying new appliances such as a refrigerator, washing machine, air conditioner, or water heater, prioritize products with energy-saving certifications.

• These appliances typically consume less electricity during use.

• As a result, you can reduce the total electricity costs in your household.

Understand that initial costs may be higher

• Energy-efficient appliances sometimes have a higher initial purchase price than conventional products.

• However, due to more efficient electricity usage, monthly operating costs are lower.

• In the long term, this is an investment that helps reduce living expenses.

Replace appliances according to a suitable plan

• Depending on your budget, you can replace all appliances at once to optimize electricity savings.

• Alternatively, you can gradually replace individual appliances as needed to avoid financial pressure.

• Whichever method you choose, using energy-efficient appliances is still a long-term solution for reducing household electricity costs.

Tip 20: Unplug devices when not in use

Avoid "phantom" power draw from devices

• Many electronic devices still consume power even when turned off if they remain plugged in.

• This power consumption is often referred to as vampire load.

• Unplugging devices when not in use is an effective money-saving tip, helping to reduce electricity bills annually.

Unplug rarely used devices

• Devices such as TVs, game consoles, speakers, phone chargers, or microwaves often still consume power in standby mode.

• Unplug these devices when not in use for extended periods.

• This small habit can help significantly reduce household electricity costs.

Use smart power strips

• If unplugging each device is inconvenient, you can use smart power strips or power strips with switches.

• These devices allow you to completely turn off power when not in use.

• This is a simple solution to help reduce unnecessary power consumption.

Protect devices from electrical faults

• Unplugging devices or using surge protectors also helps protect devices from sudden voltage spikes.

• This helps reduce the risk of device damage and avoid repair costs.

• Therefore, this is not just an electricity-saving tip, but also a way to protect household appliances long-term.

Tip 21: Take quick showers to reduce water bills