How to stop spending money and free up your budget

Smart, sustainable ways to cut costs to give yourself a little financial breathing room

With prices rising and economic uncertainty still looming, many Americans are feeling the pressure and are worried about paying for basic expenses. Indeed, more than 70 percent say they’re stressed about their personal finances — and two-thirds point to the new tariff wars as the main source of their concern.

Creating space in your budget can relieve financial pressure and give you more control over your money. No matter your current situation, intentionally cutting back on spending opens the door to opportunities that truly align with what matters most to you.

The goal isn’t to never spend money. It’s to spend intentionally, which means aligning your spending with your values and recognizing that many of your deepest sources of joy — connection, creativity, purpose — aren’t things you can buy.

Of course, cutting back is easier said than done. But with some adjustments to your mindset and a few fresh strategies, it’s possible to make meaningful changes without feeling like you’re sacrificing everything.

Change your mindset

Depending on how much wiggle room you have in your budget, reducing your spending can sometimes feel almost punitive – like you’re being forced to give up the little comforts that make daily life feel manageable.

Rather than framing ‘reducing expenses’ as a deprivation, see it as micro-moments of taking control.

That control, she notes, comes from making financial choices that coincide with your core values and cherished goals — whether that’s supporting your family, paying down debt or working to achieve financial independence. When your spending decisions reflect what matters most to you, they feel less like sacrifices and more like steps toward something significant.

“Behavior change is identity change,” says Tim Klecker, a goals coach at U.S. Bank. “Once you adopt new behaviors that seek to serve your future goals, they become part of your routine. Once something is part of your routine, it becomes strange (and even off-putting) not to do it. Focus on establishing the proper habits and mindsets that allow you to grow into the person you hope to become.”

Before reviewing your finances, take a moment to center yourself with a few deep breaths or a quick walk. Financial anxiety can trigger a fight-or-flight response, narrowing our focus and making it harder to see solutions. Grounding yourself opens space for clearer solutions.

Do a spending audit

Before you can reduce your spending, you need to understand where your money is actually going. A simple, eye-opening first step is to review your credit card and bank statements from the past month. As you look through those transactions, ask yourself: Was this worth it? Would I spend that money again today?

Chances are, you’ll find at least a few expenses that feel unnecessary — or even regrettable. Maybe you’re subscribed to three streaming services but only use one. Maybe you ordered takeout on a weeknight, spent $40 on it and didn’t even enjoy the meal.

These aren’t just budget leaks — they’re opportunities to save. Identifying purchases that don’t add value can be extremely motivating.

“Being able to spend when we want can feel empowering,” says Klecker. “But doing so at the expense of the future can lead to eventual frustration and even bitterness.”

Cut costs across key categories

Once you’ve identified where your money is going, look at the major categories where small changes can add up — without dramatically changing your lifestyle. Here are a few key areas where you might find hidden savings:

• Utilities. Utility bills can fluctuate month to month. But sometimes those spikes are preventable. Try lowering your thermostat by a few degrees in the winter, run your laundry with cold water (many detergents are designed to work with cold water), unplug electronics when not in use and check for air leaks around windows and doors that may be driving up your heating or cooling bills. Call your utility provider directly — many offer energy audits or local tips based on your area and climate.
• Transportation. According to the U.S. Department of Transportation, Americans spend more than $12,000 per year on transportation, making it one of the highest consumer expenditures. Even if you’re not ready to ditch your car entirely, there are plenty of ways to reduce costs, such as using public transit a few days a week (if that’s available to you), setting up a carpool with coworkers or school families, joining a gas rewards program, or filling up at warehouse clubs or grocery chains with loyalty discounts.
• Groceries. According to the USDA, grocery prices continue to climb, making it hard for people living paycheck to paycheck to afford basic necessities. Small shopping tweaks can make a big difference. For example, try buying in bulk when it makes sense — non-perishable food items, cleaning supplies and paper products are often 25 percent cheaper. You can also plan meals ahead to avoid impulse buys, use coupons and shop store brands that are often just as good but cost less than name brands. 
• Entertainment and travel. Experiences like dining out, going to concerts or taking vacations can be exciting — but expensive. If you’re living paycheck to paycheck, consider exploring local, low-cost fun instead. Follow community orgs, recreation departments and local venues on social media to find free or cheap events. You can also create your own bucket list of affordable experiences near you, like hiking trails, museums with free admission days or pop-up markets. “Not everything fun has to be expensive,” Klecker adds. “It may require a bit of researching — but make that search part of the fun. Endeavor to do something new rather than something familiar.”

Don’t try to change everything at once, since that might not be sustainable. The goal isn’t perfection; it’s progress.

Check out more from this series to get information on budgeting, setting financial goals and prioritizing essential expenses.