How to Save $1,000 a Month: These Money Moves Add Up
- With a few new habits, you might save $1,000 a month.
- Changing how you shop, negotiating your bills, increasing your income, and consolidating high-interest debts could offer significant savings.
- Saving $1,000 a month could help you become debt-free much sooner.
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As you chip away at your debt, it can be beneficial in other ways, too, to save money in your everyday life. And the more money you can save, the more money you can allocate to debt relief. An extra $1,000 a month could make a big difference in getting closer to financial freedom.
Let’s look at some ways to increase savings to $1,000 a month.
Set a Budget
Do you know how much you spend in each spending category? Many people don’t.
A budget gives you a blueprint for using your money more effectively. By carefully reviewing your bank and credit card statements, you can determine whether you're overspending and figure out whether you could save by altering your habits. You may even find you can trim several hundred dollars from your monthly spending, and allocate more money to getting out of debt sooner.
Change How You Shop for Groceries
You can sometimes cut your grocery spending significantly by making changes to how you shop. If you're not already shopping at low-cost retailers like Aldi or Grocery Outlet, this is one change that can have a significant impact on your wallet.
Another strategy to help you save more is to plan your shopping trip well before you fill your cart. Take a look at the weekly store flier to see what’s on sale, and plan your meals around those items. Then make a list and stick to it.
Cancel or Limit Subscriptions
If you pay for multiple streaming or other subscriptions, canceling some of them could help you in your quest to save $1,000 a month. The costs of these services continue to rise, making it harder to reach your savings goals. You can also rotate your subscriptions. If you're on a monthly plan, pick one service to use at a time, and pause the others. This way, you can still prioritize entertainment without overspending.
Make These Small Changes and Watch the Savings Add Up
There are many small changes you can make that can result in considerable savings when added together.
Use promo codes when shopping online
Every time you buy online, pause. First, do an online search for “[website] coupon code.” You never know if taking a moment to do that could save you a few bucks on something you were going to buy anyway.
Many retailers offer promo codes or coupons that provide a discount on your shopping bill. Saving an extra $5-$10 on an online order may not feel like much, but it all adds up.
You can use online coupon sites to find coupon codes. Some companies send you a promo code in exchange for signing up for their newsletter. It’s easy to unsubscribe if you don’t actually want to keep getting the newsletter.
Use cash back apps and browser extensions to earn cash rewards
Another small step to help you reach your $1,000 savings goal is to use cash back apps and browser extensions. These digital tools reward you for shopping with participating retailers.
Some popular cash back apps and browser extensions include:
Ibotta
PayPal Honey
Rakuten
Upside
Look for Opportunities to Earn More Money
If you're trying to free up an extra $1,000 in savings each month to put toward debt payoff, increasing your income can help. Consider a side hustle or part-time job to boost your earnings.
Another way to earn more is to sell unwanted items around your home. You can advertise in local buy-and-sell groups on social media. Finally, if you have extra space and are open to having a roommate, renting out a room in your home is another way to increase your earnings.
Negotiate Your Bills
Did you know that you can negotiate some bills? For example, cable, home internet, and mobile phone service bills are all negotiable. Ask your service providers whether they're willing to discount their services. If the answer is no, consider asking to switch to a cheaper plan. Downgrading your service may be worth the savings.
Consolidate High-Interest Debt
If you have multiple high-interest debts, there may be little room in your monthly budget to make a significant dent in repaying your debts. But debt consolidation could help you save a considerable amount by combining your loans into one payment, which may be lower. A debt consolidation loan can be a great path toward credit card debt relief, especially if you can land a loan with a lower interest rate as well.
See Much You Can Save
It takes time to make significant financial changes. But you don't have to do it overnight. If you're willing to make adjustments to how you manage your money and live your life, you may be able to save $1,000 a month, which can make getting out of debt more attainable.
Get Help With Your Debt if You Need It
If you need help managing your debt, consider working with a debt relief company. An expert from Freedom Debt Relief can evaluate your debt and let you know if you’re a candidate for debt settlement. That’s negotiating with your creditors to reduce the amount you owe. You don't have to navigate your debt relief journey alone.
A look into the world of debt relief seekers
We looked at a sample of data from Freedom Debt Relief of people seeking the best debt relief company for them during December 2025. This data highlights the wide range of individuals turning to debt relief.
Credit card balances by age group for those seeking debt relief
How do credit card balances vary across different age groups? In December 2025, people seeking debt relief showed the following trends in their open credit card tradelines and average credit card balances:
Ages 18-25: Average balance of $9,117 with a monthly payment of $272
Ages 26-35: Average balance of $12,438 with a monthly payment of $375
Ages 36-50: Average balance of $15,436 with a monthly payment of $431
Ages 51-65: Average balance of $16,159 with a monthly payment of $524
Ages 65+: Average balance of $16,546 with a monthly payment of $488
These figures show that credit card debt can affect anyone, regardless of age. Managing credit card debt can be challenging, whether you're just starting out or nearing retirement.
Personal loan balances – average debt by selected states
Personal loans are one type of installment loans. Generally you borrow at a fixed rate with a fixed monthly payment.
In December 2025, 44% of the debt relief seekers had a personal loan. The average personal loan was $10,718, and the average monthly payment was $362.
Here's a quick look at the top five states by average personal loan balance.
| State | % with personal loan | Avg personal loan balance | Average personal loan original amount | Avg personal loan monthly payment |
|---|---|---|---|---|
| Massachusetts | 42% | $14,653 | $21,431 | $474 |
| Connecticut | 44% | $13,546 | $21,163 | $475 |
| New York | 37% | $13,499 | $20,464 | $447 |
| New Hampshire | 49% | $13,206 | $18,625 | $410 |
| Minnesota | 44% | $12,944 | $18,836 | $470 |
Personal loans are an important financial tool. You can use them for debt consolidation. You can also use them to make large purchases, do home improvements, or for other purposes.
Support for a Brighter Future
No matter your age, FICO score, or debt level, seeking debt relief can provide the support you need. Take control of your financial future by taking the first step today.
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Author Information
Written by
Natasha Etzel
Natasha is a contributing writer for Freedom Debt Relief. She is a veteran professional financial writer. She provides realistic strategies to help readers improve their knowledge and change their financial situations.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
Can a budget app help me save money?
Yes, budget apps could help you save money by helping you create a budget and track your spending and income. Popular budget apps include Goodbudget, PocketGuard, EveryDollar, MoLO, and YNAB.
How much credit card debt is normal?
What’s normal for one person might be troubling for another. The best amount of credit card debt is the amount that you can afford to pay off when you get the bill. A person’s total financial picture, including salary, financial goals, and other debts, could give a better sense of what’s manageable.
How does debt settlement affect my debt load?
One of the benefits of debt settlement is that it could reduce your debt load. Having creditors agree to accept less than the full amount you owe could reset your debt load to a more manageable level. However, this isn’t a quick process. At first, your debt load increases as you put money toward a dedicated account, sometimes for years. If negotiations are successful, which isn’t guaranteed, you use the money in that account to settle your debt. At this point, your debt load lightens.