How to Reduce Debt and Save Money in 2022

The Everymom’s product selections are curated by the editorial team. If you buy something through our links, we may earn an affiliate commission, at no cost to you. We only recommend products we genuinely love.


Do you know what I’ve learned over time? Our relationship with money can be as complex as our relationship with sex. It can either be a source of freedom for us or it can produce anxiety or fear. Personally, I tend to fall into the latter group but have found ways to work through my mental blocks surrounding my finances. To be fair, some of the tips I’ve learned stem from therapy, but I’m jumping ahead of myself. 

Before I developed a financial plan for myself, I felt lost about how to turn things around. It seemed as if it was taking forever to reduce the debt I’d accrued and it didn’t make sense to save money with high credit balances. What helped change my mindset is a suggestion made by a former therapist: Instead of dwelling on mistakes I’d made, I was asked to sit with my introduction to the concept of money when I was a child. From there, I was given exercises to help me find the root cause of my financial habits.

It’s advice that I’ve carried with me ever since and it taught me that it’s possible to make healthy financial choices. Things may not happen overnight, but with patience and actionable steps, saving money and reducing debt can become something you feel confident about doing. 


Saving Money

We may ask ourselves, “What’s the point of saving money when I have to [insert responsibility]?” On the other hand, if you feel you could be saving more money but aren’t sure where to start, NerdWallet suggests using the 50/30/20 rule: 50% of your income for needs, 30% of income for wants, and 20% of income for savings and debt repayment. To help you feel more comfortable doing that, here are a few suggestions.


Assess Your Debt and Credit Balances

If this makes you want to run away from your screen and never return, I don’t blame you. This is by far one of the things I dreaded when I decided to get serious about my own finances. I’d developed an “out of sight, out of mind” thought process and dealt with overdraft fees, scams, and more because of it. Believe me when I say that I understand. At the same time, being able to truly face our balances helps us become clear about where we stand financially.



Account for Expenses and Create a Budget

Some accounts allow you to see a breakdown of your expenses. If you are unable to see that within your bank account, you can utilize budget apps such as Mint or Goodbudget. Seeing your expenses helps you determine the areas you spend the most money in. You may see categories such as bills, entertainment, shopping, etc. From here, you can decide if there’s an area you can reduce spending money in.

For example, let’s say you have multiple entertainment subscriptions: Netflix (standard), Hulu (basic) Disney+, Apple Music (individual), and Spotify (individual). Each subscription is priced monthly, which means you may be paying close to $50 every month for them. This price doesn’t include internet and cable fees we may be paying. 

Determining which areas you can reduce your expenses in that aren’t essential will help free up some money. That money can then be set aside for savings. 


Invest in Financial Resources & Take Notes

This doesn’t mean spending money on finance courses unless you feel it will benefit you. Instead, read financial books that hold valuable information that can help you find a financial plan that will work for you. Some of my personal favorites are listed below:

finance books
Tiffany "The Budgetnista" Aliche

Get Good With Money

Featuring 10 steps to help you develop a healthy relationship with your finances, this is a great tool that goes in depth about everything from budgeting to investing.

Erin Lowry

Broke Millennial: Stop Scraping By and Get Your Financial Life Together

As a Millennial, this title grabbed my attention, but the length Lowry goes to to make sure readers understand more complicated financial terms and breakdowns held it.

Suze Orman

The Money Book for the Young, Fabulous & Broke

This is one of the first finance books my older sister gifted me when I went to college. It covers topics such as student loans and building credit.


Reducing Debt

Credit can be a good or bad thing depending on who you ask. Regardless of your opinion on it, I think we can agree it’s essential. It determines our eligibility for car loans, apartment rentals, home ownership, and much more. There are loopholes around some things, but for the most part, credit tends to follow us around. That being said, here are a few things to pay attention to when looking to reduce debt.


Establish Credit Utilization Checkpoints

Aside from checking the balance on your credit card and/or accounts, looking at the percentage of your credit you’re utilizing is extremely important. The rule of thumb is to keep your credit utilization under 30% because it impacts your credit score. If you notice your percentage is higher than that, it means you’re beginning to spend more than recommended. Now, things happen in life like unexpected emergencies, so our balances may exist because of them.

Whatever your unique situation is, your credit utilization percentage can help you look at the areas where you can reduce debt. This coincides with assessing your balances.



Set Short-Term and Long-Term Goals for Yourself

Aside from creating a realistic budget, setting financial goals is by my far one of my favorite things I like to do. To help encourage yourself, you can also create goals that will allow you to reduce your debt. One goal you can create is deciding to put a certain amount in savings from each paycheck—and make it automated if you can. It can be a small amount but will add up overtime. If you decide you want to challenge yourself, paying off a smaller credit card/account within a certain time frame may be more suited for you. You can also apply this approach to your savings goals!


Pay More Than the Minimum Balance Due Each Statement

If you have room to do so, pay more than the minimum balance on your credit card(s). Since interest is already accruing, making more than the minimum payment will save you money in the long run. 


Life happens, mom, so it’s OK if your financial situation doesn’t look like how you want it to right now. Getting on track with your finances doesn’t have to necessarily be your New Year’s resolution either. It can be viewed as a stepping stone if you haven’t been paying as much attention to your accounts. If you simply want to improve on systems you may already have in place, this can be helpful for that too. From one mom to another: We can make healthier choices in different areas of our lives, one small step at a time.

9 Financial and Legal Things To Do Before and After Your Baby Arrives
Click to Read