Saving money feels hard now. Prices keep going up on many things. If you nod along, you aren’t alone. Lots of us find saving extra cash difficult. A recent NerdWallet survey shares surprising info about saving habits.
Almost two in five working Americans save under 20% of their pay. That’s 39% feeling this way. A full 10% of working Americans don’t save anything in a bank account often. This struggle is definitely widespread. But here’s good news for you. Starting to save or saving more is possible.
Money experts have fantastic ideas for you. They can help build a healthier financial picture. Some simple strategies make a big difference in saving money.
1. **Create a budget** Getting a handle on your money means making a budget. This is like your money map for personal use. It shows income versus spending habits. Then you prioritize where money goes next. Start budgeting even today if you want. Lots of resources help you do this task.
Use a guide about budgeting or maybe a free template. Just plain paper works to jot things down too. Seeing where money goes helps you decide better. One popular budget way is the 50/30/20 method. You assign parts of your income after tax. Put 50% on necessities, like rent or groceries.
Wants to get 30%, maybe for fun or dining. The last 20% is for savings or debt payments. Find one area taking too much. Adjust other spending parts to balance things out then. Remember the 50/30/20 plan isn’t super strict for everyone. Different situations mean it might not fit perfectly.
That’s totally fine, by the way. Other budget types exist, waiting to be explored. Look at 60/30/10 or the envelope cash system. Find a method you can manage fine. It just helps you get more control over money.
2. **Set savings goals** You got your budget sorted, right? Setting realistic savings goals comes next and motivates good. It’s super helpful. It doesn’t matter if the goal is the big picture or quick to reach.
Having a target keeps you on the saving track. Say you got extra income this year. Your goal might be saving $2,000 for an IRA. That’s great for finances long-term. Or maybe pay $50 extra on debt monthly.
Little bits of effort help reduce what you owe. This saves money on interest paid too. Even if money feels tight now, try saving $5 weekly. It definitely adds up later.
Small, steady savings builds momentum. It grows into something significant for sure. Need to know how much to save monthly or yearly? A savings goal calculator assists you greatly. It gives a number to aim at. This helps the goal feel possible.
Read more about: Student Loans and Homeownership: Your Path Forward in Today’s Market
3. **Track spending** Trying to save money feels like fighting a current. Especially when you don’t know where money goes first. Tracking spending is a basic step. It gives you clarity needed about finances.
This means watching your cash flow monthly. That is just income minus all spending, basically. Tracking shows progress towards saving goals too. It makes seeing things way easier. When you see where money goes.
Seeing efforts pay off is very motivating. Lots of budget apps help track spending now. They do it automatically for you. This beats writing everything down by hand. Apps categorize spending too. They show just where money flows.
Read more about: Navigating Personal Finance: Strategic Debt Management and Building Wealth Through Homeownership
4. **Count your coins and bills** Try this old-school, simple trick, okay? Set aside spare change and small bills daily. Toss coins and ones into a jar.
You’ll be surprised how fast it adds up. Get enough, take it to the bank. Put it in a savings account then. Seeing balance grow little by little feels good. This idea connects to using cash more often. Use cash instead of cards when possible.
Paying with physical money feels harder to part with sometimes. This difference helps you think about purchases. It can curb spending on impulse things. Counting coins won’t get you rich suddenly. But it’s good for slow, steady savings growth. It is a small habit. It can lead to results you will notice.
Read more about: Decoding the Unprecedented Bond Market Turmoil and What It Means for Your Money
5. **Keep savings in a high-yield savings account** Where you keep savings matters a lot. A smart step is putting funds in a high-yield savings account. These accounts are special, you see. They pay better interest than normal savings. Money grows faster just sitting there. This gives savings a boost.
Learn more about what a high-yield savings account is okay. Compare options and find one fitting you best. If you had banking troubles before, don’t despair yet. Options help you get back on track. Learn about second chance checking accounts, for example. They help people who had past history problems opening regular accounts. Pathways exist to improve your financial state.
Read more about: Beyond the Bank Balance: Why Building an Emergency Fund Feels Impossible (And Why You Still Absolutely Should)
6. **Automate transfers** Make saving feel easy, yes? Automate it. Set up automatic transfers from checking to savings. Money moves regularly without thinking about it. Schedule these mostly monthly. Or use direct deposit, maybe.
Part of the paycheck goes straight to the savings account. It doesn’t even hit checking first. This way, saving becomes a routine part. Money builds up with your minimum effort.
It happens automatically, like magic. Great for certain saving goals, this is. Build an emergency fund for surprises. Pay debt off quicker, maybe. Save for fun vacation plans. Or a down payment on a big item like a house or car. Automatic transfers help hit targets steadily.
Related posts:
How to Save Money: 28 Ways
Can food co-ops really cut grocery bills by 40%? I set one up with neighbours to find out
3 budget-friendly recipes to save money with one smart shopping list
