Six ways to save more money in 2024
Saving money doesn’t have to be overwhelming. Discover six ways to build better habits and keep more of your money in the coming year. Whether you're budgeting smarter or finding new ways to earn, these small steps can make a big difference.
Key takeaways
Start with a dedicated savings account. Keeping your savings separate from spending makes it easier to stick to your goals and earn interest over time.
Budget with intention, not restriction. A thoughtful budget helps identify wasteful spending so you can redirect more toward saving.
Cut everyday costs without sacrificing comfort. Planning meals, skipping delivery apps, and using store rewards can stretch your food budget further.
Make saving automatic and consistent. Automating transfers to savings ensures you're paying yourself first before discretionary spending.
Look for new income opportunities. From side gigs to upskilling for a better job, increasing your income can accelerate your savings progress and help you afford what matters most.
Saving money can be challenging. Keeping up with everyday expenses and unexpected costs often leaves little left over to tuck away.
So if you’re saving less than you’d like, you’re not alone. In December 2023, Americans saved just 3.7% of their disposable personal income.
But what if you could buck that trend in 2024 and save more of your money?
Let’s start with the basics. If you haven’t already, open a savings account. When you keep your savings separate from your daily expenses, it will be harder to dip into those funds for unnecessary spending. And most savings accounts earn interest.
Depending on the bank or credit union, you can open a savings account online, by phone, or in person, usually in a few minutes. Look for accounts that offer higher rates with no or low monthly service charges. Your financial institution may require a minimum initial deposit of $25 to $100 but some don’t have any such requirement.
With a savings account in place, it’s time to look at small, consistent actions that can lead to significant savings over time. Here are six strategies to help you save more in 2024.
1. Create and stick to a budget
A budget is simply a roadmap for your finances – a way to understand and track money coming in and money going out. To create a budget, add up how much money you take home each month, list your monthly fixed and variable expenses, and estimate the monthly cost for each. The amount you place in each category is how much you plan to spend in that area. Adjust your budget as you go and reset it at the beginning of the next month.
A budget can highlight areas where you can cut back and help you make intentional decisions about your spending. Money that’s leftover at the end of a pay period can go to your savings.
2. Pay down debt
The interest you pay on debt can add up quickly. Every dollar you save in interest can go toward building your savings.
Start by making a list of all your debts and systematically begin paying them off. Throwing all your extra income at your smallest debt, while making minimum payments on the others, is often called the debt snowball method. Each time you’ve paid off a smaller debt in full, add the payment you would’ve made toward that debt to your next-smallest debt. Or, try the debt avalanche method, which prioritizes paying off your highest-interest debt first, while continuing to make minimum payments on all other debts. The strategy you choose matters less than your commitment to paying down debt.
3. Cut food costs
Eating in a restaurant or getting takeout is easier than cooking, but the costs quickly add up. Start by making one or two more meals at home than you usually do each week. Packing your lunch and deleting your food delivery apps can also help you cut costs.
But groceries are expensive, too. Planning your menu each week and shopping with a list based on that meal plan will help you buy only what you need. Also try swapping expensive cuts of meat and brand-name products for cheaper options. Coupons, store rewards programs, and sales can also cut your food costs. As you shop, use the calculator on your phone to add up the cost of your groceries and stay within your budget.
4. Automate your savings
Many employers allow direct deposits into multiple accounts, which means a portion of your pay can be sent right to your savings account. You can also set up automatic recurring transfers from your checking account to your savings account on the days you get paid. Prioritize paying yourself just as you pay your other bills.
Automating your savings helps you avoid spending the money you intended to save while growing your funds with compound interest. Your budget and spending habits will likely adjust based on the income that’s left after your automated transfer to savings. But if you’ve been too aggressive with your savings, adjust accordingly.
5. Try a savings or spending challenge
Who said saving money can’t be fun? Make a game of it by challenging yourself to save more or spend less. For example, the goal of a 52-week challenge is to incrementally increase the amount you save each week. Start by saving $1 in week one and grow your savings each week until you’re saving $52 in the final week of the year.
On the spending side, choose a “no-spend” month to limit your spending. After paying your necessary bills, spend as little as possible on extras within that timeframe. You can choose to slash all spending or focus on certain categories, such as coffee runs, clothing, or online shopping.
6. Increase your earnings
Ultimately, there’s a limit to how much you can save if your income remains fixed. Increasing your cash flow means you’ll have more money available to save. The gig economy and remote work have unlocked new ways to earn, whether through freelance work, selling items online, or driving for a ridesharing or delivery service.
You might also consider looking for a higher paying full-time job. Brushing up on your skills or gaining certifications can lead to new opportunities – or a raise or promotion with your current employer. Each additional dollar you earn can be earmarked for savings, moving you closer to your financial goals.
One step at a time
The more you save the more prepared you are for whatever life throws your way, but there are no one-size-fits-all strategies. Find ways that work for you to help you reach your savings goals.
Becoming intentional about your spending and savings is just the start. Take one step or one month at a time to build your savings in 2024.