I’ve been a personal finance writer for five years. During this time, I have read and written countless articles on all the ways to earn, spend and save money more effectively.
Over the years, I’ve taken some of these tips and applied them to my personal finances. Other information was left in the editing room because, let’s face it, financial advice isn’t one-size-fits-all. And that shouldn’t be the case.
For example, when it comes to saving money, I’ve always been resistant to the idea that it’s normal to feel short of money. In the past, when I deprived myself and put most of my hard-earned money into a savings account for a later date, I was actually less motivated to save.
In my opinion, the best savings strategies are finding the right balance between taking care of Future Me and ensuring that Present Day Me doesn’t feel like she’s making too many sacrifices or going without.
Over time, I’ve implemented several key habits that fit my lifestyle and make it easier for me to save money. Maybe they will work for you too.
1. Take advantage of a high yield savings account (HYSA)
Here’s a hard truth: The money sitting in your wallet, under your mattress, or even in a traditional savings account isn’t growing as much as it could. In fact, you’re probably losing money to inflation.
However, with a high-yield savings account, you could earn up to 5% APY on your balance. And the interest you accumulate will also start earning interest through the magic of compounding.
Before opening a high-yield savings account, you’ll need to read the fine print and consider account fees, minimum balance requirements, ease of access to your funds, and more.
Don’t know where to start? Check out our ranking of the 10 best high-yield savings accounts available today.
2. Set up automatic contributions (but check your account balance periodically)
It’s a big problem. I got into the habit of automating my savings very early on. It was more efficient to set aside part of my salary before I could think of other ways to spend the money. This allowed me to adjust to working with a little less money each payday, while knowing that my savings account balance was growing in the background.
Despite this, I still like to log in periodically to check my savings account balance and see how it is changing over time. This boosts my motivation and allows me to feel more secure in my future goals.
3. Be intentional about how you use financial windfalls
If you’ve ever received a bonus at work, you know the temptation that comes with seeing a lump sum of cash land in your bank account. The first time I won a bonus, part of my brain was already thinking about how I would use that money to fund my next vacation. But then the financial writer in me kicked in and I hesitated to buy plane tickets.
Instead, I decided to take a small portion of my bonus to splurge (sometimes you have to scratch and treat yourself). Then I use the rest of my bonus to pay off my car loan. By making this decision, I felt like I had rewarded myself for my hard work and still took a step that brought me closer to my financial goals.
Paying off my car freed me from a monthly payment that was eating into my budget considerably. Going forward, I had extra income to put into my savings, invest, and put toward other debt payments.
Since then, whenever I receive a bonus, tax refund, or other unexpected money, I’ve gotten into the habit of treating myself small and looking for ways to improve my finances more significantly.
4. Plan at least one evening or activity each week
Prioritizing my savings goals has forced me to cut back on my social outings – but not entirely. Investing in my friendships and activities that bring me joy is also a priority for me. I even included it in my budget.
Setting aside funds to cover dinner with friends, movie night, or another activity at least once a week gives me something to look forward to and makes it easier to make small sacrifices.
For example, if I plan to attend a birthday dinner on a Friday night, I will feel more motivated to cook for myself throughout the week in anticipation of that expense.
Learn more: Having difficulty with budgeting? Following the 50/30/20 rule could be your solution.
5. Outsource to save time and money
It may be an interesting idea, but delivery services have helped me save money on groceries. Sure, grocery delivery apps involve subscription fees and fees, but they’ve helped me reduce impulse purchases, leading to overall savings.
When something looks good at the store, it’s easy to throw it into your cart without hesitation. But by outsourcing my shopping, I’m more likely to buy only what I need. This method of shopping also made it easier for me to plan my meals for the week and reorder the same groceries later, allowing me to spend less time on these tasks.
Many apps allow you to filter items by price or also have a tab specifically for sales and discounts.
Other tasks you can outsource include cleaning, laundry, gardening, etc. Consider using some of your new free time to work on freelance projects for extra income or do a financial check-up to see where you can save even more.
6. Consider a rewards membership with your favorite retailers
If you’re a regular at a store, you may be asked to join a rewards program at some point. Sometimes it pays to sign up if you are a frequent buyer. Many retailers offer discounts, cashback, or even special pricing for rewarded members. You can also receive emails or SMS alerts that notify you when a sale occurs.
That’s why if my favorite stores or nearby gas stations offer free rewards programs, I always take a few extra minutes at the counter to sign up. Of course, the key is to avoid impulse purchases or overspending when I’m discovering a lot. The goal is to be rewarded for future purchases I plan to make anyway.
7. Audit your subscriptions
I have been guilty of downloading and paying for a subscription and then forgetting about it, or downloading a trial version of an app and neglecting to cancel the subscription before being Invoice.
For this reason, I will periodically go into my phone’s settings and visit the subscriptions tab to see my active subscriptions and how much I’m paying for them. If an app is due for renewal soon, I’ll determine if I’m actually using it or if it’s time to cancel my subscription.
I also check my bank statements for subscriptions outside of the App Store. You might also consider setting up alerts with your bank or through an app to save money for upcoming recurring transactions.
8. Put potential purchases on ice
When you put a purchase “on hold,” you wait a period of time before purchasing it, giving you the opportunity to reconsider whether you really need it. While I don’t necessarily practice this when purchasing a coffee cup or a pack of gum, I do if it’s a purchase over a certain amount.
If I see a specific item I’m interested in, I’ll create a note on my phone with the price and a link if it’s available online. Then I revisit that note a few days or weeks later.
Sometimes I decide I really want that item. It may have even gone on sale, which can be an added bonus, or I may have had time to find the same item for a lower price elsewhere.
In most cases, however, I either forgot about the item completely or decided it wasn’t worth the price after some time and distance.
In other words, putting purchases on hold doesn’t always prevent spending, but it can give you the opportunity to make a more informed decision about your purchase.
9. Join AARP
Early in my career, I learned from a financial influencer that there was no minimum age for membership in AARP (formerly known as the American Association of Retired Persons).
The organization is aimed at people over 50, but anyone 18 and over can become a member and enjoy discounts on dining, hotel and resort stays, airline tickets, car rentals, cruises, insurance and much more. Annual membership usually costs $16, but is currently $12.
10. Rent clothes
As a twenty-something with a multitude of weddings, rehearsal dinners, baby showers, etc. filling up my social calendar, I feel like I always need a new outfit for an upcoming event.
One way I have managed to save money is by renting clothes rather than buying them. Many clothing rental services give you access to high-end pieces without the high-end price tag and allow you to refresh your wardrobe at a fraction of the cost. This is especially true when it comes to special occasion outfits that you’ll probably never wear again.
You can also use these services to change up your everyday wardrobe, try out different styles, and decide which pieces are worth investing in.
11. Be comfortable with saying “no”
There can be a lot of social pressure to spend money when you don’t necessarily want to. Learning to say “no” has been one of the most effective and empowering aspects of my money saving journey.
There are times when declining an invitation is the smarter decision, whether it’s skipping dinner with friends at an upscale restaurant outside of my budget or politely declining an invitation to a wedding at destination and send a gift instead. (You may have heard TikTokers call this “noisy budgeting.”)
Changing my mindset to view saying no as a necessary and empowering step toward reaching my savings goals rather than as a limitation has made all the difference.
