47% of Americans Have Less in Savings Than They Did a Year Ago. Here’s How to Build Back Up

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Don’t despair if your savings have taken a beating. 

You never know when life might throw you a curveball, whether it’s the loss of your job, a car that stops running, or a home repair that pops up out of the blue. That’s why it’s so important to have a decent-sized emergency fund. Without money in your savings account, you risk racking up costly debt when things don’t go your way.

But many Americans are now sitting on less money in savings than they were a year ago. Specifically, 47% say their savings have dwindled over the past 12 months, according to a recent Quinnipiac University poll.

Now there may be different reasons for this trend, but it’s easy to point a finger at high inflation as a driving factor. For all of 2022, consumers had no choice but to grapple with sky-high living costs. And so it stands to reason that many had no choice but to dip into their savings just to stay afloat.

If your savings balance took a dive in 2022, you may, at this point, be eager to build it back up. Here are a few ways to go about that.

1. Get on a tight budget

Following a budget can be an eye-opening experience. That’s because seeing your expenses mapped out for you might inspire positive changes that make it possible to spend less without depriving yourself of the things you consider important.

Once you get on a budget, you might have an easier time limiting your spending in certain expense categories. And the less you spend, the more money you can stick in the bank.

2. Turn your holiday gifts into cash

Chances are, you’re sitting on at least some holiday gifts you’re willing to part with (or don’t even like). Rather than let unwanted sweaters and kitchen gadgets take up space in your closets, try selling them.

The same holds true for gift cards. There are different websites that allow you to trade in a gift card for cash. And while you generally won’t get the full face value of your gift card, you’ll get something. So if, for example, you have a $100 gift card to a clothing store you’re not a fan of, you might be able to get $80 for it. That’s not as good as $100 — but you can’t deposit an unwanted $100 gift card into your bank account.

3. Work a side hustle

If you already maintain a busy schedule, the idea of getting a second job may not seem so appealing. But you don’t have to hold down that side job indefinitely — you just need to work at it until your savings balance is in a better place. That could mean holding down a side hustle for just a few months.

And who knows? If you take on a side gig and end up liking the work, you might choose to keep it to give yourself extra income.

It’s not surprising to learn that nearly half of Americans have seen their savings decline over the past year. But the good news is that there are steps you can take to replenish your savings and give yourself the peace of mind that goes with that.

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