This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.
Freeing up extra cash to put in savings may be easier than you think.
Image source: Getty Images
Now is the perfect time of year to outline your personal finance goals for the year ahead. Are you hoping to set more money aside in savings? If so, you’re not alone. Extra savings could help you cover a costly purchase or an emergency expense in the future. It can be easier to reach your savings goals if you’re willing to use personal finance tools and make habit changes. Here are a few easy ways to save more money in 2023.
1. Start using budgeting apps
Many people don’t like the word “budget.” But following a budget doesn’t mean you have to live a boring life. You can prioritize what makes you happy and live a meaningful life while following a budget and honoring your financial goals. Budgeting apps make setting a budget and monitoring your spending habits easier. You can free up extra funds by reducing excessive spending.
2. Open a high-yield savings account
If you’re setting aside money, make sure you’re placing it in a high-yield savings account. If you’re keeping extra cash in a savings account with a low annual percentage yield (APY), you’re missing out on the chance to earn more interest. Many high-yield savings accounts have competitive rates right now, so switching accounts may be a good option. With a higher rate, your interest-earning potential is better — which increases your account balance.
3. Put your savings on autopilot
Are you forgetting to set aside money even though you have outlined your savings goals? You can set up automatic transfers so money is transferred from your checking account to your savings account automatically, as often as you’d like. By doing this, you’re committing to your goals, and ensuring you don’t fall behind on your savings journey.
4. Negotiate your bills to lower your monthly spending
Following a budget can be helpful if you’re hoping to free up extra money for savings. But another way to free up some of your money is to negotiate your bills. There are some bills that can be negotiated, and if you’re unsure, it’s always worthwhile to ask. For example, your internet service provider may be able to give you a lower promotional rate if you ask nicely. Take the money that you save by doing this and put it in your savings account.
5. Get rid of subscriptions you’re not using
Whether streaming apps or other monthly subscriptions, paying for services you’re not using is like throwing money down the drain. If you want to reach your savings goals in 2023, pausing or canceling subscriptions you’re not using frequently is a good move. Another option is to rotate your subscriptions so you’re not paying for them all at once. You’ll have more money to save.
6. Increase your savings contributions
If you’ve already been setting aside money in your savings account, that’s excellent news. You’re well on your way toward achieving your goals. But if you have loftier savings goals for the year ahead, it’s a good idea to increase your savings contributions, so you’re saving more.
It doesn’t have to be a lot. Even a slight increase can make a significant difference. For example, if you increase your contributions by $150 a month, you’ll have an extra $1,800 set aside for the year, which doesn’t include any additional interest you will earn.
Setting new financial goals for the upcoming year is a great way to set yourself up for success. If you want to save more money, consider implementing some of the above suggestions so that 12 months from now, you can feel proud when looking at your savings account balance.
Alert: highest cash back card we’ve seen now has 0% intro APR until 2024
If you’re using the wrong credit or debit card, it could be costing you serious money. Our expert loves this top pick, which features a 0% intro APR until 2024, an insane cash back rate of up to 5%, and all somehow for no annual fee.
In fact, this card is so good that our expert even uses it personally. Click here to read our full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
