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The median savings for Americans has decreased by over 70%. Check out the latest numbers and learn what you can do to boost your savings. 

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Americans are under some serious financial stress. The median American’s savings account balance fell from $4,500 last year to just $1,200 in July of this year, according to savings research by The Motley Fool Ascent.

It’s normal to dip into your savings from time to time. But if you need to do that, it’s important to build your savings account back up as soon as possible. Otherwise, you may be unprepared when any big expenses or emergencies strike.

Advice on saving money often makes you feel like you need to be super strict and count every penny. That has never worked for me, so I’m not going to recommend it to you. Instead, here are the best ways I’ve found to save more, all of which I’ve used.

1. See if you can cut back on food, housing, or your car payment

One of the problems with the typical saving advice is that it focuses on getting rid of small expenses. Stop grabbing a latte on your way to work, don’t buy anymore avocado toast, and so on. Tips like these make life a lot less enjoyable, and they usually don’t even save you all that much money.

A much better method is to look at your biggest monthly costs and see where you can cut back. According to average American household spending data, the three largest expenses are:

HousingTransportationFood (at home and at restaurants)

Now, you’re probably not going to be able to cut back in every area, and that’s fine. Just spending less on one of these could easily save you $100 per month, $200, or more. Here are a few potential options to boost your bank accounts:

Don’t go out for food or drinks as much. You don’t need to stop entirely, but swap out one or two of these for a lower-cost activity.Go rate shopping for more affordable car insurance, or look for car insurance discounts.If you have a hefty car payment, consider selling your car and getting something cheaper.Move to a less expensive area or downsize to a smaller home.

2. Look for opportunities to increase your income

This certainly isn’t a savings hack, but the amount you earn determines how much you can save. The most effective way to save more, and improve your personal finances as a whole, is to increase your income. You’ll have more money to save, invest, and to enjoy your life.

Almost everyone would like to earn more money. How can you actually do it? That’s going to depend on your current employment situation and skillset, but here are some ways to make it happen:

If you have a full-time job, talk to your manager regularly about what kind of performance goals you need to reach to get a raise.Keep an eye out for advancement opportunities. Many companies have an internal job board with available positions.If you freelance or have control over your schedule, work an extra 30 minutes per day.Keep your resume updated and conduct job searches on a regular basis, even when you already have a job.

The key to earning more is being proactive. People who increase their income don’t wait around until someone decides to give them more money. They create those opportunities for themselves.

3. Move your money to a high-yield savings account

This is a simple way to boost your savings, but considering how few people do it, it could be considered a savings hack. Our savings research found that only 31% of Americans have a high-yield savings account (one with an interest rate of at least 4%).

That’s more costly than many realize. The average savings account interest rate is just 0.42%. Some high-yield accounts are offering more than 10 times the national average. On the median savings balance of $1,200, that’s the difference between $5.04 in interest per year and $50.40 or more. And the difference only gets bigger as you save more.

Check the current interest rate on your savings account. If it’s not at least 4%, look at the best high-yield savings accounts and pick one you like. Even if you don’t have a ton of money saved yet, you can start earning more interest right away.

Saving more money doesn’t need to involve pinching pennies. It’s better to focus on more impactful changes, including cutting back on major expenses, earning more, and maximizing interest.

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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.

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