Wouldn’t it be nice to have a little extra money in your bank account for emergencies? If you’re unsure of how to save money fast, we’ve got you covered.
These personal finance hacks can help you put extra cash in your wallet and reach your financial goals.
First, Choose Where Your Savings Will Go
Figuring out how to save money fast won’t help much if your extra money goes into an account where it’s easy to spend.
The right savings account can make saving money simpler. Consider a few of these accounts:
High-Yield Savings Accounts
A high-yield savings account is a type of bank account that earns a higher interest rate than a traditional account. By increasing your interest rate, you’re earning more on the money you save.
Let’s say your savings account earns 0.5% annually and you have $1,000 in it. You’d earn $5 in interest over the year.
You find a high-yield savings account that offers 1% annually and deposit $1,000. One year later you’d have $10 in interest.
Over time, you’d make a lot more with the high-yield account.
You’ll want to shop around for a high-yield savings account that offers the best interest rate.
It’s also important to note that interest rates can fluctuate, and things like fees and minimum balance penalties can eat up what you put in.
Borrow up to $500 when your savings fall short.
Specified Savings Accounts
In addition to using high-yield accounts, you can make multiple savings accounts to separate your savings. This is helpful when you have multiple savings goals.
You should start with an emergency fund. Emergency savings accounts are ideal for paying unexpected bills, such as a sudden car repair or medical bill.
Other accounts you might want to make include vacation savings or an account for a down payment on a house or car.
Brokerage Account
A brokerage account isn’t technically a savings account. It’s an account that holds financial assets like stocks or mutual funds.
Investing in the stock market can help you save a lot of money. However, it can also be risky—your stocks could lose value. Do your research before investing, and consider alternatives to traditional stocks, such as government bonds.
It’s best to establish other savings before you start investing.
Tips on How to Save Money Fast
Once you have an account set up, it’s time to start saving.
Begin with these simple tips to jumpstart your savings.
Create a Budget
Knowing how much money you spend—and make—each month will give you a better idea of how much you can save.
Creating a budget does just that. Simply add up your monthly expenses and subtract them from your monthly income. Any money that’s not used for expenses can go to savings.
Budgets are a great tool to see if you’re a spender or a saver and evaluate your spending habits.
They’re also meant to be flexible. If your budget isn’t working, tweak it until it does.
Make Saving Automatic
A good part of any financial plan is to automate your savings. You want to make sure your money is going into your savings before you can spend it.
Most banks let you set up automatic transfers with online banking.
Open your bank’s mobile app or website and look for recurring transfers.
You can set an automatic transfer to move a certain amount from your checking account to savings around your payday.
Pay Off High-Interest Debt
It sounds backward, but the fastest way to save money is to pay off the debt that’s costing you.
High-interest debt like credit card debt can quickly eat into your savings.
Focus on paying off expensive debt by making more than your monthly payment.
Once your debt is gone, you’ll have more money to put toward savings each month.
How Can I Save Money Faster?
Sometimes your regular savings aren’t enough to reach your financial goals on time.
See how to save money faster with these money hacks.
Repurpose Spending
Taking money that you were going to spend and putting it into savings will help you grow your savings faster.
To make this method work, try to set small goals. This lets you save naturally without depriving yourself of things that make you happy.
For example, you decide to bring lunch to work three days this week instead of eating out.
You would’ve spent about $30 total on lunch if you had gone out to eat. You put $30 into savings instead.
You saved $30 and still got to enjoy lunch out two days of the week.
The same can be said of anything that isn't a crucial bill. Limiting the number of streaming services you subscribe to, choosing a cheaper gym, or even carpooling with a coworker and splitting the gas costs can all save you money.
Make More Money
Starting a side hustle can help you save money faster by simply making more money.
Approximately 57 million Americans were part of the gig economy in 2020.
Some common side hustles include:
- Driving for rideshare apps
- Delivering food or groceries
- Freelance writing or graphic design
- Dog walking and babysitting
- Selling your crafts online
Lower Your Power Bills
According to the Bureau of Labor Statistics, natural gas costs rose over 28% from October 2020 to October 2021.
Electricity costs increased 6.5% in the same span. You’ve probably seen that increase in your power bill.
Luckily, there are a few smart ways to lower your utility bills:
- Set your thermostat two degrees lower in the winter or higher in the summer
- Put on or take off a sweater before turning on the heat or AC.
- Wash clothes in cold water
- Seal drafty windows and doors
Sell Items You Don't Use
Let's say you used to have expensive tastes, or have a collection of high-end items you bought on clearance. If you have name-brand clothing, upscale handbags, or even electronics you don't use anymore, you may want to consider selling them on a site like Poshmark, Tradesy, or Mercari.
While you likely won't make tons of money selling used things online, you could put some cash into savings while clearing out your closets and home.
How to Save Money Fast on a Low Income
It’s a lot easier to save money when you have extra money to spare. But what if you’re living paycheck to paycheck?
The good news is you can learn how to save money fast at any income.
Try some of these ideas to quickly grow your savings on a low income.
Cancel Unused Subscriptions
The first place to look for overspending is in monthly subscriptions. It’s all too easy to sign up for a subscription and forget about it.
Go through your current monthly subscriptions and cancel any you don’t use.
Make sure to look for these common—and costly—plans:
- Gym membership
- Streaming services like Netflix
- Online gaming plans like Xbox Live
- Premium music streaming such as Spotify Premium
- Lifestyle subscription boxes
- Amazon Prime
Cut Monthly Expenses
Some expenses are a necessity. You probably can’t cut out your rent or car insurance costs—completely.
However, you might be able to shave off some of the cost for these services.
Take car insurance for example. You can contact your agent and ask to adjust your deductible or amount of coverage to lower your costs. Be sure to also ask for any discounts you might be eligible for.
You can also change your internet and cell phone plans to save money. Consider downgrading your internet speed or data plan to a slightly lower plan.
For instance, if you currently work from home, using wifi data and lowering your mobile data plan could save you some serious money monthly.
If you're back in the office, lowering your home internet speeds could do the same.
You’ll save a lot of money over the year without noticing much difference in performance.
Shop Smart for Groceries
Having a plan when you go grocery shopping helps you avoid impulse buys at the grocery store.
Start meal planning to cut your grocery spending by using these tips:
- Create a meal plan and ingredients list for the week
- Sign up for store loyalty programs
- Clip coupons, both print and digital
- Buy generic or store-brand items
- Meal prep on weekends to avoid last-minute take-out
Start Saving Today
No matter your income level, there are smart ways to save more money.
Try some of these money-saving tips to find what works best for you.
You might be surprised how fast your money grows!
