Saving Money

Saving is a system, not a personality trait

People who save consistently rarely rely on willpower. They set up a system: savings move automatically on payday, big recurring costs are reviewed regularly, and spending decisions are made against a plan. The tips below focus on changes that save the most money for the least ongoing effort.

The highest-impact ways to save

1. Automate a transfer to savings on the day you are paid, before you can spend it.
2. Renegotiate or shop recurring bills — car and home insurance, phone and internet plans — once a year.
3. Cancel unused subscriptions. Review your statements for charges you have forgotten about.
4. Plan meals and grocery trips. Food is one of the largest flexible categories in most budgets.
5. Pay off high-interest debt. Every dollar of credit card interest you avoid is a guaranteed saving.
6. Use a 48-hour rule for non-essential purchases above a set amount.
7. Save windfalls such as tax refunds and bonuses before they are absorbed into spending.

Make your savings earn more

Where you keep savings matters. Traditional savings accounts at many large banks pay very little, while high-yield savings accounts and CDs often pay far more — with the same FDIC or NCUA insurance protection. The compound interest calculator shows how the rate and regular deposits add up over time.

Go deeper

Our guide on how to save money every month covers more than 25 specific ideas by category, and budgeting explains how to build savings into your monthly plan from the start.

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