Saving money seems straightforward, but it can be more difficult than you think! Using strategies to save money fast can help you become more financially independent, limit debt, save for emergencies, and prepare for retirement. Here are just a few strategies to save money fast and move closer toward financial freedom.
1. Get Out of Debt
It won’t be easy to save if you’re in the negative. First things first; tackle that debt. Add up all your monthly debt payments to see how much you could be setting aside each month after you finish paying off your debt. Consider consolidating your debt to cut multiple payments down to one and to potentially lower what you pay in interest over the life of the loan.
2. Have Savings Goals
Are you saving to buy a house? Saving to go on a family vacation? Saving for retirement? Setting financial goals is essential to saving money fast.
Interestingly, debt isn’t the number one reason why Americans are struggling to save money. More than one in five working American adults doesn’t set aside income for short-term or long-term financial goals. However, having short- and long-term savings goals is good motivation to put money aside. If you aren’t working toward anything specific, it’s easier to spend more money than you should.
Start with short-term goals. Use these goals as stepping-stones to larger goals, such as saving for a down payment on a house or putting money aside for your retirement account. Some common short-term goals include creating a budget, having an emergency fund, and paying off credit cards.
3. Find Ways to Cut Spending
If your monthly expenses are high, look for ways to cut down on what you spend each month. Here are some strategies to save money fast:
- Cancel subscriptions on anything you don’t use or could do without
- Limit the number of times you eat out each month
- Shop sales at the grocery store and look for discounts
- Try a “no-spend weekend” at least once a month
- See if you can cut down on your utility bills
- Review your phone plan
- Use public transportation
4. Track Your Expenses
Start tracking your expenses to see exactly where your money is going each month. When you know where your money is going, it’s easier to set your priorities and cut expenses where you can. This is a useful strategy to save money fast.
There are plenty of ways to track your expenses. You can use one of many available apps for mobile phones. You can periodically check your bank account statements and identify exactly what you’re spending. You can use a spreadsheet to stay on top of your spending. Use whichever method works best for you!
5. Use the Right Tools
Besides budgeting, expense-tracking, and savings apps, you can use FDIC-insured deposit accounts to grow your savings. Here are a few strategies to save money fast.
Traditional Savings Account
These accounts are the most standard and widely used. They’re typically offered at banks and credit unions. You can open a savings account with a minimum deposit; however, these types of accounts are low-yield.
High-yield Savings Account
High-yield accounts are those with which you can deposit your savings and earn a higher interest rate.
Money Market Account
Similar to a high-yield savings account, a money market account has features like a checking account. It’s a deposit account that pays interest based on current interest rates.
A certificate of deposit account is a deposit account with fixed, predictable returns and delivers a specific yield within a certain period.
Use These Strategies to Save Money Fast
Saving money isn’t always easy but you can use these strategies to save money fast. It’s important to have a clear image of what you’re working toward and to keep reminding yourself why you’re saving money, whether it be for a future vacation, a down payment on a car, getting rid of debt, or saving for retirement.