Freeing up extra cash for savings can be easier than you think.
- Now is a popular time to start setting personal financial goals for the coming year.
- You may be able to save more money by using budgeting apps to minimize overspending, opening a high-yield savings account to earn more interest, and negotiating your bills to free up extra funds.
Now is the perfect time of year to list your personal financial goals for the coming year. Are you hoping to put more money into savings? If so, you are not alone. The extra savings can help you cover an expensive purchase or emergency in the future. It can be easier to reach your savings goals if you’re willing to use personal finance tools and change habits. Here are some easy ways to save more money in 2023.
1. Start using budgeting apps
Many people do not 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 it easy to set a budget and track your spending habits. You can free up additional funds by reducing overspending.
2. Open a high-yield savings account
If you’re setting aside money, make sure you’re putting it in a high-yield savings account. If you keep extra money in a savings account with a low annual percentage rate of return (API), you’re missing out on an opportunity to earn more interest. Many high-yield savings accounts currently have competitive rates, 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
Do you keep forgetting to set aside money even though you’ve set your savings goals? You can set up automatic transfers so that money is automatically transferred from your checking account to your savings account, as often as you like. By doing this, you commit to your goals and ensure you don’t fall behind on your savings journey.
4. Negotiate your bills to lower your monthly spending
Keeping track of your budget can be helpful if you’re hoping to free up extra cash for savings. But another way to free up some of your money is to negotiate your bills. There are some bills that are negotiable, and if you’re not sure, it’s always worth asking. For example, your ISP may be able to give you a lower promotional rate if you ask nicely. Take the money you save this way and put it into your savings account.
5. Get rid of subscriptions you don’t use
Whether it’s streaming apps or other monthly subscriptions, paying for services you don’t use is like throwing money down the drain. If you want to meet your savings goals in 2023, pausing or canceling subscriptions you don’t use often is a good move. Another option is to rotate your subscriptions so you don’t pay them all at once. You will have more money to save.
6. Increase savings contributions
If you’ve already been putting money away in your savings account, that’s great news. You are well on your way to achieving your goals. But if you have bigger savings goals for the coming year, it’s a good idea to increase your savings contributions so you save more.
It doesn’t have to be much. Even a small 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’ll earn.
Setting new financial goals for the coming year is a great way to set yourself up for success. If you want to save more money, consider implementing some of the suggestions above so you can feel proud when you look at your savings account balance 12 months from now.
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