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Key Points:
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Effective strategies can be applied to significantly boost savings in 2024.
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It is important to set realistic goals for better financial management.
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A high-yield savings account can increase income and automate your savings for consistent financial growth.
Saving money is something that most of us know we should do. But more often than not, life gets in the way of regularly tucking funds away.
The good news is that saving money doesn’t have to be something that’s out of reach in the New Year. You could make this the year you finally make big progress on your savings goals.
We will explore how you can manage your finances to optimize for savings in 2024.
2024 New Year’s Resolution: Build Savings
Looking for ways to save money faster? Saving money is a healthy habit worth building in the New Year. As you build savings, you can tackle big financial goals. Plus, saving money regularly can help you build a soft cushion to land on when life throws unexpected expenses your way.
How to build savings in 2024
Many want to build savings. But taking action steps to tuck funds away will set you apart from the crowd. Below are some steps, saving money tips if you will, that you can take to start building savings in 2024.
Most savers will find the value they are looking for through a high-yield savings account.
Find Your Reason
While it’s tempting to dive right into the dollars and cents of saving, it’s a good idea to start by taking a closer look at why you want to start saving more. Since the idea of saving can be relatively unconnected to your daily life, it’s critical to find a deeper reason to save.
Instead of finding ways to save money faster or ambling toward a savings goal based on the concept that everyone says it’s a good idea to save money, dig into the reasons why you want to start saving now. For example, you might want to save money to build financial security, fund a vacation, or cover an upcoming purchase.
Whatever your reasons, it’s important to nail down specific reasons why you want to tuck away funds. Without a concrete reason to save, it’s tempting to stray from your savings goals.
Choose the Right Savings Vehicle
Wondering how to maximize savings? Not all savings accounts are created equally. Most savers will find the value they are looking for through a high-yield savings account. Consider opening a top high-yield savings account to put your hard-earned savings to work.
Set a Realistic Goal
The best ways to grow savings without an end goal are often more difficult to follow through with. After all, you have to choose between tucking the funds into a savings account for some unknown future reason or making the purchase that’s right in front of you. Most of us will choose to make the purchase.
You can avoid falling into this trap by setting a specific and realistic savings goal. Look back on your reasons for committing to saving money this year. Attach a dollar figure to create a savings goal for 2024.
For example, let’s say you want to build a robust emergency fund. Since experts recommend saving between three to six months’ worth of expenses in an emergency fund, you’ve elected to build an emergency fund of $6,000 because you spend $2,000 per month. You want to have this goal accomplished by the end of the year, so you know you’ll have to save $500 per month into this account to hit the goal.
Breaking down what you need to save on a monthly basis can help you stay on track. Also, try to be realistic about your savings goals. For example, it would be significantly more difficult for someone earning $30,000 per year to save $500 per month than someone earning $75,000 per year. Adjust your savings goals to align with what’s realistic for your situation.
Build New Income Streams
While saving money on a tight budget can be challenging, it’s possible to boost your income. Building new streams of income can transform your savings potential. Don’t be afraid to get creative as you look for ways to grow your income.
Some potential ways to increase your income include building a side hustle, selling stuff from around the house, walking dogs in the neighborhood, asking for a raise, and getting a part-time job.
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Automate What You Can
Saving money isn’t always fun. It can be tempting to skip your savings plan for a month to spend more on fun purchases. Instead of facing this temptation each month, consider automating your savings strategy.
For example, if you plan to save $100 per month, then set up an automatic transfer to your savings account.
The Bottom Line
Saving money is always a good idea. 2024 could be the year you make progress towards your savings goals. Consider getting started by opening a high-yield savings account to store your newfound savings today.
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Sarah Sharkey is a personal finance writer with a Master's in Management from the Hough School of Business at the University of Florida. She enjoys helping people make better financial decisions and has written for numerous personal finance publications, including Money Under 30, Business Insider, and The College Investor. Sarah enjoys traveling, hiking, and reading when she is not writing.
