7 Foolproof Ways to Save More Money

7 Foolproof Ways to Save More Money

With consumer confidence climbing to heights not seen since 2001, it may seem like those penny-pinchin’ days of the Great Recession are behind us. However, the impact of those hard times is far reaching, as evidenced by Americans’ plans for spending tax returns: according to the National Retail Federation, nearly half (48 percent) of the more than 7,000 consumers surveyed will sock away their refunds instead of splurging on a new TV or other trinket. Over one third (35.5 percent) will use the money to pay down debt.

Two cheers for smart money management, right? Don’t celebrate too soon; Americans are still lousy at saving. According to recent survey conducted by Bankrate, 20 percent of respondents admit they don’t save any money at all, due in part to having too many expenses. The second-most cited reason for not saving money: respondents just “haven’t gotten around to it.”

Saving money can be challenging and some strategies are more sustainable than others, but using laziness as an excuse is unacceptable! While designating a no-spend month is certainly one way to boost your savings, consider these seven foolproof ways to squirrel away more funds this spring.

1. Pay yourself first.

The trick to effectively saving money is to treat it like any other bill: a necessary payment that will get you into trouble if you don’t pay it. When you pay yourself first, you avoid wasting leftover funds on unnecessary purchases that could go toward your emergency fund or savings account. To simplify this, automate a transfer between checking and savings that corresponds with payday, or have your employer deduct a certain amount from your paycheck to be deposited into a separate savings account. Out of sight, out of mind!

 

2. Switch to online banking.

Making your money work for you is not a new concept, yet many Americans still put their savings in low-yield accounts with brick-and-mortar banks. Online banks like Ally and Barclays, for example, offer an annual percentage yield (APY) of 1 percent or more, compared to as little as 0.01 percent from traditional banks. Plus, online account providers like Chase and Capital One frequently offer incentives to customers who move their balances to an online account, with cash bonuses ranging from $50 to $500. Like any financial decision, it’s important to read the fine print associated with high-yield savings accounts before making the switch.

 

3. Schedule your splurges.

When you go “cold turkey” on a regular purchase you enjoy — such as specialty coffee — it can lead to binge-spending later on. Instead of taking this austere approach to saving money, limit your splurges to paydays and either Friday (to celebrate!) or Monday (to soothe!). That way, you’re not cutting yourself off entirely and spending less on splurges. Plus, when you space out your splurges, they become less routine and more of a treat.

4. Bring back the change jar.

Collecting spare change in a jar may seem like an old-school approach to saving money, but it’s an effective one. While Americans use less and less cash these days, change still collects nonetheless. Instead of having it clutter your car, wallet and couch cushions, collect it in a jar and deposit it in the bank to add to your savings goals. Too modern for the change jar? Try Digit, an app that reviews your spending and transfers unused funds every few days to an online, FDIC-insured bank account. You receive a text whenever funds are moved, and you can request funds back at anytime.

5. Use mobile coupons.

Finding, clipping, printing, storing and, ahem, remembering coupons can be a hassle, but couponing is a great way to save money on purchases you’re planning to make. Mobile coupons like those offered through CouponSherpa.com make the task much easier, giving you digital access to retail, restaurant and local coupons. Grocery stores including Kroger and Safeway offer digital coupons through store apps, enabling users to browse through deals and redeem them by swiping loyalty cards. With coupon apps, you get the savings without the clutter and won’t ever leave home without a discount again!

6. Adopt 24-hour rule.

Impulse buys are the bane of savings goals and, by their nature, incredibly hard to resist. From candy bars at the grocery store checkout to candles, mugs and stationery adorning the queue at TJ Maxx, you can easily spend an extra $15 you didn’t plan to. To save money on these hard-to-resist items, adopt a 24-hour rule: don’t buy anything you didn’t intend to without waiting an entire day. If you’re still thinking about the item, go back and buy it. In most cases, the urgency subsides within moments of your leaving the store. 24 hours not enough? Wait a week or a whole 30 days.

7. Review your expenses.

Saving money on everyday purchases may add up to a few dollars here and there, making it frustrating for consumers looking to save big money. When you can save $10 or more each month, that’s when you feel like you’re getting somewhere! Review your recurring expenses and look for ways to reduce your monthly costs. This may mean cancelling subscriptions you no longer use, upping deductibles on auto insurance, or changing insurance providers entirely. Regularly auditing your recurring expenses ensures you’re not overpaying for services and keeps more money in the bank.