I’ve been a personal finance writer for five years. In that time, I’ve read and written countless articles about all the ways to make, spend, and save money more effectively.
Over the years, I’ve taken some of that advice and applied it to my own personal finances. Other tidbits have been left on the cutting room floor because — let's face it — financial advice is not one-size-fits-all. And it shouldn't be.
For example, when it comes to saving money, I’ve always resented the idea that feeling strapped is normal. In the past, when I deprived myself and directed most of my hard-earned money to a savings account for a later date, I was actually less motivated to save.
In my opinion, the best savings strategies are about finding the right balance between caring for Future Me while ensuring Present Day Me doesn’t feel like she’s making too many sacrifices or going without.
Over time, I’ve implemented several key habits that fit my lifestyle and make saving money easier. Maybe they’ll work for you too.
1. Take advantage of a high-yield savings account (HYSA)
Here’s a hard truth: Money sitting in your wallet, underneath your mattress, or even a traditional savings account isn’t growing as much as it could be. In fact, you’re probably losing money to inflation.
With a high-yield savings account, however, you could earn as much as 5% APY on your balance. And the interest you accrue will also begin to earn interest thanks to the magic of compounding.
Before you open a high-yield savings account, you’ll need to read the fine print and consider account fees, minimum balance requirements, how easy it is to access your funds, and more.
Not sure where to start? Check out our ranking of the 10 best high-yield savings accounts available today.
2. Set up automatic contributions (but check your account balance periodically)
This is a big one. I got into the habit of automating my savings early on. It was more effective to set aside a portion of my paycheck before I could think of other ways to spend that money. This allowed me to adjust to working with a little less money every payday, all the while knowing that my savings account balance was growing in the background.
Even so, I still like to log in periodically to check on my savings account balance and see how it's grown over time. It gives my motivation a boost and makes me feel more secure in my future goals.
3. Be intentional about how you use financial windfalls
If you’ve ever received a work bonus, you know the temptation that can come with seeing a lump sum of cash land in your bank account. The first time I earned a bonus, some part of my brain was already working out how I’d use that money to help fund my next vacation. But then the finance writer in me kicked in, and I held off on purchasing plane tickets.
Instead, I decided to take a small portion of my bonus for a splurge (sometimes you have to scratch the itch and treat yourself). Then I put the rest of my bonus toward paying off my car loan. By making this decision, I felt I had rewarded myself for my hard work and still made a move that got me closer to my financial goals.
Paying off my car freed me of a monthly payment that was significantly eating into my budget. Moving forward, I had extra income to deposit into my savings, invest, and direct toward other debt payments.
Since then, whenever I’ve received a bonus, tax refund, or any unexpected money, I’ve made it a habit to treat myself in a small way and look for ways to improve my finances in a more meaningful way.
4. Budget for at least one night out or activity each week
Prioritizing my savings goals required me to pare down my social outings — but not entirely. Investing in my friendships and activities that bring me joy is also a priority for me. I even made it a line item in my budget.
Setting aside funds to cover dinner with friends, a movie night, or some other activity at least once a week gives me something to look forward to and makes it easier to make smaller sacrifices.
For example, if I plan to attend a birthday dinner on a Friday night, I'll feel more motivated to cook for myself throughout the week in anticipation of that expense.
Read more: Struggle with budgeting? Following the 50/30/20 rule could be your solution.
5. Outsource to save time and money
This may be a hot take, but delivery services have helped me save money on groceries. Admittedly, grocery delivery apps involve some subscription costs and fees, but they have helped me scale back on impulse purchases, resulting in overall savings.
When something looks good at the store, it's easy to chuck it in your shopping cart without a second thought. But by outsourcing my grocery shopping, I'm more likely to buy only what I need. This method of shopping has also made it easier for me to plan my meals for the week and reorder the same groceries at a later date so I don’t have to spend as much time on these tasks.
Many apps allow you to filter items by price or have a tab specifically for sales and discounts, too.
Other tasks that you can outsource include cleaning, laundry, gardening, and more. Consider using some of your newfound free time to work on freelance projects for extra income or perform a financial check-up to see where you can save even more.
6. Consider a rewards membership with your favorite retailers
If you're a regular at any store, you may be asked to join a rewards program at some point. Sometimes, it pays to sign up if you're a frequent shopper. Many retailers offer discounts, cash-back rewards, or even special pricing for rewards members. You may also receive emails or text alerts that inform you when there's a sale.
That’s why if my favorite stores or nearby gas stations offer free rewards programs, I always take the extra few minutes at the counter and sign up. Of course, the key is to avoid impulse buys or overspending when I find out about a great deal. The goal is to be rewarded for future purchases I planned to make anyway.
7. Audit your subscriptions
I have been guilty of downloading and paying for a subscription and then forgetting about it, or downloading a trial version of an app and neglecting to cancel the subscription before I'm charged.
For that reason, I’ll periodically go into my phone's settings and visit the subscriptions tab to review my active subscriptions and how much I'm paying for them. If an app is set to be renewed soon, I’ll consider whether I actually use it or if it's time to cancel my subscription.
I also check my bank statements for subscriptions outside of the App Store. You could also consider setting up alerts with your bank or through a money-saving app for upcoming recurring transactions.
8. Put potential purchases on ice
When you put a purchase "on ice," you hold off on buying it for a certain amount of time, giving yourself a chance to reconsider whether you really need it. While I don't necessarily practice this when purchasing a coffee mug or a pack of gum, I do if it’s a purchase above a certain dollar amount.
If I see a specific item I'm interested in purchasing, I'll create a note on my phone with the price and link if it's available online. Then I revisit that note a few days or weeks later.
Sometimes, I decide I really do want that item. It may have even gone on sale, which can be an added bonus, or I may have had time to find that same item for a lower price somewhere else.
In most cases, though, I’ve entirely forgotten about the item or decided it's not worth the price tag after some time and distance.
In other words, putting purchases on ice doesn't always prevent spending, but it can give you the chance to make a more informed decision about your purchase.
9. Join the AARP
At the start of my career, I learned from a financial influencer that there is no minimum age to join the AARP (formerly known as the American Association of Retired Persons).
The organization is focused on people over 50, but anyone 18 and older can get a membership and take advantage of discounts on dining, hotel and resort stays, airfare, car rentals, cruises, insurance, and so much more. The annual membership usually costs $16, but it’s going for $12 right now.
10. Rent clothing
As a 20-something with a slew of weddings, rehearsal dinners, baby showers, and the like filling up my social calendar, it feels as though I always need a new outfit for an upcoming event.
One way I've managed to save money is by renting clothing rather than buying it. Many different clothing rental services give you access to high-end pieces without the high-end price tag and allow you to refresh your wardrobe at a fraction of the cost. This is especially true when it comes to special occasion outfits that you'll probably never wear again.
You can also use these services to swap out your everyday wardrobe, try different styles, and decide which pieces are worth investing in.
11. Get comfortable with saying 'no'
There can be a lot of social pressure to spend money when you don’t necessarily want to. Learning to say “no” has been one of the most effective and empowering aspects of my money-saving journey.
There are instances when declining an invitation is the smartest move, whether it’s skipping dinner with friends at a high-end restaurant outside of my budget or politely declining an invite to a destination wedding and sending a gift instead. (You may have heard TikTokers refer to this as “loud budgeting.”)
Changing my mindset to see saying no as an empowering and necessary step toward reaching my savings goals rather than a limitation has made all the difference.