16 Effective Tips and Tricks To Help You Save Money (2024)

The cash bonus can help you achieve your financial goals faster.

Perhaps the simplest way to save without even thinking about it is to set up an automated savings plan. Most financial institutions allow you to set up regular transfers from your checking account to a savings or investment account.

Automation is a great way to save because it can be hard for most people to remember to make a savings deposit, let alone finding the will to do it. Automated transfers take that job out of your hands. To save even more, consider transferring your funds to a high-interest savings account.

Make Your Money Work for You

Once you’re on an automated savings plan, the way to really build your savings is to increase those savings by 1% every six to 12 months. For example, if you’re setting aside 10% of your paycheck, reset it to increase by 1% to 2% the following year, and every year thereafter.

In such small increments, it’s easy to adapt to the higher savings level. And, before you know it, you’ll save a large portion of your paycheck automatically.

If you don’t feel comfortable turning over your financial monitoring to an app, no problem — keep the change yourself. Whenever you come home, whether from a hard day at work or a fun night out on the town, toss whatever change you find in your pockets into a jar.

Most people don’t like carrying change anyway, so this trick kills two birds with one stone. You’ll lighten your pockets, and before you know it, you’ll have lots of spare change saved up that you can deposit into a savings account.

This trick involves rewiring your brain to think of extra money as exactly that. Anytime you get a raise at work, a year-end bonus, a cash recognition award or any type of financial gift — put that money immediately into savings.

If you’ve already been getting by on the money you’ve been earning, you don’t really “need” to be spending this extra windfall. Instead, most people are likely to blow a paycheck on “wants.” You can certainly use some of the money as a reward just to satisfy that urge, but the bulk of it should head toward your savings.

Make Your Money Work for You

If you give one of your savings goals a specific name, such as “Tahiti” or “Maserati,” you might be more likely to try to hit that savings target.

Naming or defining goals could help you move in the right direction and has proven to be more effective than simply putting money toward that vague category of “savings,” according to a behavioral finance concept called “mental accounting.”

When you treat paying yourself like a bill, thisensures that no matter what happens in a given month, you hit your savings goal.You’ll hit savings goals even faster if you put your funds into a high-interest savings account.

Make Your Money Work for You

As long as you pay your balance on time and in full, you’ll be getting free money just from making purchases as you normally would. Although 1% to 5% doesn’t seem like much, it can really add up over time.

If you have to work hard to get your money, it can help dissuade you from spending that money on frivolous purchases.You might even decide you don’t need to take out that cash by the time you get to your cross-town bank.

Some people are competitive in nature, so this is a productive way to make use of that trait. No matter who “wins” this competition, you’ll both be winners, as you’ll have saved during it.

Make Your Money Work for You

This waiting period will help you weed out “wants” from “needs” — which should provide some clarity about the way you spend your money.

Visualization can be a powerful tool for achieving financial goals. If you’re having trouble saving, visualize yourself doing it as well as the end goal of the saving, whether it’s buying a house, taking a dream vacation or retiring rich.

Research has shown that creating mental images of yourself doing something actually shapes your brain’s processes much in the same way as actually doing something does. Visualizing yourself as a good saver who achieves their financial goals can help you to take the actions necessary to actually do it.

It’s easy to get wrapped up in the “treat yourself” mentality. You might feel like you somehow “deserve” that $500 leather jacket you’ve been eyeing, and swiping a credit card is such an easy and painless action that you might not think twice about it. However, if you take the time to mentally calculate how long it took you to actually earn that leather jacket, you might be less inclined to buy it.

Make Your Money Work for You

Taking the time to mentally quantify purchases in terms of hours worked might give you pause before you whip out your credit card. If you make $20 an hour (after taxes), that means you’ll have had to work 25 hours — over three whole workdays — to pay for a $500 jacket. When you think of money through those lenses, you’re probably less inclined to make big splurges.

Another mental game to play before making a purchase is to take a moment to think about if you’d rather have the item or the cash it’s worth. For example, if you want to buy a $75 pair of jeans, take a moment to think about if you’d rather have a stranger gift you the jeans or $75 in cash.

This is another way to pause and really think about a purchase before you actually make it, which can prevent any frivolous or impulse spending.

This might seem counterintuitive, but one way to save more overall is to allow yourself planned splurges. Determine ahead of time how much you will splurge and how often so things don’t get out of hand. This can be anything from a spa mani-pedi every two months to a nice bottle of wine every couple of weeks.

In some ways, saving is like dieting — there’s an aspect of deprivation involved. If you’re on a diet and you know you can never eat cake, you’re probably going to want it even more and will find yourself “cheating” every chance you get. But if you tell yourself you’re allowed to eat cake once a week, you’re less likely to crave it all the time and will be more inclined to stick to your healthy eating. The same goes for saving. If you tell yourself you can never buy anything fun and have to save every last penny, you’re likely to “cheat” with little splurges here and there. These little splurges can easily add up, so it’s better to plan ahead for your splurges and stick to your savings plan strictly the rest of the time.

Make Your Money Work for You

If you’re about to finish paying off a student loan, car loan, mortgage or credit card debt, congratulations! But before you start spending that money elsewhere, consider putting it right into savings each month.