6 Ways Anyone Can Save More Money This Year

Maybe you've tried to build savings in the past and a surprise bill messed you up.  Today, with prices continuing to climb at the grocery store and everywhere else, you might have given up.

I've been there too.  For years, my husband and I would save a little only to draw the account down a few months later.  Inflation or life events would derail our plans.

When costs are unpredictable, saving can start to feel impossible.  But building savings doesn't have to rely on willpower, perfect timing, or a lucky lottery win.  Instead, you can focus on small, repeatable systems that work with real life, no matter what happens.  These are systems that keep moving forward even when prices climb or plans change.

Steps to make saving a reality

1.  Start small with a "savings drip." 

Psychologically, tiny deposits keep momentum going in the right direction without triggering scarcity, especially when the cost of groceries, utilities, and insurance premiums may be edging upwards.

• Auto-transfer $5-$25 every payday to a separate savings account you don't touch.
• Use a high-yield account so your savings accumulate faster.  A local credit union may offer the best rates.
• When budgets feel tight, you can lower the drip, but don't stop it.

2.  Put money where it grows, not where it's convenient.

If your savings are sitting where they've always been, that's understandable.  Most of us open an account once and move on.  But over time, "set it and forget it" can cost you.

Making your savings work harder doesn't require taking risks or changing habits.  It usually just means putting your money in a place that serves you better.

• Take a few minutes to compare savings rates at credit unions or online banks.  Moving an emergency fund can feel like a hassle, but it could be a switch that pays you back every month.

• If part of your savings won't be needed for 6-12 months, consider laddering share certificates to lock in a higher rate while keeping some of your money fully liquid.

3.  Budget for reality.

Last year's budget may no longer work for you because everyday costs have increased more than you anticipated.  But a realistic budget isn't about deprivation.  It's about updating your plan so it works for your life today.  Take 20 minutes for this refresh:

• Make a list of categories that quietly crept up this year and now take more of your paycheck.

• Increase caps where costs are unavoidable, and trim areas you're no longer using or valuing, like forgotten subscriptions or unused memberships.

• Set aside a little each month for irregular but predictable costs like auto maintenance, license fees, or holidays.  When they hit, they'll feel less like emergencies.

A budget that acknowledges reality – rather than fighting it – gives you more control and a lot less stress.

4.  Put away your MasterCard.

Credit card balances and delinquencies keep rising, indicating a lot of financial insecurity.  Removing debt (and those ever-growing interest charges) is the fastest way to free up cash for savings.  There are several options:

• Snowball/Avalanche:  Pay either the smallest balance or the highest interest rate first – whichever keeps you motivated and consistent.

• Ask for an interest rate reduction.  A phone call could lower your rate, especially if you've been paying on time.

• Transfer to a zero-interest card.  If you can, roll your balance onto a card that gives you a grace period on interest charges, and put more of your payment toward reducing debt.

5.  Automate "boring" wins.

You don't need to overhaul your life to make progress.  It's easier to set up simple systems than to make big resolutions that don't last.

• Use a bill calendar and autopay services to avoid late fees and protect your credit rating.

• Round up every transaction as you enter it into your register (enter $34.23 as $35.00, for example), then transfer the accumulated funds into savings each month.

• Every three to six months – and whenever you get a raise –increase your savings drip (see #1) by $5.  This is small enough to feel easy, but it's meaningful over time.

6.  Use simple swaps to save more.

It's not necessary to slash your lifestyle if you try some of these smart ideas:

• Shave grocery bills by swapping brands and/or stores, not meals.  Prepare your usual recipes, but opt for store labels or buy some of your staples in bulk.

• Figure out the SEA – Smallest Effective Amount – for personal and home care products.  Keep reducing what you use for each application until it's ineffective, then use just a smidgen more.  Everything will last longer, saving you money and even reducing the number of plastic containers you recycle.

• Nudge utility use.  Lower (or raise) your thermostat by just two degrees, swap bulbs for LEDs, wash clothes in cold water, take shorter, slightly cooler showers (better for skin and hair, too).

• Shop for insurance.  Get home and auto quotes annually, and remember that bundled or usage-based policies can often save 5%-10%.

• Enjoy public perks like libraries, parks, local festivals and parades, community museums and art shows, etc. in place of paid services.

When rising prices, high interest rates, and unexpected costs occur, it can feel impossible to save, increasing your financial stress and maybe even erasing your hopes and plans for the future.  Use these six simple, repeatable steps to gain control of your money for good.

If you liked this post, check out my books Simple Money and The Wealthy Minimalist.  Together, they discuss multiple subjects, with tips to help you manage your money simply and effectively.  Look for my Minimalist Money series on Amazon.*

* This blog is supported by readers, not ads.  If you purchase through my links, I may earn a small commission.