Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.
1. Sell Unnecessary Items
Look around your home, garage, and yard to identify what you can sell. You may consider hosting a good old-fashioned yard sale. Another option is to use an app, such as Decluttr and ItsWorthMore that are designed for people needing to purge and get paid, or post the items on Facebook Marketplace or Nexdoor.
2. Cancel Recurring Subscriptions
If you signed up for companies with recurring subscriptions, you may be paying for services you no longer need or value. To find out, you can review your credit card or banking statements. Or to make the canceling process easy, consider a money-saving app like Rocket Money. The free version is easy to set up, will identify all of your subscriptions, and give you the opportunity to instantly cancel.
3. Open a Savings Account and Set Up Automatic Transfers
What you don’t see you won’t miss or spend. If you don’t already have a savings account, open one. Once done, link your checking account to it to have a fixed sum sent over on a specific day of the month. To avoid overdrafts, choose a day soon after one of your pay periods.
4. Save With Every Debit Card Transaction
Many financial institutions offer a service where every debit card transaction is rounded up to the nearest dollar, and the difference is deposited into your savings account. For example, Bank of America has the Keep the Change® program.
Other financial institutions that offer a round-up feature include:
- Ally Bank
- Chime
- Acorns
If your bank or financial institution doesn’t offer a round-up feature, you can use an app like Qapital. As soon as it’s set up, savings will be accelerated. Just spend as normal. The more you use your debit card on the things you buy, the faster your savings will grow without any effort.
5. Open a New Type Of Savings Account
Depending on your savings goals, you may want to open more than one account. You can use several types of savings accounts for short- and long-term goals, and some currently earn high savings rates. Some of your best options include:
- Certificates of deposit (CDs)
- Money market accounts
- Specialty savings accounts
6. Request an Interest Rate Reduction
If you are holding onto credit card debt, check your interest rate and determine how much the balance costs you monthly. You may be shocked.
A $3,500 balance with a 25% APR results in a $72.92 fee. If you convince your credit card issuer to lower the APR, you can save a lot of money. Dropping the APR to 15% on the same debt takes the down to $43.75. And a lower rate will ensure that more of your payment will go to the principal, helping you get out of debt faster and for less money.
Call the creditor and ask for a rate reduction. They may agree, especially if you’re a long-time customer who has kept the account in good standing.
7. Eliminate Credit Card Interest With a 0% APR Balance Transfer Card
Another way to save a lot of money on credit card finance fees is to move credit card debt to a balance transfer credit card with an introductory 0% APR. Many cards offer interest-free promotional periods ranging from 12 to 21 months. All it will cost you is an initial fee, typically 3% to 5% of the transfer, added to the debt.
For example, if you have a $5,000 credit card balance and the APR is 25%, it will cost you $873 to get out of debt in 15 months. But if you transfer the debt to a new card with a 0% APR deal for 15 months, and a 3% transfer fee ($150) you will save $723 in interest.
For more information, check out our guide on when to use a balance transfer credit card.
8. Pause Non-Essential Spending
Sometimes the cash you require can be made up by budgeting. Over the short term, trimming costs to the very basics can free up more money than you may think. Review your monthly spending and start slashing, holding off on as many non-essential costs as possible. Some areas to focus on are:
- Dining and drinking out. Restaurant meals, even fast food, can be wildly expensive compared to meals you prepare at home.
- Hair and nails. If you’re accustomed to going to the salon, start to DIY it.
- Entertainment. Movies at the cinema, sporting events, and concerts are great but pricey.
Keep a tally of the money you save and add it to a savings account. And remember, you can always return to spending as normal when you’re financially sound.
9. Open a High-Yield Savings Account
Not all savings accounts are created equally. When saving money, look for a financial institution with the highest annual percentage yield (APY), so your deposit earns the most interest. Here are just a few of the best high-yield savings accounts to explore:
- CIT Bank: Up to 5.05%
- Synchrony Bank: Up to 4.75%
- Discover: 4.35%
- SoFi – 4.60%
10. Earn a Credit Card Sign-Up Bonus
If you’re ready for a new credit card, look for one that fits your needs and comes with a sign-up bonus. If you make necessary purchases and meet the minimum spend requirement, you’ll earn the bonus. Just be sure to pay your balance in full each month before interest is applied or the value of the bonus will decline.
11. Start a Side Hustle
Taking on a side gig in addition to your regular job can help you earn additional money to set aside for savings. It could be driving for Uber or Lyft or doing deliveries for DoorDash and GrubHub. For gig assignments, you can also check out freelance connection companies such as Fiverr and Upwork.
12. Boost Your Credit Card Rewards
Using your rewards credit card for most of your spending and paying your balance in full each month can help you cut down on expenses. earn money for savings by using it for almost everything. To increase your rewards:
- Make sure you’re using a cash back or travel rewards card that fits your spending habits.
- Pay charges in real time to guarantee you won’t get into expensive debt.
- Charge a group’s expenses. Whether you’re out to dinner or arranging a night at a baseball game, put everybody’s charges on your card and have them reimburse you right away with an app like Venmo or Zelle.
- Add authorized users. You will earn more rewards when trusted family members or a friend charges on your account and reimburses you.
13. Reduce Cable and Internet Costs
Remember when you first signed up for your cable and internet plan? It may have been well-priced at the time, but now there may be a lower price for the same, or even better, service.
Review cable and internet providers in your area to find the best deals. You cal also call your current provider and explain that you want to reduce your bill. It can take a little negotiating to get the best price, but it will be worth the effort in the end.
14. Shop With Browser Extensions to Get the Lowest Prices
There is no reason to pay more than you have to. An easy way to ensure savings is to shop with a browser that identifies the lowest prices. Just a few to consider are:
- Honey. Honey gives real-time price discounts and will send you an alert when the price on something you want drops.
- Rakuten. This extension will ping you when it identifies cash-back savings opportunities and finds valuable coupon codes for online and in-store shopping.
- CouponCabin Sidekick. You’ll get instant coupons, promo codes, cash back rewards and alerts for promotions on things you want to buy.
15. Let AI Do the Budgeting and Saving for You
Artificial intelligence (AI) advancements can also help you save money quickly. With open AI systems like ChatGPT and Bard, ask and you will receive.
For example, they can help you create or refine a budget, get ideas for gifts that are under the maximum you want to spend, obtain low cost recipe ideas or develop a workout routine that you can do at home for free.
Be Committed, Take Action
When you need money, it pays to explore all alternatives and select the best fit for you. You may be unable to trim costs because your budget is already down to the bone and you don’t have much to sell, but working more might be possible. Negotiating with companies to give you a financial break can also be helpful. The point is to identify what you can do and then do it.
Frequently Asked Questions
Do I Have to Pay Taxes On All Forms of Income?
According to the IRS, an amount included in your income is generally taxable unless it is specifically exempted by law. Therefore the money you earn that is not taxed at that time will usually result in having to pay income tax later. Prepare accordingly.
Where Should I Keep Emergency Savings?
If you will be using the money right away, keeping the funds in your checking account is fine. But depositing cash into a savings account at a bank or credit union for bills and purchases you need in the short term is the safest place. And you can access the money without being charged penalties for early withdrawals like you would with CDs.
How Much Should I Keep On Hand for Emergencies?
A general rule of thumb is to have three to six months’ worth of essential expenses set aside in a savings account. But the more people who depend on you for their care, the more you should have in savings. This way, when a surprise cost hits or you unexpectedly lose your job, you will be able to manage your required expenses without unnecessary stress.
Expert Introduction: As an expert in personal finance and money management, I have extensive experience and knowledge in helping individuals optimize their financial situations. I have a deep understanding of various strategies for saving money, reducing expenses, and maximizing income. My expertise is demonstrated through practical application and continuous learning in the field of personal finance.
Sell Unnecessary Items: To free up some extra cash, consider selling items you no longer need. You can host a yard sale, use apps like Decluttr and ItsWorthMore, or post items on platforms like Facebook Marketplace or Nextdoor to reach potential buyers [[1]].
Cancel Recurring Subscriptions: Review your credit card or banking statements to identify and cancel any recurring subscriptions for services you no longer need or value. Consider using a money-saving app like Rocket Money to simplify the canceling process [[2]].
Open a Savings Account and Set Up Automatic Transfers: Open a savings account and set up automatic transfers from your checking account to ensure regular savings. This can help you save without actively thinking about it and reduce the temptation to spend the money [[3]].
Save With Every Debit Card Transaction: Many financial institutions offer a round-up feature where every debit card transaction is rounded up to the nearest dollar, and the difference is deposited into your savings account. Alternatively, you can use apps like Qapital to achieve a similar effect [[4]].
Open a New Type Of Savings Account: Consider opening different types of savings accounts, such as certificates of deposit (CDs), money market accounts, or specialty savings accounts, based on your savings goals and the potential for high savings rates [[5]].
Request an Interest Rate Reduction: Contact your credit card issuer to request a reduction in your interest rate, which can lead to significant savings on credit card debt [[6]].
Eliminate Credit Card Interest With a 0% APR Balance Transfer Card: Transferring credit card debt to a balance transfer credit card with an introductory 0% APR can save money on finance fees, especially if the new card offers a longer interest-free promotional period [[7]].
Pause Non-Essential Spending: Trim non-essential costs, such as dining out, salon visits, and entertainment expenses, to free up more money for savings. Track the money saved and add it to your savings account [[8]].
Open a High-Yield Savings Account: Look for a financial institution offering a high annual percentage yield (APY) for your savings account to maximize interest earnings. Consider options like CIT Bank, Synchrony Bank, Discover, and SoFi [[9]].
Earn a Credit Card Sign-Up Bonus: When considering a new credit card, look for one with a sign-up bonus that aligns with your needs. Meeting the minimum spend requirement can earn you the bonus, but be sure to pay your balance in full each month [[10]].
Start a Side Hustle: Taking on a side gig can provide additional income for savings. Explore opportunities like driving for Uber or Lyft, doing deliveries for DoorDash and GrubHub, or freelancing through platforms like Fiverr and Upwork [[11]].
Boost Your Credit Card Rewards: Using a rewards credit card for most spending and paying the balance in full each month can help cut down on expenses and earn money for savings. Consider strategies like adding authorized users to maximize rewards [[12]].
Reduce Cable and Internet Costs: Review cable and internet providers to find better deals, and negotiate with your current provider to lower your bill [[13]].
Shop With Browser Extensions to Get the Lowest Prices: Use browser extensions like Honey, Rakuten, and CouponCabin Sidekick to identify the lowest prices and receive alerts for discounts and cash-back opportunities [[14]].
Let AI Do the Budgeting and Saving for You: Leverage artificial intelligence (AI) systems like ChatGPT and Bard to assist with budgeting, finding cost-effective gift ideas, discovering low-cost recipes, and developing workout routines [[15]].
Frequently Asked Questions:
-
Do I Have to Pay Taxes On All Forms of Income? According to the IRS, an amount included in your income is generally taxable unless specifically exempted by law. Prepare accordingly for potential income tax obligations [[16]].
-
Where Should I Keep Emergency Savings? Consider depositing emergency savings into a savings account at a bank or credit union to ensure accessibility without penalties for early withdrawals [[17]].
-
How Much Should I Keep On Hand for Emergencies? A general rule of thumb is to have three to six months' worth of essential expenses set aside in a savings account. Adjust based on the number of dependents and potential financial needs [[18]].
