Supercharge Your Savings: 9 Everyday Tips

Everyone wishes they made more money. The key is making the money you have work harder to help you reach your financial goals. These nine tips will help you fire up your savings strategy, even if you’re starting from scratch:

1. Don’t procrastinate, calculate

   One of the best ways to motivate yourself to start saving? Use one of our investment calculators, like this handy Millionaire Calculator. Plugging in numbers will help you identify how much to save today to reach your someday goals. 

2. Multiply your money

   Compound interest is math we can all love – it’s when the initial amount of money (the principal) you put into an account earns interest, and then that interest earns interest. For the greatest impact, choose a high-yield savings account and watch your money grow.

3. Save for an emergency fund

   At some point, you’ll need one, and you don’t want to use high-interest credit cards to get through tough times. Prioritize having three to six months of expenses and park it in your high-yield savings account.

4. Don’t pass up free money

   If your employer offers a company-sponsored 401(k), sign up. Often employers will match your contributions up to a certain percentage (for example, 3%), so if you’re designating 3% of each paycheck, your employer match will double that amount. 

5. Consider a Roth or Traditional IRA savings account

   You may be self-employed, or maybe your job doesn’t offer a 401(k). You can start a Roth or Traditional IRA on your own. Even if you have a company-sponsored 401(k), you may want to add an additional retirement savings account to your mix.

6. Decide whether to rent or own a home

   Both have benefits, but when you buy you get to watch your home equity grow, and you’ll sleep well knowing you’re literally resting on part of your nest egg. To help you decide if owning a home should be part of your long-term savings strategy, explore how much house you can afford with our Mortgage Calculator.

7. Invest that bonus

   It’s so tempting to spend a hard-earned bonus. But if you’re doing OK financially, stash bonuses and tax returns in your 401(k), a long-term CD or IRA. Over time, these small windfalls can build big time.

8. Over 50? Play catch-up

   If you’re over 50, take advantage of catch-up contributions to maximize your retirement savings . If you can, curb spending to stretch your contributions to the max.

9. Set it and forget it

   You’ll be more successful if you set up automatic paycheck deductions for long-term investing and short-term goals. Research shows this tried-and-true tip will likely help you reach your goals – and get there more quickly.     

Lastly, remember what’s most important. Sometimes, despite our best efforts, we won’t have “enough” saved for retirement. But your net worth doesn’t define your self-worth. What’s important is to start somewhere and be consistent in simply doing the best you can.

For additional tips, read our blog: Seven Ways to Save for Retirement.