GOBankingRates

All You Need to Know About Saving Money

Saving money can be a frustrating endeavor, especially when it feels like the bills are piling up faster than you can pay them. But saving money isn't just a good idea; it's absolutely essential. For instance, if the transmission on your car suddenly stops working, are you going to have the money to replace it?
Life is unpredictable, and a good nest egg can help you to weather the inevitable storms. Besides savings for emergencies, though, there are actually numerous benefits to saving money, including: vacations, a cozy retirement, education, a growing familiy or an improved standard of living. But it's easy to understand why you should put money away. The tricky part is actually understanding how to save money, and then zeroing in on the best ways to save money. When you decide to become financially responsible and start putting money away, your first course of action should be to open a good savings account. Compare the best interest rates of different savings accounts, and bear in mind that some of the best savings accounts are online savings accounts online savings accounts due to low overhead costs of online banks. Keep in mind that some savings accounts require a minimum deposit.
Make it a point to put money in your savings account every time you receive a check. Only you can determine how much of your paycheck you can afford to save, but the key is consistency. Even if you can only place 10 percent in savings, do it every time. Those small savings will add up. If you want to put money aside for a rainy day, it's important to understand that your saving habits are directly tied to your spending habits. By trimming unnecessary expenses, you can save money without even trying. Here are some basic money saving tips:
  • Opt for a free checking account.
  • Don't be ashamed to clip coupons.
  • Send credit card payments at least a week before their due dates.
  • Shop for deals online: Hotels, restaurants and even airlines often offer deep discounts, but you have to compare.
  • Cook your own food more often, using fresh ingredients.
  • Refinance your mortgage, but only if you can secure a rate lower than your current rate.
  • Determine the best time to buy
Saving money is all about using common sense, and sometimes the best ways to save money involve small, incremental changes. Even things like switching to generic toothpaste brands and cutting back on 4-dollar lattes can leave you with a much larger balance in the bank at the end of the month. But if you really want to know how to save money, the answer can be summed up in one word: Discipline. It's okay to splurge once in a while, but in general, remember the value of your hard-earned cash and constantly be on the lookout for ways in which you can get the best values. Just because you have a few extra dollars in the bank does not mean that you have to run to Las Vegas for a weekend of reckless spending. Saving is freedom. Read more FAQ and Saving Money Top Lists.

Featured Banks

Explore Best Banking Rates

Most Read Saving Money Articles

Senator Elizabeth Warren’s 50-30-20 Rule Could Finally Fix Your Budget

Find out how simple saving money can be with just 20 percent of your income.

Read More »

National Pie Day: 18 Deals, Discounts and Freebies

See where you can get a free slice of pie on Jan. 23.

Read More »

52-Week Savings Challenge No. 38: How to Slash the Cost of Movie Tickets

Why pay $20 when you can pay $10 to see the newest movie?

Read More »

52-Week Savings Challenge No. 37: Go Used for a New Look

Have a hot date or formal event and need something new to wear? Try a swap site instead of buying new.

Read More »

9 Strategies for a Cheaper Night Out

Party like a rockstar, save like a pro.

Read More »

Cutting These 10 Everyday Expenses in 2015 Will Save You $8,833

That $2 coffee could cost you hundreds.

Read More »

52-Week Savings Challenge No. 36: Make Your Credit Card Debt Cheaper

Why pay interest on multiple cards when consolidating your debt is simple? Here's how much you'll save by taking this simple step.

Read More »