10 Financial Moves To Boost Your Savings in 2024
Written by
Nicole Spector
Edited by
Carly Brashears
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As 2023 winds down, many of us are reflecting on how we went right — and how we went wrong — with our finances over the past 12 months. We may also be wondering what we can do to improve our financial health in 2024, particularly as we begin to narrow in on our New Year’s resolutions.
One area we may want to focus on is our savings, especially since many of us didn’t have the opportunity (or the tools) to build up our nest eggs as much as we may have liked to in 2023.
Consider these 10 expert-recommended financial moves to make to boost your savings in 2024.
Review Old Financial Goals and Set New Ones for the New Year
Your situation may look different in 2024 than it did in 2023. Perhaps you’re buying a home for the first time, or getting divorced or having a baby. The list goes on. Get on track with new goals to help you save more.
“This could involve minimizing dining out, entertainment expenses or subscriptions that are not essential,” said Anthony H. Williams, certified wealth management advisor at Northwestern Mutual. “Make your financial goals for the new year specific and measurable. Scatter realistic deadlines during the year towards your goals, whether it’s paying off holiday debt or saving for a vacation.”
Opt for Debit Over Credit
Though there are situations where it’s smart to use credit cards (when cashing in on points or nabbing cashback rewards, for example), those really only come into play for people with zero credit card debt and a plush pile of savings. Everyone else should seriously consider dumping their dependency on credit cards and spending only what they could come up with in cash.
Taking a debit- or cash-only approach can help you spend less and save more.
“People spend 80% more with a credit card than with a debit card,” said Jenny Groberg, CEO of BookSmarts Accounting and Bookkeeping. “When you’re not paying for something immediately, it’s less psychologically painful and then you end up overspending.”
Pay Off High-Interest Debt ASAP
Speaking of credit cards and debt, it’s critical to pay off high-interest debt ASAP. consider the “Snowball Method” — once you’ve established your emergency fund.
“That’s where you continue to pay the minimum payments on all of your credit cards, loans, etc., and pay whatever amount you can on top of the minimum payment to your smallest balance,” said Mark Henry, founder and CEO at Alloy Wealth Management. “Keep doing that month after month until the smallest balance is paid off. Then move on to your next smallest balance and roll that money you were paying on the other debt into the next one, creating a snowball effect.”
This method will help you save more, and, ideally it will give you a sense of accomplishment and pride every time you knock out a debt.
Treat Your Savings Like Any Other Bill
A great move to make is to think of your savings as a “bill,” or financial obligation.
“Hold yourself accountable is to treat it like any other necessary expense and pay yourself first,” said Henry. “Savings should be a priority, not an afterthought with whatever leftover money you can scrape together this month.”
Automate Your Savings — With the Help of Your Employer
Perhaps you’re already automating your savings (you should be!); or maybe you could use a little more push to do so, with the help of your employer.
“Automate your savings by asking your employer to split your paycheck direct deposit into two accounts,” Groberg said. “Have 10% of your income go to a savings account (20% is even better if you’re able), then have the rest of your paycheck deposited to checking. That way you won’t have to think twice about setting aside money for savings.”
Have A Solid Budget Plan — and Track Your Spending
It’s one thing to say, “Oh, I am going to get better at budgeting this year”; it’s quite another to have a solid, tried and true budgeting rule in place. The latter is definitely clearer and smarter.
“A good rule of thumb is the 50/30/20 rule: 50% of your income should be used for necessities, 30% for wants and 20% for savings/retirement,” Groberg said. “Also, use a software or app to track your spending. Share it with your spouse or partner. When you can see where your money is going, you’re able to quickly see and reassess spending habits.”
Get a High-Yield Savings Account (HYSA) or Certificate of Deposit Account (CD)
If you keep any of your savings in a checking account or even a traditional savings account, move it over to a HYSA or a CD,” Groberg said. “These have high interest rates currently and don’t need research or a lot of time to be beneficial.”
Set Aside More Than You Think You Need To Adjust for Rising Costs of Living
How much you need in your retirement savings depends on your situation, as well as your location. But to be safe, always set aside a bit more than you think you’ll need down the road.
“Taxes, healthcare and living expenses are only going up,” said Kelly Ann Winget, CEO, founder and fund manager at Alternative Wealth Partners.
“You want to plan for 10 more years of expenses than you think and make sure that your annual dollar amount increases 2-4% every year from the moment you retire,” Winget said. “For example: if you want to retire at 60, you will need around 25-30 years of income saved or invested and generating income.”
Dial Down Energy Usage
You don’t need to make drastic moves to save on utilities. You can make easy moves here that will allow you to contribute more to your savings.
“By adjusting your thermostat 7-10 degrees from your normal settings, you are looking at saving up to 10% on electricity expenses, according to the Department of Energy estimates,” Groberg said. “Invest in ceiling fans and caulk doorways and windows to eliminate air leaks.”
Meet with A Qualified Financial Professional to Customize Your Savings Plan
Lastly, it’s highly recommended to at least meet with a financial expert to help you get on track with all things money related.
“A professional will help you adjust your finances to meet your unique needs and goals, from paying off debt to boosting savings and planning for the future,” Henry said. “I would especially recommend professional help when it comes to retirement planning and investing, as a professional will help you to create a solid, long-term plan built to withstand economic fluctuations.”
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