How to Get Better at Saving Money

Saving money is a vital financial skill as it allows you to be prepared for emergencies and make big purchases such as automobiles, housing, or paying for higher education.

Many people sadly do not have much in the way of savings and a sudden emergency repair such as a new water heater can cause a great deal of financial stress. If you’re looking for ways to get better at saving your money, there are ways to do so. Improving your ability to save is often based on improving your money management skills.

Here are three ways to get better at saving money and improving your overall financial situation.

How to Get Better at Saving Money: Three Ideas

1. Find a High-Yield Savings Account

If you have leftover money at the end of the month, odds are it’s sitting in your checking account. Your extra money or emergency fund should not be your regular checking account. Funds that are used to pay bills quickly enter and exit your account. However, money sitting there long-term can be put to better use. High-yield savings accounts are typically found online, and these accounts offer high savings rates due to having lower overhead because they do not have physical locations. These accounts are safe because they are backed by major banks and financial institutions. If you are comfortable accessing your money online or through an app, these accounts are an easy way to grow your savings. Another method of increasing your savings is using DeFi (decentralized finance). If you are comfortable using technology and cutting-edge methodology, then the use of yield farming can help generate positive results with the money you hold in savings.

2. Work On Your Budgeting Process

An ineffective budget can also harm the ability to build your savings. A budget needs to be thorough and account for every single expense. Many budgets don’t account for minor daily expenses such as take-out or morning coffee. These types of easy-to-miss expenses do add up quickly. A budget that accounts for everything allows you to get a clear picture of where your money is going. Once you account for every dollar, then you can start making changes to hold onto more of your money.

3. Find Ways To Earn Extra Income

In some cases, money is just tight and the majority of what you make is going to expenses that cannot be reduced or cut back any more than you already have. In these situations, the only solution is finding a way to make a higher income. The broader solution is to find a better-paying job. If it’s been several years since you looked at the local job market, it certainly does not hurt to see what’s out there. If you are underpaid for your skills and experience, changing jobs (even in the same industry) can be a viable solution. In cases where you cannot change your main source of income, side jobs, and freelance work do exist. Freelance work in writing, computer work, customer support, and a variety of industries can be found online. There are other ways to make money, such as selling on online auction sites or doing short tasks such as surveys.