If you’re committed to saving more money this year, there’s no shortage of ways to do so. Maybe you’ve struggled with the willpower to actually put money in savings.
Maybe you hope to save more each month or you simply want to make sure your money is in the right place.
No matter what your goals are, there’s no time like the present to get started. Here are some seriously smart things you should do with your savings in 2024.
Automate Your Savings
When your entire paycheck is at your fingertips, it can be tempting to spend it on things you really don’t need. If you wait to put money aside, it’s not uncommon to run out of cash before you’ve put anything into savings even with the best of intentions.
Avoid this by setting up an automatic debit from each paycheck to your savings account. This ensures you’ll put money aside each month, without having to even think about it.
Of course, this doesn’t mean you can’t save more than this set amount each month. If you have extra money at the end of the pay period, send that to your savings account as well.
Make Sure You’re Earning 11 Times the National Average
One of the best things about putting your money in a savings account is the ability to earn interest. However, you won’t get very far with a bank paying the current national average rate on savings accounts 0.47%.
Therefore, it’s important to seek out a high-yield savings account with a seriously competitive rate. For example, Jenius Bank™ currently offers a 5.25% APY¹on its Jenius Savings account — 11 times the national average².
There’s no minimum balance requirement, and deposits are insured by the FDIC up to $250,000³. Better yet, Jenius Bank doesn’t charge fees on its savings account.
Interested in earning 5.25% APY on your savings? Get started here.
ALSO CHECK: Retirement Planning Essentials: Securing Your Financial Future
Build a Designated Emergency Fund
Generally speaking, experts recommend having three to six months’ worth of living expenses set aside in an emergency fund. Financially speaking, this can be a lifesaver.
If you lose your job or have a major unplanned expense, such as a medical bill, car repair or emergency home improvement you’ll have the cash to handle it.
Instead of being forced to rely on credit cards or high-interest loans, you can turn to your emergency fund.
This can help you avoid racking up debt that can take years to pay off.
Set Savings Goals
If you’re like most people, you have several savings targets in mind. For example, you might be saving for a down payment on a home, a summer vacation this year, or if you’re really on top of things, maybe you’re already thinking about buying holiday gifts.
Make each of these objectives a reality by determining how much money you’ll need to achieve each one and creating a plan to get there.
For example, if you need $2,000 for your summer vacation, you might want to save around $300 per month toward this goal, starting in January.
Creating structured goals helps motivate you to save, because you can envision what you’re working toward and see the progress you’re making along the way.
It also increases the chances you’ll have enough money to fund them, because you know exactly how much you need to save each month.
Start an Educational Fund
Invest in your future or a loved one’s by opening a 529 plan account. This tax-advantaged savings account is designed for college expenses at accredited schools across the U.S., as well as tuition expenses for K-12, some apprenticeship costs and student-loan repayments.
You’ll pay no income taxes on the money while it’s in the account. Additionally, when you make a withdrawal, you might not have to pay federal or state income taxes on the funds.
Increase Your Retirement Savings
If you’re not currently maxing out your retirement savings each year, consider making this a habit — or at least get closer to meeting this goal. In 2024, the 401(k) limit increased to $23,000 and the IRA limit grew to $7,000.
Even if you can’t make it to these numbers, try to increase the amount you’re saving from each paycheck by at least 1%. It might not sound like a lot now, but this will make a big difference on your retirement account balance even by the end of this year.
7. Find More Ways to Save
No matter how much you’re currently saving each month, there’s a good chance you can put aside even more. Take a close look at your spending to see how much you’re shelling out for variable expenses i.e., entertainment, groceries, dining out, clothing, gas.
Cutting even a little from each of these categories can result in big savings over time. For example, $50 saved per month is $600 extra per year that can be put in your savings account.
- Jenius Bank is a division of SMBC MANUBANK. Member FDIC.
- Variable Annual Percentage Yield (APY) as of 2/13/2024 and subject to change at any time.
- The national average rate is accurate as of 1/16/2024 from the FDIC National Rates and Rate Caps for Savings deposit products.
- FDIC Insurance up to the maximum allowed by law. Deposits at Jenius Bank and SMBC MANUBANK are combined for the purpose of calculating FDIC insurance limits.
