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Get the latest tips and tricks to help you save money effectively
Find simple tips to save money effectively so you can achieve your goals!
Being able to save money effectively is essential. Savings provides the foundation to achieve your goals and helps you get out of living paycheck-to-paycheck. But how do you achieve healthy savings on a tight budget with all your bills and other obligations?
These articles talk about the latest tips and techniques for saving money effectively. Learn better ways to set money aside consistently and the best strategies for making it grow so you can reach your goals.
Is There A Free Credit Card With Maximum Travel Points?
June 22, 2017 | Jason Steele
Yes, and it has an annual-fee cousin that’s even better.
Americans Wish They Saved More
June 21, 2017 | Gregory Cox
Not saving enough for retirement is a bigger regret than taking on too much debt
This “Money-Pit” Ruined Lindsay’s Finances
June 21, 2017 | Brian Bienkowski
It left the Notorious D.E.B.T. writer and her husband hopelessly in debt — but they’re making a comeback.
Student Loans: What America Doesn’t Know Is Killing Us
June 20, 2017 | Joe Pye
Most borrowers have no idea what they’ll owe in the future – or even how many years their loans are for
This Week Around The Web
June 20, 2017 | Brian Bienkowski
Make extra money, save money, family theft and pet care costs.
We Grade Our Retirement Plans On a Curve
June 19, 2017 | Joe Pye
Americans give themselves a passing grade on saving for retirement, but most are failing.
How Much Is Too Much for Wedding Music?
June 19, 2017 | Emily Bloch
Some pro musicians are doing wedding tours between release tours. But at $7,000 a song, you have better options.
How One Of the 10 Commandments Can Predict Your Debt
June 19, 2017 | Howard Dvorkin, CPA
If you break this Commandment, you’re probably broke.
6 Cellphone Secrets That Can Save You Hundreds of Dollars a Year
June 16, 2017 | Money Talks News
You can pay less for more service. Here’s how.
Millennials Out-Save Older Generations
June 16, 2017 | Joe Pye
They are more conservative with their money at younger ages than previous generations
Neil Gorsuch Sides with Debt Collectors in His First Ruling
June 15, 2017 | Brandon Ballenger
That sucks in the short-term, but it’s good for consumers in the long-term.
Women Struggling Hard with Retirement Savings
June 15, 2017 | Dori Zinn
Women are still primary caregivers, still earn less than their male counterparts, and still don’t believe they are financially ready for retirement.
Steve Snapped Out of His Spending Spree
June 14, 2017 | Brian Bienkowski
He and his wife decided a retired life on the road meant more to them.
Women are Better Than Men at Money Management
June 13, 2017 | Dori Zinn
Women are not only better at saving, but also at investing. However, women don’t know they are better than men at money management.
Middle Class Millennials Struggle With Employment
June 13, 2017 | Joe Pye
Having a credit score under 700 is related to difficulties holding onto jobs and living on your own.
This Week Around The Web
June 13, 2017 | Brian Bienkowski
Saving money, divorce, the war on debt, financial goals and more.
Why Health Savings Accounts Are Booming Right Now
June 12, 2017 | Dori Zinn
As many older Americans gripe with how to afford retirement, they’re taking advantage of health savings accounts now more than ever.
Where Does Trump Stand on Financial Reform?
June 8, 2017 | Brandon Ballenger
He wants the CFPB gutted, but also is “looking at” busting up big banks.
Don’t Take Advantage of Credit Card Cash Advances
June 8, 2017 | Dori Zinn
Consumers are paying much more in cash advances than what they take out. Here’s a breakdown of the costs.
The “Geek Life” Nearly Ruined Marcus’ Finances
June 7, 2017 | Brian Bienkowski
His collection of action figures, games and comics defined him, but he transformed.
Is It Legal For Debt Collectors To Ring My Doorbell?
June 7, 2017 | Howard Dvorkin, CPA
This week: A reader asks about debt collectors, repo men, and “Fonzi” schemes.
Are You Paying the Wrong Debt First?
June 6, 2017 | Dori Zinn
We’re paying off unsecured personal loans faster than auto loans, mortgages, and credit cards and we probably shouldn’t be.
This Week Around The Web
June 6, 2017 | Brian Bienkowski
Wasted stuff, experiencing life, doing nothing, summer adventures and more.
College Grads Moving Back To Mom’s And Dad’s
June 6, 2017 | Joe Pye
College graduates value their degrees even though they can’t afford to live on their own.
We Don’t Care About Retirement as Much as We Say We Do
June 5, 2017 | Dori Zinn
Most of us are worried about emergencies, health care, and vacations more than saving for our retirement.
QUIZ: Do You Know American Spending Habits?
June 5, 2017 | Emily Bloch
It’s like a really sad version of ‘The Price is Right,’ because the only prize is knowing how people budget
Here’s How To Lower Your Homeowners Insurance By Two-Thirds [map]
June 5, 2017 | Howard Dvorkin, CPA
It’s not as simple as it sounds, but also not as hard as it looks: Raise your credit score.
College Seniors Struggle To Pick Careers
June 2, 2017 | Joe Pye
One reason: They focus too much on class and not enough on what else colleges offer.
5 Simple Ways to Save Money on Every Online Purchase
June 2, 2017 | Money Talks News
Yes, you can get a discount on almost everything you buy online.
Financial Flexibility Is Top Goal Among Pre-Retirees
June 1, 2017 | Dori Zinn
Except only a handful are on their way to achieving that goal
Chris From Debt Free Geek Believes in Intensity
May 31, 2017 | Brian Bienkowski
It not only helps him stay debt-free, it also protects him.
How Do We Prepare For The Next Recession?
May 31, 2017 | Howard Dvorkin, CPA
A reader agrees with her husband: A recession is coming. They don’t agree on what to do about it.
Women Aren’t as Financially Well-off as They Think They Are
May 30, 2017 | Dori Zinn
The loss of a spouse or divorce is a major test of financial independence.
Are Geeky Subscription Boxes Worth the Price?
May 29, 2017 | Emily Bloch
Pay up, get quirky mystery goods on a regular basis. We break down the value of some popular services.
What You Can Learn About Money From A Commencement Speech
May 29, 2017 | Howard Dvorkin, CPA
Here are six lessons not only for new grads, but for everyone.
10 Ways to Retire Earlier Than Friends on the Same Salary
May 26, 2017 | Money Talks News
Yes, you can retire earlier than your friends, and live much more comfortably.
This Summer: More Seasonal Work at Higher Pay
May 24, 2017 | Dori Zinn
More companies, large and small, are on the hunt for great workers this summer, while pay for those jobs is also expected to go up.
Can Volunteer Firefighters Get Student Loan Forgiveness?
May 24, 2017 | Howard Dvorkin, CPA
A reader wants to know if you need a real job to get real debt relief.
Just Being Poor Can Make You Sick
May 23, 2017 | Dori Zinn
The more debt you have, the more likely you are to have higher stress levels, more weight gain, and increased sleep loss.
Baby Boomers Really Love Smartphones
May 23, 2017 | Joe Pye
They are more willing to give up financial stability for smartphones, than younger generations.
This Week Around The Web
May 23, 2017 | Brian Bienkowski
Singer Jack Johnson, a five-step plan, a gas hike, good habits and more.
Can “Debt Tech” Robots Keep You From Going Broke?
May 22, 2017 | Howard Dvorkin, CPA
With self-driving cars already taking to the road, is it so far-fetched to think robots can keep you out of debt?
Entrepreneur Moms Never Stop Working
May 22, 2017 | Dori Zinn
Most entrepreneurial moms are still the primary caretakers of their families, but that hasn’t stopped them from leading hugely successful careers.
You Should Manage Your Money Like Ed Sheeran
May 22, 2017 | Emily Bloch
Turns out, the millionaire knows a thing or two about saving.
High Debt Gives Us High Anxiety
May 19, 2017 | Joe Pye
Most Americans don’t have a plan to deal with an average debt of $37,000.
How to Prepare for and Deal With an Income Emergency
May 19, 2017 | Money Talks News
How quickly could you come up with $400? Many of us would need to borrow it.
Millennial Adults Still Living At Home
May 18, 2017 | Dori Zinn
Most moms say their adult children aren’t ready to live on their own and only one-third of young adults are looking to move out of their parent’s house.
Boomers Aren’t Ready for Retirement
May 17, 2017 | Dori Zinn
Most Americans believe they are financially prepared for retirement. As more baby boomers hit retirement age, they don’t know as much as they think they do when it comes to finances in the golden years.
Financial Pain is Nothing to David from Run the Money
May 17, 2017 | Brian Bienkowski
Sure, it hurts, but he’s been through worse.
6 Smart Tips for How to Save Money More Effectively
#1: Make savings automatic
Anytime you can set up a system to work without you, it’s more likely to work. If you have to remember to set aside money each month before you spend it, it’s less likely to occur. So, you want to make savings automatic.
The best idea is to ask your HR department to split the Direct Deposit for your paycheck. Allocate 5-10% of your income to deposit directly into your savings account while the rest goes to checking. This way, you don’t even have to think about setting money aside. Otherwise, set up a recurring monthly transfer from your checking to your savings account.
#2: Establish a short-term emergency fund first
Your first savings goal should be to have a $1,000 balance that you maintain in your main savings account. This should be the minimum balance that you try to keep in the account so you have funds to cover most emergencies. Then you can use the funds if your car breaks down, you have an expensive home repair or an unexpected medical bill.
As you’ll see below, this is not the full financial safety net you need. But it’s a good, solid first milestone that you can aim to achieve.
#3: Next aim for 3-6 months of budgeted expenses
A true emergency fund is big enough to cover all your bills and necessary budgeted expenses for up to 6 months. This means you can be out of work due to unemployment or a medical issue for half a year without facing financial distress. You don’t have to rely on high interest rate credit cards to cover your expenses or take out costly payday loans.
Total up all the necessary expenses in your budget and multiply by three. This gives you the next savings milestone you should aim for after your basic $1,000 emergency fund.
#4: Don’t be afraid of investing
A traditional savings account typically has an interest rate of less than 1%. In fact, 1% is considered a “high rate” when it comes to savings accounts. The problem is that such a low rate means it takes a long time for your money to grow. You’ll be lucky if you ever achieve your goals with such little growth.
In order to save money effectively, you must make those savings grow effectively. This means you need better growth rates than your basic savings account can offer. Without more robust investment tools, it will be hard to achieve stable long-term savings.
#5: Consider cash equivalents
If you don’t like the risk of the stock market and you prefer to start small, look to cash equivalents first. Cash equivalents refer to any investment that you can easily convert to cash. This actually includes basic checking and savings accounts, as well as investments like Money Market Accounts and Certificates of Deposit.
Money Market Accounts function like savings accounts, except they usually have higher minimum balance requirements. The applied interest rate is usually higher, too. In fact, most MMAs work on a tiered rate system. This means the more you save and the higher your account balance, the higher your rate of return, too.
CDs are a type of short-term investment that also offer better rates for saving. You deposit a certain amount of money that matures over a certain term; typically, terms range from one week up to five or ten years. At the end of the term, you withdraw the money or let it roll over for another term. This type of savings can be good to hit specific goals like we will describe below.
#6: Allocate savings for specific goals
Think about savings in terms of specific goals that you want to reach. For instance, you would have your basic savings and emergency fund, long-term retirement savings, and then savings that you allocate for certain purposes. This will help you save strategically and ensure the money doesn’t get spent.
So, let’s say you want to buy a car next year. You have $3,000 in savings that you want to use for the down payment. If you put that money into a 12-month CD, it can grow for a year and it’s not sitting in your savings account where it can get spent. Allocating savings this way helps ensure you can pay for specific goals with less need for financing. You can also pay for things like vacations without high interest rate credit card debt coming home with you.