Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

How to save money

Saving money doesn't have to be hard, especially if you make smart financial decisions.


Fact checked

Our pick for a high-yield savings account: American Express® High Yield Savings

American Express® High Yield Savings logo



  • Monthly fees: $0
  • Interest compounded daily
  • Minimum deposit to open: $0
Go to site

Despite your best efforts and intentions, sometimes bills pile up, emergencies happen and it can feel impossible to save enough to make a difference. Thankfully, with some tweaks to your finances and the help of a few tools, building up your savings doesn’t need to be painful with this guide on how to save money.

How to save in 5 steps

Saving doesn’t mean that you have to give up on the good things in life. While some sacrifices are necessary, a proper balance between spending and saving will result in extra money for you and greater financial security for your family.

1. Open a savings account

Look for high-interest savings accounts with zero fees. Digital banks tend to bemore competitive than traditional banks because they don’t have to deal with the costs of keeping branches open.

2. Make a savings goal

Start off with a few short-term goals, then develop those into long-term goals. Set goals that are easily achievable to start saving responsibly, then move on to goals like saving for a car or a down payment on a home.

3. Pay yourself first

One of the easiest ways to save money is to never see it first. Divert a portion of your paycheck automatically into an account that’s not tempting to access. Some suggestions are:

    • Straight into your mortgage, personal loan or credit card account. If you have debts, send a portion of your bank account each month to pay them down — and not just the minimum payment.
    • A high-interest savings account. Preferably one without a debit card, so it’s a little more difficult to access your money when you’re feeling spendy

4. Spend less than you earn

One of the biggest downfalls is using more money than you have. Live within your means and avoid borrowing whenever possible to stay financially healthy.

5. Be consistent and save regularly

Create a habit of setting aside money in regular intervals. Even small amounts set aside habitually can create a comfortable nest egg for you. Automated tools like Digit, which calculates how much you can afford to save and moves money to your savings when you can afford it, make saving easier.

Are you self-employed or freelancing?

Decide on a portion of earnings that you’d like to manually deposit into a savings account each month and make sure you stick with it.

How to plan for the future

You can’t plan for everything in life, but you can save for a financially stable future. Working on long-term goals as soon as possible will help you have a smoother financial path down the road. A few ways to do that are to:

  • Work on your credit score. A high credit score means that when it’s time to make big purchases — like a car or home — you can take advantage of the lowest interest rates. This can save you tens of thousands over the life of a 30-year loan. If your credit score is low, look into credit repair options.
  • Start planning for retirement. There’s no such thing as starting your retirement planning too early. It takes decades to save up enough for retirement, and if you start too late, you could end up in major financial trouble when you’re older. Diversify your retirement savings so that if one plan fails, you have a backup.
  • Get a good life insurance policy. Make sure you get a policy that isn’t tied to your employer — if you stop working for them down the line, you could be paying into the policy for nothing. Also, know the difference between a term life insurance policy and whole life insurance policy.
  • Adjust your tax withholding. While getting a big refund every year around tax time sounds fun, the truth is that you could be paying the government a lot more than you actually owe. Take a look at your W-4 to see if you’re claiming all of the allowances you’re entitled to. If not, update it and use the extra money each month to add to your savings.

Calculate how much you’d need to save to achieve your plan

Protect yourself

You can plan to retire. You can plan for tax season. You can even plan for death — but you can’t plan for everything. You can, however, take steps to prepare yourself for the unexpected so you don’t get permanently knocked down when you hit an obstacle.

Have an emergency fund

Unexpected medical bills, losing your job, a house fire, a broken car, a last-minute plane ticket to see a sick relative — there are endless potential emergencies that could crop up and eat into your savings. If you don’t have enough to cover those emergencies, you could end up with overdue bills and plummeting credit.

Make sure you have enough to cover any emergency that might come up — enough to live on for nine months is recommended, but if that’s not possible, do what you can.

Avoid taking on any more debt

Small amounts of debt are unavoidable — like a mortgage or that bit of credit card debt that carries you over until payday. Once debt starts piling up, though, it can be hard to dig yourself out. If you can avoid going deeper into debt, like deciding not to take that personal loan to go on a vacation, do so.

Try and master the 30-day rule, which challenges you to wait 30 days before making a purchase. Often, you’ll find that if you wait a month to buy something, that urge will have dissipated by then and you’ll save money.

Currently have a personal loan, credit card or home loan?”

Try and make more than the minimum monthly payments. Since interest is calculated based on your daily amount, the faster you can reduce your principal, the less you have to pay.

Make sure you have health insurance

The cost of health care in the US is astronomical, and a simple ER visit can cost thousands. Without health insurance, a serious illness or injury can costs tens or hundreds of thousands. If you’re having trouble avoiding premiums, look into government assistance in your state.

Keep your finances healthy

One of the most important tips for saving money is to know where your money is going. If you don’t stay on top of your finances, small purchases can eat away at your checking account, leaving you with nothing left to save and no idea where the money went. Here’s how to keep your finances healthy:

  • Learn how to budget effectively. Setting a budget and sticking to it is one of the best things you can do for your finances. Not only does it help you figure out how much you can set aside in your savings account each month, but it’ll help make sure you don’t end up with overdue bills that hurt your credit and turn into debt.
  • Regularly check your bank accounts. Checking your bank balance regularly is a good habit to get into. Knowing how much money is in your account is useful when formulating a budget, and knowing how much should be in your account will make it easier to spot any suspicious charges or bills you might be overpaying.
  • Get financial advice. Getting the right kind of financial advice can really make a difference and give you the confidence you need to meet your financial goals, whether it’s a financial planner or a robo-advisor.

Financial planners can help you:

  • Set and achieve your financial goals.
  • Make the most of your money.
  • Get any government assistance you’re entitled to.
  • Feel more in control of your finances and your life.
  • Avoid expensive mistakes.
  • Protect your assets.

Compare savings accounts

Name Product Interest rates (APY) Fee Minimum deposit to open Interest earned
American Express® High Yield Savings
Enjoy no monthly fees and a competitive APY with this online-only savings account. Accounts offered by American Express National Bank, Member FDIC.
Axos Bank High Yield Savings
No monthly maintenance fees. No minimum balance requirements. Interest compounded daily.
Aspiration Spend & Save Account

1.00% on $0 to $10,000 but you’ll need to be enrolled in Aspiration Plus and make at least $1,000 in debit card purchases a month
$0 per month or $7 per month for Aspiration Plus ($5.75 per month if you pay annually)
Deposits are fossil fuel-free and insured by the FDIC. Enjoy a spend and save combo account with unlimited cash back rewards and a $100 bonus when you spend $1,000 in your first 60 days.
CIT Bank Money Market
A savings account with a higher-than-average rate and minimal fees.
Continental Bank High Yield Savings
Continental Bank High Yield Savings account, offered through SaveBetter, has a $1 opening deposit and earns 0.45% APY.

Compare up to 4 providers

Watch out when paying with credit

Many financial companies and banks give you the option to borrow from them. Credit cards are there to pay for goods or services and you can take out loans for bigger purchases like cars, homes and even a start-up fund for your business.

The downside of credit and loans are the charges that come along with them. Your monthly payment comes with interest, which can add up over time — especially if you miss a payment and end up needing to pay late fees.

If you struggle to keep your credit card spending under control, consider using the card for emergencies only and carry cash on you for day-to-day purchases until you get used to sticking to a budget.

Invest your money

While there’s a degree of risk involved, making smart investments can help you grow your money significantly. A few of your many options are:

  • Investing in things that increase in value over the years. Jewelry and art often increase in value over time, making them a great way to diversify your investments. Toys and memorabilia have the potential to increase drastically in value, but they’re a much riskier investment — in 20 years, they could be incredibly valuable or they could be worth nothing.
  • Investing in real estate. If you buy a second home or an apartment complex that you can rent out, that will be a stream of income when you retire. Whereas your savings account will slowly start to deplete after you stop working and adding to it, a rental property will continue to bring in money each month even as it accrues value.
  • Investing in a business. Starting a business allows you to be your own boss, giving you the freedom to implement ideas that will generate profit. Once a business has become established, it very nearly runs on its own, giving you the time and the wealth to enjoy the rest of your life. If you like the business world but want a more hands-off approach, you can also be an investor in someone else’s business.
  • Investing in yourself. You can help increase your market value by taking time to learn more. You can go back to school or attend classes that can help you be more knowledgeable in your chosen field and increase your potential future earnings.
  • Automating your investments. Set your investments up so that a percentage of your paycheck is deducted and redirected to a diverse investment portfolio each month. This is the best way to make sure that your investments grow over time and you’re financially stable when you’re ready to retire.

Bottom line

Saving can be difficult, especially when you think about how much it costs to make a big purchase or even retire. However, taking small steps to stash money away in a savings account every month can start to add up to major savings after a few years. If you make smart financial decisions and turn budgeting and saving into a habit, future you will be grateful.

More guides on Finder

Ask an Expert

You are about to post a question on

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site