9 Ways to Start Saving More 

This week’s paycheck has come and gone, and your refrigerator has died. Do you have the money to replace it?  

If the answer is no, you’re not alone. According to a recent Unlock survey of more than 2,000 U.S. homeowners, 51% are unprepared for an unexpected $500 expense. Emergency savings seem to be even more difficult for younger generations, with 74% of Gen Z respondents saying that a $500 bill would be problematic and 64% of Millennials agreeing with that statement.   

Building up your savings can be a real challenge, especially when everything from food to insurance is getting more expensive. Throw in a slowing job market or unexpected expenses, and it’s even more difficult to set aside money for the future.  

Difficult – but not impossible. Read on for our tips on getting started with saving and what you can do to keep the momentum going. 

What’s your current savings rate?

Before we begin, a question: How much are you saving each month right now? If you don’t know the answer, that’s OK – that just means it’s time to start paying attention. 

One way to learn your current savings rate is to look at your recent financial statements to see how much money you’ve saved compared to how much you’ve brought in. Your banking statement may show you your cash flow – the amount of money coming in and going out of your account in each month. Don’t forget to include your 401(k) contributions, savings account transfers, even the spare change you drop in the piggy bank.  

Here’s how to calculate it:  

• Savings rate = monthly savings / monthly gross income x 100 

If you earn $5,000 each month and save $750, you’re saving 15% of your income (750 / 5,000 = 0.15).  

Building a cash cushion

The average savings rate in the U.S. is 4.6% as of January 2025, according to the U.S. Bureau of Economic Analysis. However, many personal finance experts recommend saving 20% of your monthly take-home pay and building an emergency or rainy-day fund of three to six months of expenses.  

If you’re struggling to get there, here are some tips that could help you. And remember, even small amounts add up. 

1. Track everything
   Budgeting your paychecks and tracking your expenses can help you see where exactly your money is going. And if you know you’re going to have to log it in your spreadsheet or budgeting app, you might think twice about your next impulse buy. Look for inexpensive or free budgeting tools online to help you track and plan your spending. 
2. Change your mindset
   A big part of saving money is adjusting your mindset. Often, “saving” can feel a little too much like “sacrificing.” But if you focus instead on the pride and freedom a healthy savings account can bring, you may be more willing to defer some of your spending in favor of watching your balance grow.
3. Follow the 50/30/20 rule
   While you’re tracking expenses and planning your budget, you can use this popular but simple rule of thumb: 50% of your income to essential, non-negotiable bills like housing, transportation and utilities; 30% to wants like dining out and travel; and the other 20% to savings and debt repayment. This budget method ensures that you have enough money to enjoy life while also paying down debt and building up savings. 
4. Automate your savings 
   If you struggle with having enough money to drop in your savings account at the end of the month, switch it up: set up an automatic transfer from your checking to your savings account. You’ll be saving with almost no effort. If you’re worried about not having enough left over, start small. You can always increase the amount next month.
5. Out of sight, out of mind 
   You may be able to arrange a direct deposit of a portion of your paycheck to your savings account, bypassing your checking account altogether. If you never see it hit your bank account, you might not notice it’s gone. Meanwhile, your savings will be accumulating in the background. 
6. Consider a high-yield savings account 
   While your regular bank might offer a savings account, chances are you won’t earn very much interest. The national average is just 0.41%, or 41 cents for every $100 in your account. You could earn more than ten times that amount by opening a high-yield savings account (HYSA). Some HYSAs offer up to 4.6% interest on your deposits – so you could be earning $4.60 on every $100 instead. That’s almost free money, and all you have to do is let it grow. 
7. Go cash-only
   If you struggle with credit and debit card spending, consider going cash-only for a couple of months. A popular way to manage a cash-only budget is to divide your paycheck into various envelopes, each containing the cash for a particular spending category like groceries, gas, or personal care. Once you’ve spent everything in that envelope, you’ll need to wait until your next paycheck to replenish it. This method could help you rein in unnecessary spending. If it works well for you, you can keep it going until you reach your goal. 
8. Try a savings challenge 
   If you need a little incentive to keep going, try a savings challenge. This turns saving money into a game you can win, with built-in goals along the way. Try increasing your savings every week with a 52-week challenge or rolling the die on how much to save each day (roll a 1, that’s $1. Roll a 5, save $5). Trying new challenges can motivate you to keep going and make it fun, too. 
9. Start an IRA 
   If you’re less worried about day-to-day expenses and more concerned with your retirement prospects, a Roth IRA might be a good solution. Roth IRAs are funded with after-tax money, so you can contribute up to the annual limit each year and your earnings grow tax-free. You can withdraw your contributions if you need them, because they’ve already been taxed (with a few conditions). Talk to a financial professional to find out if a Roth IRA is suitable for your situation. If so, they’re simple to open at a brokerage or financial institution. 

Reward yourself for success

Saving money is hard. Remember to acknowledge your effort and be proud of what you’ve achieved, even if it takes longer than you’d like. Find ways to reward yourself when you reach a new goal, even if it’s just to celebrate the victory.