5 Top Ways to Save in 2024

#1- Make a Budget (And stick to it)

I know this seems like a no-brainer, but a surprisingly large amount of people DO NOT have a budget. The first step to saving money is simply looking at your money. Write down all of your spending such as how much you spend on groceries, shopping, and eating out. And when I say write down everything, I mean EVERYTHING. Yes, even that weekly cup of coffee and Danish.

Once you see what you make and spend, you can begin to make tweaks. This is the stage where you say “OMG I spend over $100 a week on take-out!” We have all been there, and it is ok to have weeks like that. But adjusting categories like this is where the savings come in. I have a more comprehensive guide to starting your first budget here. But to get started:

• Track your expenses: Use apps like Mint or simply write it down on paper to monitor your spending.
• Categorize your spending: Break down your expenses into categories like utilities, food, entertainment, and savings.
• Set realistic limits: Allocate a specific amount to each category and aim to stay within those limits.

#3- Make a Meal Plan

Eating out can quickly drain your budget, but meal prepping and planning can help you save money and time. Now, I must say that I love meal planning and cooking, but I still eat out once (or more) a week. I’m not overspending though, because I followed the first tip and budgeted for my dining-out expenses! But, by planning your meals in advance, you can buy groceries in bulk, reduce food waste, and avoid last-minute takeout orders. Here’s a simple approach:

• Plan your weekly meals: Create a menu for the week and stick to it. This can be as strict or loose as needed. I typically start with five dinners and two or three breakfast and lunch options. Don’t forget to plan snacks!
• Buy in bulk: Purchase staple items in larger quantities to save money. This includes things like rice, flour, sugar, and canned goods. I would limit this to shelf-stable items that won’t go bad such as produce and dairy.
• Cook in batches: Prepare meals for several days at once to save time and reduce the temptation to eat out. There are so many freezer-friendly meals you can make from scratch and store them for up to a month. Some of my favorites are listed here.

#4- Open a High-Yield Savings Account (HYSA)

Traditional savings accounts often offer minimal interest rates, which means your money isn’t growing as much as it could be. In 2024, consider opening a high-yield savings account (HYSA). These accounts offer better interest rates, allowing your savings to grow faster. These rates range from 3% up to 5% or higher. I use CIT Bank’s Savings Connect account which offers a 4.50% APY (annual percentage yield) which is compounded monthly! When choosing a high-yield savings account:

• Compare rates: Look for the highest interest rates available. Most of these will be compounded monthly, so you will see a monthly return on your savings!
• Check for fees: Ensure the account doesn’t charge monthly maintenance fees.
• Use this for an emergency-fund: One important goal is to have an emergency fund (3-6 months of living expenses saved in case of an emergency.) A HYSA is the perfect place to stash this fund. First, ensure the bank you choose is FDIC insured so your money is safe. Then stash your emergency fund in it and watch it grow!

#5- Don’t Be Too Restrictive: Enjoy the Little Things

While saving money is important, it’s equally crucial not to be too restrictive. Allowing yourself to enjoy small pleasures can prevent burnout and make your budgeting efforts more sustainable. Much of the financial advice on the internet will tell you to give up that cup of coffee from the cafe, or no take-out at all. But if you budget correctly and don’t want to hate your life, don’t give up the small treats that make you happy. No, this doesn’t mean you go buy the newest trendy Stanley Cup every time one comes out, but it does mean that you should make room in your finances to splurge on the things that truly matter and will improve your attitude toward money. Here’s how to strike the right balance:

• Set aside “fun money”: Allocate a portion of your budget for small indulgences like coffee or a night out. Or, if you aren’t someone who needs those things, save a small amount every week and save it to buy one larger or more luxurious item you have your eye on.
• Prioritize experiences: Invest in experiences that bring joy, rather than just material items. Make sure if you are spending extra money on something to “treat yourself” that it is something you like.