5 ways to put more money into your savings account in 2024
It's no secret that having a savings account is important. After all, unpredictable expenses pop up from time to time, and if you don't have the savings to cover them, you could face financial hardship.
Most experts suggest that you should keep at least three to six months' worth of expenses in your savings. That amount of emergency savings should be enough to get you through most financial burdens that could come your way, from surprise mechanic expenses to the loss of your income. No matter what happens, you'll have time to recover.
But what if your savings isn't everything you want it to be? What can you do to put more money in your savings account in 2024?
Make your idle cash work harder for you with a high-yield savings account.
5 ways to put more money into your savings account in 2024
"The best money-saving strategy is always to spend less," says Angelo Babbaro, founder and president of The Babbaro Group. But with prices headed up, how do you spend less money?
Babbaro has a few ideas, including:
Diversify your credit card usage
Babbaro says you should diversify to manage risk and elevate returns. Why not do the same in your spending habits?
You should "diversify the cards you're swiping," he said. "Use multiple credit cards to maximize returns. Some cards offer 4% back on gas, while others can maximize rebates on dining out or airline miles."
Of course, if you're going to use credit cards to make your purchases, you should only buy what you can afford to pay for in full when the statement is due. After all, credit card rewards typically aren't worth the interest on credit card debt that you carry from month to month.
Get more out of your money with a high-yield savings account now.
Cut entertainment costs
"Understand your TV streaming subscriptions, pick one and cancel the ones you will not need in 2024," Babbaro says. "Now there are even programs to help you track and cancel out of these contracts you're in."
Beyond streaming television, many financial institutions offer tools that make it possible to cancel unused subscriptions. If your financial institution doesn't offer such tools, consider using an app to get rid of subscriptions you're not using anymore.
Take part in the DIY trend
"DIY your projects," says Babbaro. "You watch it on television all day long; why not tackle a few yourself? Trade labor is at an all-time high and the labor can possibly mark up 90% on small jobs that can take less than an hour to do yourself."
So, instead of calling the handyman next time you need something simple fixed, try to fix it on your own and deposit the funds you would pay to your handyman into your high-yield savings account.
Buy in bulk
"Buy in bulk," says Babbaro. "Household staples can be purchased in large quantities when on sale. You're going to use them anyway, so buy at a discount whenever possible. Buying while in demand could cost you."
Bundle insurance for the best rates
"Bundle your home insurance with auto, if not already, but shop these at least every three years to make sure you are receiving the best rates," Babbaro says.
That's a good idea for a few reasons. First, insurance companies are free to charge what they deem fit for their services. Some will be significantly more or less expensive than others. Moreover, insurance premiums change regularly. If you want the best deal, you'll need to shop around from time to time. And, bundling insurance is known to open the door to discounts as well.
Make sure you store your savings in a high-yield account
Before you start building your savings, it's important to have a good place to put your idle cash. After all, you want the money in your savings to work as hard for you as possible. High-yield savings accounts are compelling places to store your emergency fund. Here's why:
- Strong returns: High-yield savings accounts are known for offering impressive returns — that's especially true in today's high-rate environment. Some of the best high-yield savings accounts are offering APYs over 5%.
- Safety: As deposit accounts, high-yield savings accounts typically come with FDIC or NCUA insurance. So, the financial institution you deposit your money with could go out of business and you still wouldn't lose a dime.
- Accessibility: It's important to have access to your emergency savings when you need it. After all, emergency expenses aren't going to wait until you have the money to cover them. The good news is that you can typically withdraw money from your high-yield savings account up to six times per month. You may even be able to access your money more often, but you'll likely have to pay a penalty if you do.
Open a high-yield savings account for your emergency fund now.
The bottom line
It may seem difficult to build a meaningful savings account, but with a few small changes, you could be saving more money than you thought you had available. Follow the tips above to build your savings in 2024 and open a high-yield savings account to make your idle cash work harder for you.
