Americans on average aimed to save $7,435.57 in 2023 and managed to save $6,138.06. If you weren’t able to boost your savings last year, some strategy changes might help you save more this year. Saving money isn’t an easy thing to do in general. And it’s certainly not easy at a time when living costs are still higher than usual.
Such was the case in 2023. Though inflation cooled nicely compared to 2022, many consumers still found themselves racking up larger credit card bills when covering their everyday expenses. Still, Americans managed to save nicely in 2023, according to New York Life’s latest Wealth Watch survey. The typical U.S. adult socked away $6,138.06. And while it’s worth noting that Americans were targeting an average savings total of $7,435.57 for 2023, $6,138.06 is still pretty darn impressive.
Last year’s average savings amount also surpassed the $5,011 Americans saved on average in 2022. But given that inflation was much more rampant in 2022 than in 2023, that’s not particularly surprising.
Tips to Boost Your Savings in 2024
- Automate Monthly Savings ContributionsA big reason so many people struggle to save is that they spend their money during the month and figure they’ll sock away whatever’s left at the end of the month. That’s why automating contributions to your savings account is both important and effective. If you transfer money over at the start of the month and work backward from there, you’ll be saving something off the bat. And if you’re tempted to spend on extra things during the month, well, that won’t be an option, since your money will have already left your checking account. To be clear, you don’t have to commit to a large monthly transfer. You can start with $25 if that’s all you feel you can swing and see how it goes. But it’s important to start somewhere.
- Join the Gig EconomyCutting back on spending could lead to more savings, but it’s a hard thing to do. If you’d rather not give up too many things you love, get a second job. The gig economy makes it fairly easy to boost your income because so many side jobs are flexible. You could drive a couple of hours a week for a ride-hailing service, do some grocery delivery runs, or become a freelance web designer or writer if you have the skills and take on projects with flexible deadlines. The extra money you earn could help you grow your savings nicely.
- Practice Mindful SpendingYou probably spend money on non-essential things all the time. And that’s OK — everyone does. But if you’re eager to boost your savings, try to put more thought into the things you’re buying. One good rule when it comes to physical purchases (as opposed to paying for things like a meal at a restaurant) is to wait 24 hours from the time you’re tempted to make a purchase to when you actually make it. If, during that window, nothing changes, and you end up wanting the item in question just as much, buy it. If not, skip it and bank the money you would’ve otherwise spent.
Americans saved pretty nicely in 2023. But if it wasn’t your year to boost your savings, regroup and aim for solid results in 2024. By automating contributions, joining the gig economy, and practicing mindful spending, you can set yourself up for financial success in the new year.
Explore the recommended savings accounts to make the most of your money in 2024. SoFi Checking and Savings and CIT Platinum Savings offer competitive rates and easy account opening processes.