44 tips to grow your wealth

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44 tips to grow your wealth

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Saving money takes time and discipline — and it can be a challenge if you face competing financial obligations or unexpected costs. Your ability to save can also be impacted by external factors, including the rising cost of living and high interest rates on debt.

Americans saw a boost in their savings following the COVID-19 pandemic due to stimulus checks and stay-at-home orders. However, many people have since hit the brakes on their savings contributions; the personal saving rate fell to 3.5% in March 2024. By contrast, that figure was 26.1% just three years earlier.

As Americans continue bearing the brunt of a higher-than-normal inflation rate and higher costs, saving money could prove to be more challenging than it was just a few years ago. However, there are ways to reevaluate your current spending habits and cut costs to designate more toward your savings account.

Read more: What is the average savings by age?

The most recent Consumer Expenditure Survey from the Bureau of Labor Statistics found that spending on groceries was up by 8.4% in 2022. Americans spend an average of $5,703 each year on food at home — nearly $500 monthly.

Of course, you have to eat, so can’t completely eliminate this big monthly expense. That said, there are certainly ways to save money on groceries.

  • Make a list before you shop: It can be easy to get lost in the colorful aisles of a grocery store and throw unnecessary snacks into your cart. Before you go shopping, take stock of what’s already in your refrigerator or pantry and make a list of your must-buy items. That way, you don’t buy duplicates or spend on groceries you don’t really need.

  • Shop generic: Name-brand products tend to come with higher prices. An easy way to cut grocery costs is to shop the supermarket’s brand of items. Chances are, the ingredients are pretty similar. And generic foods typically cost 25% to 30% less than their name-brand counterparts — which can really add up with each shopping trip.

  • Buy in bulk: This may not make sense if you’re grocery shopping for one. But if you have a larger family, buying items in bulk can help you save big. However, be sure to calculate the price-per-unit (that’s the total number of units divided by the cost of the item) and ensure it’s less than the cost-per-unit when purchasing a smaller quantity. You’ll also want to consider the item’s shelf life and ensure your family can eat through your supply before it goes bad.

  • Consider a rewards credit card: There are several rewards credit cards that offer cash back and bonuses for purchases made at supermarkets, as well as retailers, restaurants, gas stations, and more. Using a rewards card for grocery purchases that you need to make anyway can help you shave down the cost further. Just be sure you charge only what you can afford to repay at the end of the billing cycle. Otherwise, interest charges will wipe away those rewards — and then some.

Read more: Best credit cards for groceries

The average monthly rent is $1,534 per month for a one-bedroom apartment, according to Apartments.com. However, there are several states where residents contend with even higher rates, especially those living in bustling metropolitan cities.

For example, the average monthly rent is $2,569 in New York, $2,481 in Massachusetts, and $2,117 in California.

High rental costs can not only strain your budget but also make it more difficult to save and invest for the future. Here are a few ways you could lower your monthly rent:

  • Sign a longer lease: When a landlord has to spend time searching for a new tenant, they miss out on rental income. And with each new tenant, there’s a risk that they won’t stick to their payments. Standard leases tend to be about 12 months long, but signing a longer lease could entice them to lower your monthly rent in exchange for the guaranteed rental income for a longer period of time.

  • Negotiate with your landlord: Having an honest conversation with your landlord can go a long way in negotiating your rent, especially if you have a proven track record of on-time payments and a stable income. It doesn’t hurt to ask.

  • Get a roommate: If your monthly rent payment is too much for your budget to handle, getting a roommate can significantly reduce the financial burden. Just be sure to consult your landlord before taking on a roommate to ensure that it doesn’t violate the terms of your rental agreement.

  • Consider a new location: Real estate is all about location, location, location. If your monthly rent is too high, moving to a more affordable neighborhood could help you trim your monthly rent. Take some time to explore other communities and see if the price difference could justify a new address. Moving could help you save further if you relocate to an area with low sales taxes or a state with no income taxes.

According to the National Association of Realtors (NAR), the median mortgage payment for Q2 of 2023 was $2,051 for a mortgage on a single-family home. For many Americans, their monthly mortgage payment comprises a significant portion of their monthly expenses. Here’s how to save money on a mortgage:

  • Buy down your mortgage rate: When taking out a mortgage, consider “buying down” your mortgage rate by paying more money up-front at closing. You’ll need to crunch the numbers to ensure this saves you money in the long run. For example, if you plan to sell your home in a few years, you may not come out ahead. But reducing the interest rate on your forever home by even 1% could save you thousands of dollars over time.

  • Make an extra payment each year: Splitting your monthly mortgage payment in half and making a bi-weekly payment, rather than one monthly payment, will result in one extra payment each year. By doing this, you’ll build equity and reduce your principal balance more quickly, lowering the total amount of interest you pay on your loan over time.

  • Refinance your mortgage: Refinancing involves replacing your existing home loan with a new mortgage for the same property but with new terms. If you can secure a lower interest rate, you’ll enjoy a lower monthly payment and long-term interest savings. Again, it’s important to do the math and ensure any closing costs or a longer repayment period don’t cancel out those savings.

Utility costs can creep up unexpectedly if you’re not monitoring your usage, especially when temperatures reach extremes during the summer and winter months. However, you can keep your energy costs low with a few smart moves:

  • Lower your usage: Taking shorter showers, using warm or cold water, and unplugging electronics when you’re not using them are just a few ways to reduce your energy consumption and, in turn, lower your monthly utility bill.

  • Repair leaks: Leaky pipes result in using more water, while cracks in your windows or door frame can require more energy to keep your home the right temperature. Taking the time to seal off any leaks and better insulate your home will help reduce your bills.

  • Invest in energy-efficient appliances: Making this swap not only reduces your carbon footprint, but also has a direct impact on your energy bills. These appliances may involve a higher upfront cost, but typically require less energy and resources to run, which is good news for your wallet long-term. Plus, you may qualify for rebates and tax incentives when purchasing Energy Star products.

Car payments, insurance, fuel costs, and repairs can add up. The American Automobile Association estimates that for new vehicles driven 15,000 miles a year, the average cost of ownership is $12,182 a year, or $1,015 a month as of 2023. That’s a sharp increase from the previous year, when the average annual cost was $10,728, or $894 per month.

Making a few changes to your daily habits can help you reduce your transportation costs and put more money toward your savings account each month.

  • Opt for an alternative mode of transportation: Walking, biking, skateboarding, and rollerblading are all more affordable ways to get around. For short trips around town, leave your car at home and try a fuel-free alternative. You’ll not only save money but maybe even enjoy some health benefits.

  • Take public transportation: If you live in an area with reliable public transportation options, take advantage of your local bus or subway. Your employer may even offer a stipend or discount to subsidize your commuter costs.

  • Carpool: Consider creating a carpool group with friends or coworkers and split the cost of fuel if you’re all headed in the same direction.

  • Look for fuel savings through apps: If you absolutely have to drive to your destination, there are several apps such as GasBuddy and Waze that can point you in the direction of the most affordable fuel near you.

Insurance provides a financial safety net in the event of a car accident, natural disaster, medical emergency, and more. Depending on the number of assets you’re paying to insure and their value, monthly premiums can add up. A few easy ways to save include:

  • Bundle insurance policies: Many insurance providers offer savings for customers who bundle insurance policies. For example, say you need auto and home insurance — purchasing policies from the same company could get you a discount.

  • Ask your insurance provider if you qualify for any discounts: Insurance providers often reward customers who pose the least amount of risk. For example, maintaining a clean driving record with no accidents could help you qualify for a good driver discount from your auto insurance provider. Ask your insurance company about the specific discounts they offer to see if you can trim your bill that way.

  • Shop around and consider different insurance providers: Insurance companies typically offer free quotes online. So do some research and request quotes from several providers to compare rates and choose the best coverage and rate. This is something you can do every couple of years to evaluate your current policies, not just when shopping for a new one.

The average cost of college in the United States is $38,270 per student per year, including books, supplies, and daily living expenses, according to the most recent figures from the Education Data Initiative (EDI). And the data shows that the cost of tuition has only increased in recent decades, with college costs more than doubling in the 21st century. Fortunately, there are ways to keep these costs down:

  • Apply for scholarships: There are thousands of scholarships available each year, and they’re not all based on financial need or academic performance. There’s probably a scholarship (or several) based on your unique situation and background. So spend time researching and applying for scholarships offered by the college you’re attending, local organizations, national foundations, and private entities to save money on college.

  • Consider a public university or community college rather than a private institution: Private college tuition is 64.7% higher than public college tuition, according to the EDI. Opting for a public university or community college can shave thousands of dollars off your total bill.

  • Commute if you attend a university that’s close enough to home: Commuting to a university involves its own set of costs, but it doesn’t compare to the cost of on-campus housing at a four-year college or university. If you live close enough to your university, consider living at home or renting a cheaper apartment off-campus and commuting to school.

  • Take advantage of student discounts: One of the major perks of being a college student is the long list of discounts you may qualify for from major retailers, restaurants, streaming platforms, tech providers, and more.

Traveling can be a fulfilling way to spend your time and make new memories. However, depending on your desired destination, funding your travels can kill your budget. This doesn’t mean you have to put your goal of traveling on the back burner. There are plenty of ways to make your travel plans more affordable:

  • Use a travel credit card: Travel credit cards can offer discounts on hotel stays, airfare, luggage fees, travel insurance, rental cars, and more. Some may even grant you access to airport lounges that offer their own set of freebies while you wait to board your flight. Choose a card that rewards you for your regular spending and helps you earn cash back, points, or miles that can later be put toward your travel costs. Keep in mind, however, that the more perks a card comes with, the higher the annual fee may be. And carrying a balance results in interest charges that cancel out those savings and rewards. So choose your card and spend wisely.

  • Travel in the off-season: Airfare and hotel rates can skyrocket during peak travel times, such as during the summer months and surrounding major holidays. An easy way to save money on travel is to have flexible travel dates and be open to traveling during the off-season.

  • Book travel plans in advance: Last-minute travel deals exist, but if you’re hoping to plan a trip that fits neatly into your budget, it may not be wise to wait until the last minute to book your flight or hotel. As soon as you’ve decided to take a trip, you can sign up for alerts from your preferred hotels and airlines to be notified when there’s a sale or when fares are lower than usual. Giving yourself a decent lead time can help you secure the best rate and factor your travel costs into your monthly budget.

It’s estimated that raising a child through age 17 costs more than $200,000. From basic necessities such as healthcare, food, and education to miscellaneous expenses such as dance classes and birthday parties, there are many reasons why having kids is expensive.

If you’re thinking about starting a family or already have kids, here are some ways to cut costs:

  • Buy secondhand: Children outgrow their clothing quickly and are more likely to have spills and dirty their clothes. Instead of buying brand-new clothing, check out your local thrift store or consignment shop. Chances are these items will be more reasonably priced than something off the rack.

  • Take advantage of free activities in your area: Following community pages on social media and signing up for emails from your local libraries and museums can help you keep tabs on what’s happening in your area and find free events and activities for your kids.

  • Stay on top of preventative care: Scheduling regular check-ups and vaccinations will prevent more serious and costly health issues down the road. If your child needs medication, ask for generic versions, which are often cheaper than brand names. And if your employer offers a Flexible Spending Account (FSA) you can use pre-tax income to pay for qualifying medical expenses.

Buying yourself a new pair of shoes or splurging on a pampering session can be a nice way to treat yourself — and it doesn’t have to impact your ability to save. You can still treat yourself on a budget with these tips:

  • Join store loyalty programs: If you’re a frequent shopper at a particular store, ask if they have any loyalty programs. You may earn freebies or discounts just by sticking with certain retailers or brands.

  • Sign up for emails: Many retailers have email lists they use to make customers aware of upcoming, and often exclusive, promotions. You may also be able to sign up for text alerts to find out about sales and receive coupons.

  • Install browser extensions: Browser extensions such as Honey and Rakuten do the heavy lifting for you. These tools automatically find and apply coupons at checkout when you shop online. They also offer cash back at certain retailers, further reducing the total cost.

Tax time can be stressful, especially if you think you will owe a bill in April. The good news is there are several ways to cut down your tax liability:

  • Max out retirement contributions: Increasing contributions to your 401(k), IRA, or other retirement plan lowers your taxable income. In 2024, the contribution limit for a 401(k) is $23,000; if you’re 50 or older, you can set aside an additional $7,500 per year. Your employer may also offer matching contributions, which is free money that doesn’t count toward your annual maximum. So even if you don’t max out your contributions, be sure to save enough to receive your full match.

  • Put money in a health savings account (HSA): Contributions to a health savings account are also tax-deductible and help lower your overall taxable income. Plus, the money can be used to pay for qualified medical expenses. And unlike an FSA, any money you have left over at the end of the year rolls over to the next.

  • Look for deductions and credits: Unless you’re a tax expert, you probably aren’t aware of all the tax write-offs available to you. According to Turbo Tax, some of the most commonly overlooked deductions and credits include state sales taxes, student loan interest, moving expenses, and the Child Tax credit. Fortunately, there are tax software programs that can help you identify possible write-offs. When it doubt, though, it can be worth paying a tax professional to complete your return so you don’t miss anything.

Read more: How to save $10,000 in a year

Growing your savings account balance takes time and careful planning, but with the right strategy, you can build up enough savings to cover all of your financial goals and long-term expenses.

As you put in the hard work to build your savings, here are some ways you can maximize those efforts:

If you don’t have a budget in place (or haven’t evaluated it in a while), you may be spending more than necessary. Streaming accounts you forgot you subscribed to, a few too many DoorDash orders, or a gym membership you no longer use are all extra expenses you could easily eliminate.

Review your budget and bank statements carefully to see if there are spending categories you could trim down to allocate more money toward your savings goals.

Read more: Need a new budgeting tool? Try one of these 5 Mint alternatives

Automating transfers from your checking account to your savings account ensures you’re making regular contributions your balance continues to grow over time. Plus, by setting-and-forgetting your savings contributions, you may not even notice the money has left your account in the first place.

Where you keep your savings is just as important as the amount you’re contributing. The national average interest rate for a savings account is only 0.36%, according to the FDIC. However, there are other options that can help your savings grow faster.

For example, consider putting your money in a high-yield savings account or certificate of deposit (CD), which may pay as much as 5% APY or more. You could be missing out on extra savings by not exploring high-yield account options.

Read more: 17 savings accounts that pay 5% APY or higher

Unexpected financial emergencies can throw your savings off track and result in debt. By creating an emergency fund, you won’t have to worry about a car repair or trip to the emergency room throwing your financial plan off course.

Read more: How much money should I have in an emergency savings account?

Paying off high-interest debt (such as credit cards) can free up room in your monthly budget to put more toward savings. In fact, eliminating debt that accumulates interest is essentially saving money, especially when your debt interest rates are much higher than your savings interest rates.

Using a debt repayment strategy such as the snowball or avalanche method can help you get the ball rolling and save money on interest over time.

Treating saving money like a game can help you stay motivated. Try a savings challenge such as the 52-week challenge or no-spend challenge to give your balance a boost.

Keeping track of transactions, categorizing expenses, and monitoring progress toward your goals can be a lot of work. Fortunately, there are plenty of money-saving apps that can do a lot of the heavy lifting for you. Signing up for one of these apps can help you be more strategic about saving and staying on track.

Read more: How to use AI to improve your finances

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