Savings
None of this is expert advice. It's what people worked out for themselves, usually the hard way — what actually helped, and what they'd tell someone standing where you are. Take what fits and leave the rest.
If you only read a few
Continue paying the monthly amount of your former car loan into a 'car fund' after paying off the vehicle.
It provides relief by creating a backup fund for future repairs.
- Based on one person's experience
3 people, independently
Set up an automatic transfer of a set sum or percentage from each paycheck into savings right away.
This is simpler than relying on mental tricks, and saving only surplus funds often means you aren't actually saving.
3 people, independently
Calculate whether the effort required to meet high-yield checking requirements is worth the small interest earned per transaction.
At max rates, the earnings per transaction are less than $1 per month, which may not be worth the hassle.
- Using it for normal purchases might yield less than a standard bank account.
one person who lived it
Live as if you earn minimum wage and treat your actual income as bonus money for luxuries like travel.
- Some find this approach confusing.
one person who lived it
Move money from low-interest traditional banks to high-yield alternatives.
One person reported making more interest in two months at a new bank than in their lifetime at a credit union paying 0.10%.
one person who lived it
Save aggressively into a high-yield savings account to build an emergency fund equivalent to one year of expenses as a safety net against job loss.
It acts as a net if the working partner loses their job.
one person who lived it
Save an amount equivalent to a car payment into a savings account each month so you can buy a used car with cash later.
It allows you to avoid having car payments.
one person who lived it
Limit daily coffee spending to a small amount, such as $1, and auto-transfer the savings into a separate account.
One person accumulated nearly $3400 in two years without missing the expense.
one person who lived it
Stash cash in hard-to-reach places or separate accounts to reduce the temptation to spend it.
It helps maintain 'not allowed to touch' funds.
one person who lived it
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Automatically transfer 10% of your income to savings immediately upon receipt, before spending anything else.
Paying yourself first changes how you view money, eventually making the savings disappear from conscious notice.
2 people, independently
Build an emergency fund.
It is important to have an emergency fund.
one person who lived it
Focus on building an emergency fund over discretionary spending like travel.
You will feel more secure knowing the fund is there.
2 people, independently
Save a portion of daily gig earnings specifically for operating expenses to prepare for vehicle breakdowns or replacements.
Operating expenses can consume roughly half of gross daily earnings; failing to save these funds leaves you vulnerable when major repairs occur.
one person who lived it
Use online-only banks to access higher interest rates.
They lack the overhead of brick-and-mortar locations.
one person who lived it
Maintain an emergency fund so you do not need to borrow money or use credit cards when unexpected costs arise.
People often accumulate credit card debt because they failed to set aside savings for emergencies.
3 people, independently
Set up automatic monthly transfers to a High-Yield Savings Account for any extra income or pay differences, then check the balance at tax time to see your accrued savings and interest.
You accrue interest on the money throughout the year.
one person who lived it
Start building savings by putting away any amount, no matter how little, and stay disciplined.
Getting started is the first priority.
one person who lived it
Use cash for small purchases and save any change received.
The saved amounts accumulate quickly.
one person who lived it
List savings as a mandatory expense in your budget so you treat it as a necessity rather than optional leftover money.
It prevents your brain from treating the contribution as optional.
2 people, independently
Start an emergency fund to improve life stability.
One person reported their life became much better after starting one.
one person who lived it
Save small amounts from every paycheck into a liquid cash reserve.
Having cash on hand reduces pressure and prepares you for rental deposits (first, last, and security).
one person who lived it
Start saving for your children's college education early.
This avoids putting them in debt like previous generations.
one person who lived it
Avoid checking accounts that charge monthly fees or penalties for falling below minimum balance requirements.
These fees deduct from your hard-earned money.
one person who lived it
Compare online banks to traditional banks and credit unions, as online banks often offer superior rates.
Traditional banks and credit unions typically offer <1% interest on deposits.
one person who lived it
Open new accounts at existing institutions to access higher promotional rates.
Institutions may not increase rates on existing accounts but offer higher rates for new ones.
one person who lived it
Save money earned from quitting substances for future security rather than spending it all on temporary material things.
Spending it all on temporary items might lead to regret later.
2 people, independently
Save money specifically for holiday gifts so you do not have to skip paying bills to afford them.
one person who lived it
Maintain savings to provide financial security against bad events.
It acts like an insurance policy.
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Maintain minimum balances at local credit unions to avoid fees, while parking excess funds elsewhere.
To avoid monthly low balance fees while earning decent interest on the rest.
one person who lived it
Balance debt repayment with building savings simultaneously.
Savings are important alongside paying off debt
one person who lived it
Build actual savings, making sacrifices if necessary.
Savings is mandatory.
one person who lived it
Save a portion of every paycheck into a separate emergency fund distinct from other savings goals.
To cover unexpected events such as illness causing missed pay or other unforeseen circumstances.
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Automatically send a portion of every paycheck to a retirement fund, such as a Roth IRA invested in a Vanguard market index fund.
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Be aware that international purchases or transfers can incur unexpected transfer fees, even if the merchant's location is not obvious.
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