Dean Drobot / Shutterstock.com
People are not very hopeful for their savings accounts these days.
GOBankingRates surveyed more than 1,000 Americans over the age of 18 to find out how much they hope to save over the next year. According to our results, 58% of respondents were not very optimistic, hoping they could save $5,000 or even less. About 30% thought they might save somewhere up to $1,000 — with 11% hoping they could save even $100.
Just under 65% of women said they hoped to save just $5,000 or less next year, compared to slightly over half of men. Men were more hopeful of reaching $10,000.
Younger adults also hoped to be more aggressive with their savings. Over 14% of respondents between the ages of 18 and 24 said they wanted to save over $20,000 in the next year, compared to only 4% of people 65 and over.
Most people, however, stated that they hoped to just save $5,000 or even less. If you fall into this category, here are five easy tips to hit your goal.
Cut Down on Unnecessary Expenses
Rohit Lohia, a financial blogger and founder of Branded Bucks, noted, “The easiest way to save $5,000 is to cut down on unnecessary purchases inspired by social media. Scrolling TikTok and Instagram reels often leads to buying things you don’t really need.
“Reduce your time on these apps to avoid exposure to ads and recommendations. Instead, spend time on hobbies like reading, exercising or learning new skills. Being mindful of where your time and money goes is the first step to spending less and saving more.”
Create a Budget and Stick to It
Most of our financial experts agree you need to create a budget in order to hit your financial goals. Luis Manzano, founder of oklanzarote.com, stated, “One effective tip that has helped me save a significant amount of money — over $5,000 last year — is creating and sticking to a detailed budget.”
He explained, “I meticulously tracked my income and expenses, categorizing every expenditure, no matter how small. This allowed me to identify areas where I was overspending and make necessary adjustments. By having a clear understanding of my financial inflows and outflows, I was able to allocate funds more efficiently, cut unnecessary costs and prioritize saving and investing.”
“Furthermore,” he added, “I set specific savings goals and regularly monitored my progress, which provided motivation and discipline to stay on track. A well-structured budget is a powerful tool for anyone looking to manage their finances effectively and build a substantial savings cushion.”
Eat at Home and Use Public Transportation
Linda Chavez, founder and CEO of Seniors Life Insurance Finder, suggested that people wanting to save money over the next year should consider eating at home.
“Although this may not always be feasible,” she said, “cooking your own meals can significantly cut down on costs. Additionally, meal prepping and planning ahead can also help reduce food waste and save you money in the long run.”
She also recommended that people think about using cheaper transportation.
“Another great way to save money is by using public transportation instead of owning a car or taking taxis,” she said. “Not only does this save on gas and car maintenance costs, but it also helps reduce carbon emissions.”
Shop Smart and Cut Down on Subscriptions
Chavez said people can save big if they shop smart and cut down on subscriptions.
“When grocery shopping, it’s important to shop smart and look for deals or discounts,” she said. “This can include buying in bulk, using coupons or purchasing items that are on sale. It’s also helpful to make a list before heading to the store and sticking to it to avoid impulse purchases.
“In today’s digital age,” she added, “it’s easy to accumulate multiple subscriptions for streaming services, music platforms or online shopping memberships. Take a look at your monthly expenses and consider cutting down on unnecessary subscriptions to save some extra cash.”
Another way you can set aside money is by doing things yourself instead of hiring pricey professionals.
“Instead of hiring someone for home repairs or purchasing new furniture,” Chavez said, “consider tackling some DIY projects yourself. There are plenty of resources and tutorials available online that can help you save money by doing things yourself.”
Now that you have the tips and tricks from the experts, you can start putting money aside to reach your financial goals next year and beyond.
More From GOBankingRates