Starting small, utilizing automatic savings, and seeking high-yield accounts can help improve savings habits.
From Yahoo Finance: 2025-03-27 16:54:00
In a recent survey by Yahoo Finance/Marist Poll, 35% of U.S. adults are “very” or “completely dissatisfied” with their 2024 savings, with 33% unable to cover bills for even one month without income. Tips include starting small, utilizing automatic savings, and seeking high-yield accounts or IDAs for matched contributions.
Building a savings habit involves cutting unnecessary expenses, like unused subscriptions, and temporarily swapping costly habits for cheaper alternatives. Start by saving an amount equal to one month’s rent or mortgage, then work towards an emergency fund covering at least three months’ living expenses.
To avoid lifestyle inflation, increase savings when financial situations improve rather than spending more. For example, redirect pay raises or debt payments towards automatic savings contributions. Even one-time boosts like tax refunds or bonuses can be added to savings to build a strong financial foundation.
Read more: How to start saving money from scratch