How to save money fast

We've all been there. You set a goal — a vacation, emergency fund, down payment on your dream home — and start saving, but then you realize it will take longer to reach than you thought. You know you need to ramp up your savings, but how?

Determining how to save money fast requires a careful assessment of your income and expenses — and a strategy to reach your goal. Growing your savings fast is possible, but it takes focus and discipline to make it happen. You can develop an effective game plan by following a few simple steps.

1. Determine your goals

Before you can save money more effectively, you need to have clear savings goals that you're working toward. It's easier to stay motivated when you can see yourself buying a new car, enrolling in college, or finally paying off your credit card debt. Saving money fast does require sacrifices, which may be difficult at times, but remembering your goals can help you stay focused.

After you've identified a goal, you need to determine how much you need to save and how long you need to reach it. For example, if you want to save for new kitchen appliances, you might set a budget of $5,000 with a timeline of one year. This would mean you need to save about $417 per month.

2. Review your budget

You'll need to have a clear picture of your monthly income and essential monthly expenses (mortgage or rent, utilities, car payment, insurance, etc.). This will help you understand how much disposable income you have to work with when mapping out your savings plan.

If you already have a budget, you will need to adjust it with your new savings goals in mind. If you don't have a budget, you will need to create one to know where your money is going.

Here are some budgeting strategies to consider:

• 50/30/20 budget: Your after-tax income is divided into three categories: 50% for your essential needs, 30% for your wants and 20% for your savings.
• Zero-based budget: Every dollar you earn is assigned a purpose, so all of your money is accounted for. Your total income, less your expenses, savings and debt payments, should equal zero.
• Pay-yourself-first budget: Part of your income is set aside for your savings before you pay your bills each month.
• Envelope system budget: Each month, you place the cash for each budget category in a labeled envelope (groceries, entertainment, etc.). Once an envelope is empty, you can't spend more in that category until the next month.

3. Keep debt in check

Debt can be one of the biggest barriers to saving money. Buy now and pay later with your credit card may sound like a great way to manage expenses, but it could lead to accumulating more debt than you can handle. The interest can quickly add up, making your purchases far more expensive in the long run and leaving less for your savings.

To grow your savings faster, avoid taking on new debt unless it's absolutely necessary. A debt consolidation loan can also be used to simplify your payments and potentially lower your interest rates by combining multiple debts into a single loan. For loans you can't pay off quickly — like a student loan, car loan or mortgage — continue making regular, on-time payments or consider refinancing options if they will help you save.

4. Look for ways to cut expenses

One of the simplest ways to save money is to avoid overspending. Cutting back doesn't mean you have to give up everything you enjoy. It's about finding creative ways to spend less without feeling deprived.

Here are some practical ways you can keep more money in your pocket:

• Bring your lunch to work
• Skip the coffee run
• Look for affordable entertainment
• Buy used as much as possible
• Dine in, not out
• Shop with a list at the grocery store
• Cancel unused subscriptions, streaming services and memberships
• Wait 24 hours before making a purchase
• Take advantage of sales

5. Take advantage of automatic tools

Automating your savings helps you avoid the temptation to spend money you are setting aside. One way you can do this is by directing a portion of your direct deposit payments into a savings account each time you get paid. You can also set up automatic transfers each month to move funds from your checking account to your savings account.

Using apps is another way to simplify saving. For example, with the Citizens Savings Tracker®¹, you can set and track goals and enroll in automatic recurring transfers. The app also has a "round up²" program that automatically rounds up your debit card purchases to the nearest dollar, with an optional additional savings amount added to each transaction, and the "change" is transferred to your savings.

6. Find additional income

If you have some free time, you may be able to earn additional income to grow your savings faster. Small amounts of extra income can make a big difference over time.

Here are some opportunities to consider:

• Get a side job
• Resell items
• Freelance
• Rent out a room or storage space
• Tutor students
• Sell handmade items or custom designs
• Offer pet sitting, grooming or dog walking services

If your credit card or debit card offers cash back rewards, you can also take advantage of it to earn extra money on essential purchases. This strategy only makes sense if you can pay off the credit card balance each month to avoid interest charges.

7. Look into other investment options

The use of savings accounts is common because they are easy to set up and have low minimum deposit requirements, but other investments may offer higher returns. It depends on your timeline and financial goals. Two options to consider are high-yield savings accounts and certificates of deposit (CDs).

High-yield savings accounts have significantly higher interest rates than traditional savings accounts. They are typically offered by online banks, and you can make up to six withdrawals each month per federal regulations. CDs offer guaranteed returns for keeping your money in the account for a specific term, which may be a few months to several years.

Save money fast to reach your goals quickly

You can learn how to save money fast with the right strategy and discipline. By assessing your spending, looking for ways to earn more, using financial tools and maximizing the interest you earn, you can make significant progress toward your goals in less time.

Ready to take your savings to the next level? Citizens offers a range of savings accounts to help you save smarter and achieve your goals. Explore our savings accounts today to find the perfect fit for your needs.