8 Tips For Finding More Savings Opportunities In 2020

More than half of Americans do not think they are saving enough to reach their goals. Check out the below tips to help build your financial strategy in 2020.

1. Review your expenses.

The first step to saving is understanding the way you spend. Tracking expenses and breaking them down into siloed categories provides a solid foundation for spending awareness.

2. Build a budget.

According to a Bank of America study, 66% of people who were not taught money management skills at a young age are not currently saving. But it’s never too late to start! To form a basis for your savings, it's important to assess your needs and wants and measure them against your income to identify a new category: additional funds. To do this, look at what your "fixed" expenses are (such as rent or utilities) and then review your "flexible" expenses (such as going to the movies or dining out).

3. Set realistic goals.

Establishing a tangible target for savings can help give your aspirations real momentum. A recent study found that the top three consumer savings goals are increasing savings, saving for retirement, and saving money for travel.

4. Create a savings account.

Opening a savings account is a foundational step in your savings journey, and finding one with benefits and rewards could be a real bonus.

5. Cut where you can.

A Bank of America survey found that 36% of people looking to improve their finances agreed that pulling back on spending was an essential component. It may sound obvious, but determining cheaper ways to spend on things you love — such as pivoting a social event from an expensive bar to a spot with a happy hour — could prove a small way to save without sacrificing.

6. Get a little automatic.

Establishing automatic transfers from your checking to your savings account is a great way to help save.

7. Place emphasis on quality.

When making pivotal purchases, avoid buying something exclusively because it's cheap. For example, it’s better to buy a quality fridge that will last for years rather than a cheap one that could require repairs. Investing in quality will pay off in the long run and keep you from making needless repurchases of lower-quality goods.

8. Have an emergency fund handy.

Should anything in your life go awry, have a fund to fall back on. An emergency fund can keep you afloat so you do not have to dip into your checking account or struggle to cover bills.

Images via Getty/iStock.

Information featured in this article was inspired by a survey held by Bank of America, in which 1,516 consumers were asked about their past and current savings attitudes and behaviors in January 2020.

Looking to begin an effective savings journey in 2020? Start with a savings account from Bank of America.