Tips to Supercharge Savings: From a Financial Advisor

The start of a new year brings fresh opportunities to strengthen your financial future. It’s the perfect moment to set new goals, create a plan, and take actionable steps to achieve them.

For many, this includes building better savings habits. In fact, nearly two-thirds of Americans are considering a financial resolution for the year ahead. Among the most popular goals are saving more money, reducing debt, and curbing spending, with saving more taking the top spot for 2025.

One effective way to grow your savings is by adopting a "pay yourself first" approach. Even small changes, like raising your savings by just 1% of your income, can make a big difference over time.

Here are five strategies to help you get started.

1. Make saving a priority.

Balancing spending and saving often requires intentionality and planning. Even for high earners, building healthy savings doesn’t happen by accident. Setting clear financial goals and committing to delayed gratification can significantly improve your chances of success.

Treat saving like a non-negotiable expense—just like a bill you must pay. For example, if you want to save $6,000 for an emergency fund by 2025, you can divide it. This means saving $500 each month or about $230 from each bi-weekly paycheck. This kind of structured approach can make your goal more manageable and achievable.

If you’re new to tracking your spending, it’s a great starting point. Many tools can help you monitor your income, expenses, and progress toward your financial goals.

2. Use automation to your advantage.

Automation is a simple yet effective way to build savings consistently. Much like how automatic enrollment in workplace retirement plans boosts participation, setting up automatic transfers to savings or investment accounts can ensure regular contributions.

You can start small, even with just $1 at a time, and let automation do the work for you. Tools like recurring investments allow you to set up and forget about your contributions.

For example, a “52-week challenge” begins with $1 in the first week. Each week, you add $1 more until you reach $52 in the last week. This method helps you save money easily over the year.

Automation not only simplifies the process but also reinforces healthy financial habits, making saving a natural part of your routine.

3. Focus on emergency savings.

Rebuilding or creating an emergency fund is a top priority for many. A good starting goal is to save $1,000 for unexpected expenses. From there, aim to build a fund that covers 3–6 months of essential living expenses.

Recurring transfers can be a valuable tool to steadily grow this safety net. By committing to a regular savings schedule, you can gradually reach a level of security that works best for your circumstances.

4. Take advantage of tax breaks.

Tax-advantaged accounts like IRAs, 401(k)s, HSAs, and 529 plans can boost your savings. They offer possible tax benefits. Prioritize accounts that offer matching contributions, like a 401(k) or HSA. Employer matches are essentially “free money,” so make sure you’re taking full advantage.

HSAs, in particular, are versatile savings vehicles. They provide three tax benefits. First, contributions can be deducted from your taxes.

Second, any growth is tax-free. Lastly, withdrawals for qualified medical expenses are also tax-free. If you can, contribute and invest within your HSA to build a fund for future medical costs, including those in retirement.

Aim to save at least 15% of your pre-tax income annually for retirement, including any employer contributions. This can involve a combination of retirement accounts to maximize your savings potential.

5. Gradually increase your savings rate.

When you receive a bonus, raise, or other financial windfalls, consider allocating a portion toward savings. Even a 1% increase in your savings rate can lead to significant long-term growth, thanks to compounding.

The big picture: Slow and steady wins the race.

Building a solid savings foundation takes time and consistency. By taking advantage of tools like automation, leveraging tax benefits, and gradually increasing your contributions, you can make steady progress toward your financial goals. Over time, these habits can help you thrive financially towards securing a brighter future.

Sources:

https://www.fidelity.com/learning-center/personal-finance/5-ways-to-save-more

Disclosures:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information