Simple money tips to help you save more and reach your goals

We often hear the importance of setting saving goals, but reaching that target is where the real challenge begins. To stay on track and adopt lasting financial habits, try adding these money management tips for taking control of finances, spending less, and building an actionable savings routine that can help turn plans into reality when you’re saving for a goal.

How to make a savings plan

Creating a well-defined savings strategy helps provide a roadmap to follow when saving for a goal, making it easier to stay organized, monitor progress, and adjust as needed. By breaking it down into steps, it becomes easier to stay organized, monitor progress, and make improvements without becoming overwhelmed. Here are four steps for getting a savings plan started:

1. Define what you’re saving towards:

Start by thinking about the purpose of the savings goal. Is it for a future purchase, an upcoming trip, or a child’s education? Whatever the reason, having a clear objective can help you create a planning process that is more effective.

2. Determine how much you need to save:

Estimate the total cost of the goal, including any related expenses. Knowing the exact amount helps create a concrete target to work toward.

3. Establish a timeline to reach your goal:

Decide how long there is to save for the goal. Whether it’s six months or five years, setting a timeline helps determine how much will need to be set aside and how often to ensure steady progress is being made.

4. Set your weekly/monthly savings target:

Now divide the total goal amount by the number of weeks or months in the timeline to create a manageable savings strategy. This helps break the goal into realistic, trackable pieces.

10 tips to help you put your savings strategy into action

Once a savings strategy is in place, the next step is putting it into action! An important part of reaching money savings goals is saving more and spending less. Try these 10 tips for tightening a budget and freeing up more money that you could put toward your financial priorities.

1. Spend less: Make a budget (and stick to it)

A monthly budget is the foundation of any effective savings strategy. Start by listing all sources of income, then track monthly expenses, including fixed (like rent and utilities) and variable (like groceries or entertainment). Identify areas where spending can be reduced and set limits for non-essentials. Sticking to a budget can help make sure your money is being used intentionally and supports your overall savings goals.

2. Save more: Set up automatic savings from your paycheck

Scheduling an automatic deposit into savings is an easy way to stay consistent without having to think about it. Set up a direct deposit or scheduled transfer that moves a set amount from a paycheck or checking account into a separate savings account. By “paying yourself first,” it makes saving a priority before there’s a chance to spend the money elsewhere. Over time, these small, regular contributions can add up significantly when saving for a goal.

3. Spend less: Audit your recurring charges

Recurring expenses like subscriptions, memberships, and app fees can quickly drain a budget over time. Review bank statements or use a budgeting app to identify monthly charges that may have been forgotten about or are no longer used. Cancel or pause anything that isn’t essential. Trimming just a few unused services can free up extra money to be put to better use.

4. Save more: Don’t take funds from your future

While it may be tempting to pull from retirement savings, like a 401(k) plan, to reach short-term financial goals, doing so can push long-term savings goals off track. Remember, early withdrawals often come with fees and tax penalties and can reduce the value of the money being taken out. Plus, withdrawals can reduce the amount benefiting from compound growth that helps build those retirement savings over time.

5. Spend less: Plan meals and limit takeout

Food spending can add up quickly, especially when dining out or ordering delivery. Planning meals for the week and cooking at home more often is typically cheaper and lets you control a food budget more effectively. Even swapping out just a few takeout meals per month can lead to noticeable savings.

6. Save more: Consider opening a high-yield savings account

High-yield savings accounts typically offer better interest rates than traditional money market accounts and can help money grow faster. Over time, even a slightly higher interest rate can help build up the balance. Be sure to choose an account with no fees and offers easy access to funds when needed.

7. Spend less: Delay non-essential purchases

Impulse purchases and shopping sprees can drain a budget and increase debt. Giving yourself a 24-hour or even a 30-day waiting period before making a purchase can help provide time to think through the decision. Oftentimes the urge to buy fades and leaves more funds for essentials and money saving goals.

8. Save more: Set short-term savings challenges

Savings challenges, like a no-spend weekend, have been growing in popularity to encourage people to cut spending and save more. These short-term goals help develop stronger saving habits and can make a big difference when done regularly. Plus, seeing the results can help you stay motivated to keep moving toward larger financial goals.

9. Spend less: Shop with a list

When shopping for groceries, household items, or clothing, going in with a list helps avoid impulse purchases and keeps spending within budget. Avoid browsing extra aisles or online “suggested items” that can lead to unplanned spending. Following this money management tip can help keep spending in check and aligned with overall savings goals.

10. Save more: Redirect bonuses or tax refunds to savings

When a bonus, cash gift, or tax refund comes in, it can be tempting to spend it right away. Instead, this can be a great opportunity to boost savings by putting a portion or all of it into savings. Doing this can accelerate progress toward a savings goal without affecting your regular budget.

Why is it important to set goals when saving?

Setting clear money saving goals is essential for effective financial planning. Short-term savings goals create manageable milestones that help keep you motivated and make it easier to track progress along the way to larger savings goals. This approach also allows you to make any necessary adjustments following changes in income, expenses, or life events while still keeping larger financial goals in sight. Setting aside money can help establish a financial buffer that may offer support in the event of an unplanned expense.

Saving for a long-term goal? Ask North American about our life insurance & retirement solutions!

No matter what long-term goals are on your list, No matter what long-term goals are on your list, North American is here to help you create a custom roadmap to turn them into reality. Our team is committed to helping individuals and families build a more stable financial future. Whether you're planning for retirement or protecting your loved ones, we offer a range of life insurance and annuity solutions designed to support your long-term financial goals.

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