Here's How I Plan to Save an Extra $9,000 in 2023

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KEY POINTS

  • Many Americans are working on important financial goals this year -- like saving for future costly expenses and emergencies.
  • If I can achieve my goals, I'll end up with more than $9,000 extra saved in 2023.
  • Setting a realistic goal, keeping your money in an interest-earning account, and automating the savings process may help you succeed more.

You're not alone if you have big savings goals this year.

Having extra savings can make it easier to deal with stressful financial situations. Many people have a big goal to build and grow their emergency funds to better prepare for the unexpected. Like many other Americans, I've been working to boost my emergency fund balance. In 2023, I plan to save an additional $9,000.

If you're working to save more money this year, you're not alone. A fall 2022 Bank of America study found that the top resolution for 2023 was to increase savings. A whopping 44% of respondents said this was a goal for the year. Even if you can only save a small amount of money, that's okay, as every bit of extra cash saved adds up. If you have hopes to save more, it's not too late to create a plan and make your goal a reality.

What I'm doing to save an extra $9,000 this year

You may be wondering what steps I'm taking to reach my savings goals this year. Here is the process I followed to set myself up for success. It may help you formulate your own savings strategy.

1. Consider all expenses and set a realistic savings goal

First, I figured out how much money I could afford to save without changing my spending habits. In addition to saving for emergencies, I regularly save money to cover my freelance taxes, so I also considered that expense and the cost of my everyday bills with wiggle room for inflation. I decided to set aside $350 every two weeks. I'll have $9,100 saved at the end of 2023 -- which is much better than $0 saved.

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2. Automate the savings process to stay on track

Next, I made sure to automate the entire savings process, so I don't get forgetful. After outlining my yearly goal, I set up automated transfers through my bank. My money is automatically transferred from my checking account to my savings account every two weeks, making my life easier. You can easily set up automatic transfers through your bank's website or mobile app, which may help you stay on track with your goals.

3. Keep extra money in an interest-earning bank account

I keep my extra savings in a bank account that earns interest. Any extra money earned is a win, so I use a high-yield savings account. You're missing out if you're not keeping your spare cash in a savings account. I also find that keeping my savings in a separate account keeps me from touching the money, so it's there when I need it.

4. Contribute extra when the opportunity arises

Finally, I make sure to save additional money when I get the chance. My income fluctuates as a freelance writer, and some months are much busier than others. I have extra income when this happens, so I move more of it into my savings account. Doing this keeps me from spending carelessly and helps to boost my total savings even more.

Don't give up on your saving goals

If you didn't start saving at the start of the year, it's not too late to begin now. Set a goal and outline a plan now so you can make it happen. It's okay to start with a smaller goal, as you need to do what works best for your financial situation.

If you're starting your savings journey in March and want to save $1,500 by the end of 2023, plan to set aside $150 once a month or $75 twice a month. If you need to free up extra income to reach your goals, budgeting apps can help you avoid overspending. For additional money management tips, check out our personal finance resources.

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