Here's What Americans Saved on Average in 2022

The number might surprise you.

To say that consumers had a tough time with inflation in 2022 would be an understatement. Many people had no choice but to rack up debt on their credit cards and dip into their savings just to cover their essential bills. And a lot of people also had to make hard choices, like cutting back on things that are important to them, because of soaring living costs.

It's somewhat surprising (in a good way), then, to hear that many consumers managed to save money in 2022. In fact, New York Life’s latest Wealth Watch survey found that Americans added an average of $5,011 to their savings accounts last year. And that's pretty impressive.

That said, if you didn't manage to add to your savings in 2022, don't sweat it. A lot of people barely managed to cover their bills due to inflation, so there's no need to get down about a lack of savings growth. 

But there are steps you can take to meet your savings goals in 2023. Here are some to employ.

1. Put yourself on a budget

Sticking to a budget won't make your bills less expensive. But it might help you manage them better. 

Once you're on a budget, you'll be able to see how much you spend each month on essentials versus items that are wants rather than needs. And that might prompt you to change some of your spending habits, thereby freeing up more money to save.

2. Spend carefully on non-essentials

Having a night out with friends is fun, as is dining out. But let's face it -- these are things you can live without. And if you're willing to cut back substantially, you might make great progress on your savings goals in 2023.

To be clear, you shouldn't say you'll never go to the movies or dine at a restaurant with friends. Rather, you should do those things sparingly if you're eager to save, and if you didn't manage to save the way you wanted to in 2022.

3. Get a side hustle

Cutting back on spending might help you save more money this year. But if you really want to give your savings a solid boost, consider getting a side hustle. 

The money you earn from that job won't be earmarked for things like your rent or car payments, because you're already paying for those. So you'll have a prime opportunity to sock the bulk of what you earn away in the bank (minus what you owe the IRS in taxes, assuming you're paid as a freelancer and don't have taxes deducted from your earnings upfront). 

A lot of people struggled to save money in 2022, so even though consumers as a whole saved an average of $5,011 last year, rest assured that many people no doubt saved $0. In fact, all it takes is a small percentage of super savers to pull the average savings amount upward. So it may be that most people saved $0 to $500 in 2022, but because a select few saved $100,000, it averages out to $5,011.

The point, therefore, is to not get down about last year. Instead, look ahead to 2023, and do what you can to hit your savings target.