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PHNjcmlwdCB0eXBlPSJ0ZXh0L2phdmFzY3JpcHQiIHNyYz1odHRwczovL3N0YXRpYy5teWZpbmFuY2UuY29tL3dpZGdldC9teUZpbmFuY2Vfdmlld3BvcnRfZGV0ZWN0aW9uLmpzPjwvc2NyaXB0PjxzY3JpcHQgYXN5bmMgdHlwZT0idGV4dC9qYXZhc2NyaXB0Ij5teWZpV2F0Y2hXaWRnZXQoJ215ZmlXaWRnZXRfMScpO215ZmlXYXRjaFdpZGdldCgnbXlmaVdpZGdldF8zJyk7bXlmaVdhdGNoV2lkZ2V0KCdteWZpV2lkZ2V0XzEuMScpOzwvc2NyaXB0Pg==Jean Folger is a freelance writer and editor with a knack for tackling complex subjects using simple language. She’s passionate about helping people make better financial choices so they have more money and time to spend on the things that matter most. In her 15+ years as a freelance writer and editor, she’s specialized in real estate, retirement, investing, and other personal finance topics. Jean has written extensively for SFGate, Business Insider, The Motley Fool, Opendoor, Prudential, Investopedia, and more. She co-founded PowerZone Trading, which has provided award-winning software, consulting, and strategy development services to active traders and investors since 2004. Jean graduated with a bachelor's degree from Ohio University. Previously, Jean was a licensed real estate broker, an English teacher, and an adventure travel trip leader. And, she’s also the proud parent of a Team USA Olympic athlete.Hearst Television participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. This may influence which products we write about and where those products appear on the site, but it does not affect our recommendations or advice, which are grounded in research.Mobile app users, click here for the best viewing experience.Benjamin Franklin was onto something when he said, "Beware of little expenses; a small leak will sink a great ship." Of course, large expenses can sink the ship, too, but the small, everyday purchases often sneak up and wreck your budget — and your ability to save.Most people struggle to save money. According to a Bankrate survey, 49% of U.S. adults have less savings (39%) or no savings (10%) compared to a year ago. And more than two-thirds (68%) say they couldn't cover their living expenses for just one month if they lost their primary income source.The good news is that you can ramp up your savings by tweaking your spending habits. If you're wondering how to save money, check out these 17 money-saving tips to help you get (and stay) on track. Money saving tips1. Make a budgetSaving is exponentially more challenging if you don't know where your money goes. Make a budget so you know what comes in each month, how much goes out, and what you could do differently (like minimizing restaurant spending). Cancel subscriptions and memberships you no longer use, and watch out for free trials that have rolled into monthly charges. In the future, set reminders to cancel those trials on time.2. Set savings goalsOne of the best ways to save money is to set short-term and long-term savings goals. Common short-term goals include travel funds, car down payments, and emergency funds (three to nine months of living expenses). Long-term goals might be a home down payment, remodeling project, college fund, or retirement savings. Estimate how much you'll need for each goal and build it into your budget.3. Try a money-saving challengeSaving can feel like a burden, but there are ways to make it less painful. A money-saving challenge gamifies the task — it can also unleash your competitive spirit and boost your motivation along the way. Some challenges focus on stashing money, while others take a limit-your-spending approach. Either way, a challenge can be a fun (and effective) way to boost your savings.4. Understand needs vs. wants — and spend mindfullyNeeds are things required to survive, like food, shelter, and essential clothing (many experts also consider an emergency fund a need). Wants are items or experiences you'd like to have but don't need for survival. Your needs should always get top priority in your budget; plan accordingly to avoid overspending on wants.5. Tap the breaks on new purchasesHere's a trick for avoiding impulse spending. Instead of buying something on the spot, wait a few days (or so) and revisit the idea. If you no longer feel passionate about the item or haven't even thought about it in days, odds are you can do without it. 6. Tackle your debtInterest charges can cost hundreds of dollars a month, so it pays to tackle your debt ASAP. One option is the avalanche method, where you pay off your highest-interest debts first. Alternatively, the snowball method prioritizes your smallest debts. Either way, the sooner you pay down your debt, the more cash you'll have in your budget to spend, save, or invest.7. Automate your savingsOne of the best tips for saving money is to make it automatic. Set up direct deposit to transfer part of your paycheck into your savings account or IRA — or automate regular transfers from your checking account into your savings. If you have a workplace retirement saving plan, contribute enough to take full advantage of your employer's match (aka free money).8. Consider a CDA certificate of deposit (CD) is a time deposit that pays a fixed interest rate for a set period (aka the "term"). CDs offer some of the highest interest rates for savings products, but you have to be willing to park your cash for several months to several years: A potentially steep penalty applies to early withdrawals. You can find the best rates at online banks and credit unions.9. Automate your billsLate payments can trigger late fees and penalty (higher) interest rates, driving up your costs. Automating your payments helps you avoid these fees and keeps you from stressing about deadlines. Another bonus: A history of on-time payments helps boost your credit score, which helps qualify you for lower interest rates and better terms — both of which can save you money.10. Negotiate for lower billsMost adults have stacks of monthly bills for cell phone and home phone service, internet service, cable or satellite TV, gym memberships, and the like — and there's a good chance you're overpaying. Call each provider and explain (nicely) that you're considering canceling your service, then ask something like, "What can you do to lower my monthly bill?" Negotiating takes time, but it can be well worth the effort.11. Shop around for car insurance ratesAccording to Bankrate, the average monthly cost for car insurance is $168 for full coverage and $52 for minimum coverage. You can save by taking advantage of insurance discounts, such as claims-free, good student, bundling, and safe driving discounts. Each auto insurer sets its rates, so the same coverage can cost more or less from another provider. Compare quotes from at least three companies to find the lowest price for the coverage you need.12. Manage your mortgageRefinancing can help you lock in a lower rate, lower your monthly payment, or repay your loan sooner. It's generally a good idea if you can lower your rate by at least 0.75%. Another money-saving option is to make biweekly mortgage payments (where you make half your monthly payment every two weeks). You'll end up paying an extra month each year, so you'll pay off your mortgage faster and pay less interest over the life of the loan. 13. Claim tax credits and deductionsTax credits reduce the amount of tax you owe or increase your refund, while tax deductions lower your taxable income. Both can lead to significant savings at tax time, so claim the credits and deductions you're entitled to. Hire a tax preparer if you're unsure what to claim; the expense can more than pay for itself.14. Time major purchasesShopping during seasonal sales can save you money on appliances, cars, electronics, furniture, and more. For example, you can get the best deals on TVs right before the Super Bowl, while appliance sales tend to coincide with holiday weekends like Memorial Day and Labor Day. School supplies and laptops usually go on sale during August — when you can also take advantage of tax-free weekends.15. Plan out your grocery shoppingA little prep work can help you save money at the grocery store. Plan out your meals, check your pantry to see what you already have, and then make a list — and stick to it. Consider using a coupon app (like Flipp) to find money-saving coupons by ZIP code. Be sure to take advantage of your store's loyalty program for in-store discounts and savings at the fuel pump.16. Go to the library, or use a library appThe average paperback novel costs about $14 to $18, which adds up if you're an avid reader. Before buying a new book, visit your local library or used bookstore. Another option is to download a free library app (such as Libby), which lets you borrow from a vast selection of eBooks, audiobooks, magazines, and more from your local library.17. Open a high-yield savings accountNo matter how you trim your budget, consider where to stash those savings. A savings account pays interest and provides a safe place to park your cash (deposits at FDIC-member banks and NCUA-member credit unions are insured up to $250,000). Another bonus: Your deposits are less accessible than your checking account (no ATM card, debit card, or checks), so you may be less tempted to spend. Choose a high-yield savings account (offered by online banks and credit unions) for the best interest rates and lowest fees. Savings account interest rates are the highest in years, so now is an excellent time to stash your cash in a high-yield savings account.Banking FAQsWhat are the benefits of online banking?There are many pros and cons of online banking to consider. The pros include online convenience, lower fees, and often better interest rates. The cons may include no physical branch locations and no cash deposits. When assessing online banking options, it’s good to consider how you currently use your bank and whether you’re willing to make certain trade-offs to access the benefits of online banks.Online banks tend to offer the highest return on your deposits. In fact, savings account rates and 1-year CD rates at the best online banks are upwards of 5.00% right now.How do I switch banks?Switching banks can seem daunting, but it’s actually a fairly straightforward process. Once you’ve found a bank that’s right for you, opening a new account can be as simple as filling out forms with basic information — name, address, and social security number (you may also have to provide a government ID). Your new bank may offer a switch kit, which can help keep you organized during the process. You'll want to shop around to find the best bank for your needs. Consider maintenance fees, availability of branches (if in-person banking is important to you), variety of savings products and tools, and, of course, interest ratesPro tip: It’s usually a good idea to leave your old account open for one month after opening the new one so you have time to redirect automatic recurring payments to the new account.What is a checking account?A checking account is a deposit account used for everyday expenses. It provides easy access to your cash, and you can write checks, make ATM withdrawals, use a debit card for purchases, make (and receive) online payments, and accept direct deposits. While some checking accounts are interest-earning, most pay little to no interest. What is a high-yield savings account?A high-yield savings accounts offers account holders a higher interest rate than a traditional savings account, which allows people to grow their money faster. The interest rate that these accounts offer is noted as APY, or annual percentage yield. Some high-yield savings accounts now offer an APY that tops 4% — about 1,600 higher than the interest rate on traditional savings accounts.What’s the difference between APR vs. APY?Figuring out the difference between APR vs. APY can be confusing. APR describes how much interest you’ll be charged when you borrow money, whether on a credit card or loan of any kind — car loan, personal loan, student loan, or home equity loan. It’s important to note that while interest rate and APR are related, the terms aren’t interchangeable. While APR considers interest rate, it also includes other costs associated with borrowing money, such as loan origination fees, mortgage broker fees, mortgage insurance premiums, discount points, and closing costs. In this way, APR more accurately captures the actual cost of borrowing money.APY describes the yearly interest you earn on savings and can be referred to as EAR, or effective annual rate. If you’re considering opening any savings account – whether a high-yield savings account or a CD (certificate of deposit), the APY should be a central part of your decision. What is an emergency fund?An emergency fund is a savings account where you set aside money for unpredictable events — the loss of a job, medical bills, accidents and so on. It provides a financial safety net so you don’t have to resort to high-interest credit cards or loans to pay for your expenses. How much money should I have saved?There’s no exact science to how much money you should have saved. One good place to start is to figure out how much you’d need to get by for three to six months if you were to lose your income. Now compare your goal with your current account balance. If you have a gap to bridge, divide it by a reasonable timeline based on your income. Adding an extra $6,000 over the course of a year would mean depositing $500 each month into your savings, for example.Editorial Disclosure: All articles are prepared by editorial staff and contributors. Opinions expressed therein are solely those of the editorial team and have not been reviewed or approved by any advertiser. The information, including rates and fees, presented in this article is accurate as of the date of the publish. Check the lender’s website for the most current information.This article was originally published on SFGate.com and reviewed by Lauren Williamson, who serves as Financial and Home Services Editor for the Hearst E-Commerce team. Email her at lauren.williamson@hearst.com.