Worried about coronavirus and the economy, Americans are saving more than they have in decades. The personal saving rate (FYI that’s the amount people are saving as a percentage of their disposable income) reached 33% in April. To put that in perspective, that jumped up from 8% which is where it was in February. After February the number jumped to 13% in March, and reached a new high of 33% in April. This is the highest savings rate recorded by the way since 1959. Yeah, let that sink in for a second, people are freaked and are doing everything they can to save.
Whether you fall into the camp that is already doing whatever it takes to save right now, or you realize how important it is and want to get on this ASAP, here are our top tips to making sure you are saving as much as possible, as easily as possible.
1. Put Your Savings On Automatic Pilot And Save More Than You Ever Thought You Could
One of the hardest parts of saving is actually doing it, which is why so many people have been successful saving by putting it on auto-pilot. Think of saving like this: Set it and forget.
That’s why everyone who wants to save should sign-up for Digit. Digit is a micro-savings app that when connected to your bank account, learns your spending habits and income to help you save a little bit of money every few days. You don’t have to ever think about saving, which makes it super easy.
Sophia Randazzo on our team has been using Digit for about a year and has saved a lot with it. “This is the funny thing about Digit: you don’t realize how much you are saving until you check your account a month later and go–holy cow–I had no idea I saved that much. And that’s pretty much how my saving experience went.”
Another big plus with Digit? You can access your saved money at any time, so there’s no need to worry that if something comes up you won’t have access to that cash.
2. This App Turns Saving Into A Game — And People Are Seeing Big Results
Wouldn’t it be easier to save if it was actually fun? Long Game rewards you for everyday spending and saving with games you can play for cash prizes up to $1,000,000.
Here’s how it works: download the app, set up an account and get a full banking experience with an FDIC-insured savings account and a Visa debit card. You earn interest on your savings, plus every time you use your debit card it rounds up to accelerate your savings.
The magic is that the more money you save the more games you get to play in the app. The concept is called “Prize Linked Savings” and means using cash prizes to help people to achieve their financial goals. With Long Game you can play fun, easy games in the app and win real cash to keep you motivated to save more.
Christina Biagioli on our team tried out the app pretty aggressively to see how well it worked. Her big takeaway? “You don’t have to be financially savvy or know anything about market or anything really financially based — you just have to have a desire save and like to play games.”
To get started you’ll get 500K free Coins when you set up your account, and up to 2M more when you deposit into your account and start using your card.
3. Cut All Of The Unnecessary Subscriptions Out Of Your Life. This App Will Help.
According to study after study on average people spend $237.33 a month on subscription services. That’s nearly $2,900 a year! But how many of them do you actually need? And, how many are there that you’ve forgotten you’re even paying for?
Truebill finds, organizes and helps you cancel old subscriptions with the click of a button.
To get started…
- Sign up to Truebill to get a free analysis of your spending to find recurring charges being made to your account.
- See something you no longer need (including that formerly free HBOgo trial you signed up for) and cancel it directly through the app.
You can’t increase your savings rate unless you find ways to cut back. This is a quick way to add money into your savings account. Christina, who also spent a lot of time testing this app says: “I would recommend this to really anyone who has bills.”
4. Your Car Insurance Is A Big Bill That You Can Cut Immediately
A lot of people don’t know this, but every one to two years you should shop around for new car insurance. That’s because car insurance is a very competitive industry — and everyone wants your business! They are willing to give you big deals to switch providers.
And that’s where Gabi comes in. It’s a great resource for comparing car insurance rates all in one place. No need to visit multiple websites or fill out several forms to get the info you need.
To get started:
- Sign up for Gabi here.
- Connect your current policy by either uploading a PDF of it or linking your provider account to the app.
- Within two minutes Gabi will compare your policy with quotes from up to 20 other providers.
- If you see a policy at a price you like, you can buy the cheaper policy directly through Gabi.
The average person saves over $600 per year just by doing this one thing.
5. Supercharge How Much You Save With Free Help From This Bank
Are you earning interest on the money you are saving? If you aren’t, that’s a big problem. And it’s not just earning interest in general that is important to look out for, it’s how much interest.
Most banks’ savings accounts have an APY of just .06% (deposit $1,000 and you’ll earn a measly 60 cents a year that way). The all-digital bank Chime meanwhile offers a 1% APY which is really rare. To break that down, if you deposit $1,000 you’ll get $10 for free your first year. And that money will start to grow year over year after that. Remember, this is entirely safe, and you don’t even have to think about it, so that’s a big win especially over a longer period.
There are some other big reasons we are fans of banking with Chime in general, too.
Because Chime has no branches, it passes those savings onto its customers in lot’s of ways. You won’t have to deal with a minimum balance requirement, you’ll never be charged a maintenance fee or a foreign transaction fee, plus you’ll get overdraft coverage of $100 or more and access to more than 38,000 fee-free ATMs. Access your paycheck two days ahead of schedule when you set up direct deposit.
If you want to up your game when it comes to saving money, Chime is a really amazing partner — words we never imagined saying about a bank.
6. There’s A Way To Save On Food That Won’t Change How You Shop Or What You Buy
We hear from our readers all of the time that their grocery bills are just crushing their budgets. Most people just throw away their grocery shopping receipts when they get them. That’s a big mistake. That’s because Fetch Rewards can turn your receipts into gift cards.
It’s super easy to earn free gift card for shopping with Fetch Rewards without clipping coupons. Here’s how it works:
1. Download Fetch Rewards
2. Snap a picture of your receipts and the app will comb through it for participating products. Any eligible purchases you’ve made score you points.
3. Redeem your points for free gift cards to your favorite grocery stores like Whole Foods, Walmart, Target and hundreds of other retailers like Amazon, Sephora, and Nordstrom.
Final Thoughts (TL:DR)Put your savings on automatic pilot, and save big. - Digit
Turn savings into a game and see big results. - Long Game
Cut all of your subscriptions so you can save more immediately. - Truebill
This is a bill literally everyone can cut immediately. - Gabi
This bank will help you grow your savings for free. - Chime
Cut your grocery bill enormously with free gift cards. - Fetch Rewards