Inflation has cooled from its peak, but many households still feel squeezed by higher day-to-day costs, which can make saving feel tougher than it “should” be.
Key Insights
- Saving more in 2026 is about repeatable defaults: better rates + fewer “leaks,” not a full lifestyle reboot.
- A high-yield savings switch can boost earnings fast when the average savings rate is still low.
- Run a 20-minute money audit, cut 1–3 easy items, and redirect the savings automatically.
- Automate transfers and “ratchet up” by $10–$25 (or ~1%) every few months so progress sticks.
Why Saving Still Matters in 2026
One helpful yardstick is the U.S. personal saving rate, the share of disposable income people set aside. The Bureau of Economic Analysis shows the personal saving rate was 4.0% in September 2025 (latest available on the BEA saving-rate page), and for context, it was 9.5% in July 2021.
However, while times are undeniably tough, there are things you can do to help you save as much as possible and get the most competitive return on the funds you do have.
Here are our top 12 tips for boosting savings during these challenging times.
Devise a Savings Plan
When planning for your financial future, having a clear goal can help you stay motivated.
Rather than thinking that you would simply like to save as much as possible, consider what you would ultimately like to achieve. You may, for instance, want to put a set amount into your children’s college funds or be mortgage-free by a certain age.
With this information, you can determine how much you need to put aside each month to achieve these goals and draw up a savings strategy.
Quick formula: Goal ÷ months = target monthly savings. If that number feels too high, start smaller and increase it gradually.
Switch to a High-Yield Savings Account
Whatever the size of your savings pot, it makes sense to get the maximum possible benefits from your funds.
FDIC data shows the national average savings rate was 0.39% (December 2025), which is still low compared to many high-yield savings accounts.
If you’d like to achieve the most competitive return, the first step is to check the interest rate you are receiving on your current savings account. If your money languishes in an account with a low rate, it’s sensible to investigate whether you could get a better deal from another bank.
When you compare accounts, check: (1) APY (and whether it’s promotional), (2) monthly fees/minimums, (3) transfer speed to your checking account, and (4) FDIC or NCUA insurance coverage.
3. Analyze Your Bank Statements
One of the first steps you should take when building a savings pot is to go through your spending with a fine-tooth comb.
This way, you can get an accurate view of how much money is leaving your account every week and see where it is going. In many cases, you may be able to identify areas in which you didn’t realize you were overspending. For instance, you may not be aware of the amount you’re paying for your weekend takeout or after-work drinks.
Likewise, you could discover that you are paying for a gym membership that you never use or streaming services you rarely watch. If so, consider canceling these and instead pay the equivalent amount into a savings account.
Mini “money audit” (20 minutes):
1) Download the last 30–60 days of transactions.
2) Label each line item: Needs / Nice-to-have / Not worth it.
3) Cut the easiest 1–3 items first (subscriptions, delivery fees, unused memberships).
4. Consider an Online Savings Account
While you might be tempted to stick with a traditional high-street name when looking for a new savings product, you may find that you can get a more competitive deal with the new generation of challenger or app-based banks.
As these companies do not have the expenses associated with running branches, such as paying rent or energy bills, they can often pass these savings on to customers.
However, while not having brick-and-mortar premises can result in more attractive rates, you may find this isn’t ideal if you prefer to manage your finances in person by visiting a branch.
Note: some apps are “fintech front-ends” that place deposits at partner institutions. Always confirm who holds your deposits and whether the funds are FDIC-insured (banks) or NCUA-insured (credit unions).
5. Have an Emergency Fund
Life is full of unexpected complications, so it’s wise to have a financial safety cushion. Should a disaster such as a job loss strike, you’ll be able to cover your immediate expenses.
However, the current financial climate could mean that building an emergency fund is more important than ever.
In the Federal Reserve’s annual Economic Well-Being report, 55% of adults said they had rainy-day funds to cover three months of expenses, and 63% said they could cover a $400 emergency using cash or its equivalent.
Personal finance gurus often advise you to have at least three months of your monthly income in an emergency fund. Even if this isn’t achievable, it is worth setting aside as much as you can afford.
If you’re starting from zero, even $500–$1,000 can reduce the odds that a surprise bill turns into credit card debt.
6. Save Automatically
By setting up an automatic transfer from your checking account into your savings account each month, you won’t be tempted to spend any spare cash on luxuries you don’t need. Many people make these transfers on the same day their paycheck arrives in their account, or shortly after. The theory is that you can save money without even realizing it.
Make it “set-and-adjust”: increase your automatic transfer by $10–$25 (or about 1% of income) every few months if you can.
7. Make the Most Out of Technology
Many app-based savings accounts include tools to help you better organize your finances. Some, for instance, let you create separate areas within your accounts to save toward different goals. For example, you may want one area for saving for your child’s education and another for buying a new car.
Likewise, some accounts include budgeting tools that help you identify trends in your spending and highlight areas in which you could save.
Other tools round up any spare change left over from your everyday transactions and automatically transfer this money into your savings.
Other helpful features to look for include: (1) spending alerts when you exceed a category, (2) subscription tracking, and (3) bill reminders so you avoid late fees.
8. Agree on a Spending Limit for Gifts
While choosing the right savings account is key to increasing your savings, building a nest egg is also about having the right mindset.
As the holiday season approaches, one of the most effective ways to save is by avoiding overspending on gifts.
In a 2025 PwC holiday survey reported by Reuters, shoppers planned to spend about $721 per person on gifts (and $1,552 total across holiday expenses).
Consider talking to your loved ones about the possibility of not buying presents this holiday season, setting a spending limit, or running a secret Santa. You can then calculate the amount that you would have spent on gifts and instead place this money into a savings account.
While you may feel reluctant to suggest cutting back on the festivities, you could find that your friends and family are also looking for the chance to save a little extra money.
This works beyond the holidays, too: birthdays, weddings, and special events all get easier when you agree on a cap in advance.
9. Get the Best Deals on Your Bills
When attempting to build a nest egg, you will probably make slow progress if you routinely overspend on household bills.
To identify potential savings, it’s a good idea to run an annual financial health check in which you review the amount you’re spending on your insurance, phone bills, and other regular monthly expenses. You should then check if you could find a better deal by switching to another provider.
In many cases, remaining loyal to the same provider rarely pays off, as companies often reserve their most attractive deals for new customers.
Start with the “big four” most people can move: insurance, internet, phone plan, and subscriptions. If you don’t want to switch, ask your provider for a retention deal anyway.
10. Reduce Interest on Your Debts
Debt interest can quietly block savings progress.
Experian reports that the average total consumer debt was $104,755 in June 2025 (including mortgages and other loans).
However, the good news is that you can get yourself back on track more quickly by reducing the amount of interest you pay on the money you owe.
Start by checking the rate on your current credit card. You could be paying less with another deal, so you may want to shift your debt with a balance transfer. This is where a credit card provider will let you move your existing debt from your current lender to a product with a lower interest rate.
By paying less interest, you can ultimately clear your debt sooner and set up a savings nest egg.
Tip: if you use a balance transfer, plan your payoff so you clear the balance before any promotional rate expires.
11. Ensure Your Savings Are Protected
If you’re saving for the future, you will naturally want the maximum possible protection for your funds.
When choosing a new savings account, you should check that the institution you’re considering is covered by the FDIC scheme. Under this government initiative, your savings are protected by up to $250,000 if the institution fails.
If you’re saving with a credit union, the National Credit Union Administration can also insure your funds up to $250,000 per person.
More specifically: FDIC deposit insurance covers up to $250,000 per depositor, per insured bank, per ownership category.
For credit unions, NCUA share insurance provides similar coverage up to $250,000.
12. Budget for (Occasional) Treats
Despite the obvious lifestyle and psychological benefits of being financially fit, it's important to strike a balance when saving money.
As such, you should make room for occasional treats in your budget. Something as simple as a trip to your favorite restaurant can provide a psychological boost after you’ve worked hard to save money and cut costs.
Remember, the aim is for saving to become a good habit that you build into your everyday life, rather than a painful chore.
The trick is to plan treats on purpose: add a small “fun” line item so you don’t rebound-spend after a strict month.
Your Next Two Steps
Current economic conditions are, of course, making it tough for many of us to put money aside. While these conditions may continue in the short and medium term, following the tips above could help you to benefit as much as possible from any money you can save each month.
Although saving money may be difficult at first, your efforts will soon feel worthwhile as your balance starts to climb and you begin to reach your goal.
If you want a simple starting plan: pick two changes today (one “rate upgrade,” one “spending leak fix”), then automate your savings transfer tomorrow. Small wins stack into big ones.
Frequently Asked Questions
1. How much should I save each month?
Use a goal-based target: Goal ÷ months = monthly savings. If it’s too high, start smaller and increase gradually.
2. What should I look for in a high-yield savings account?
Compare APY (promo or not), fees/minimums, transfer speed to checking, and FDIC/NCUA insurance.
3. How big should my emergency fund be in 2026?
Aim for 3 months of expenses if possible. Starting from zero, $500–$1,000 can prevent surprise bills from becoming debt.
4. Are online/app-based savings accounts safe?
They can be, but confirm who holds your deposits and that they’re FDIC-insured (banks) or NCUA-insured (credit unions).