7 Ideas for How to Grow Your Savings by the End of the Year

Achieving financial freedom is a journey that requires planning and hard work, with both long-term and short-term goals. With the end of the year coming fast, it's a good time to check in and assess how you can improve your financial well-being before the new year arrives. Whether or not you achieved all your goals from the previous year, there's still time to dedicate yourself to growth. In this post, we'll highlight some strategies for giving your finances a boost, so you can get excited about your progress ahead of 2025.

Trying to Increase Your Savings Before the New Year?

You may be wondering how to start growing your savings now, so you can go into the new year strong. It's a great idea to take strides toward securing your financial future, and there are many ways to get started today. Here are some of the best approaches to giving your wealth a head start.

1. Set Short-Term Financial Goals

The first step to take is to understand how much you're aiming to save and by when. By defining specific objectives within a set period of time, like the end of the year, you can monitor your progress effectively. For example, you might want to add $1,000 to your emergency fund by January 1st. Then, there's no ambiguity in what you're trying to accomplish and you'll feel motivated to check it off your list by the end of the year.

2. Cut Unnecessary Expenses and Reduce Spending

Identifying and cutting unnecessary expenses will be essential in reaching your goals. Start by looking at your bank statements, credit card bills, and cash transactions. This will help you find places where you might be spending an excessive amount of money. You might also find that you have ongoing subscriptions or services you can cancel before the new year. As a result, you can increase the amount you're putting toward savings.

Monitoring your expenses, tracking your progress toward your goals, and celebrating small victories along the way can help you stay committed to your financial objectives.

3. Explore Savings Accounts that Boost Growth

When it comes to saving more money quicker, the type of savings account you choose will play a large role in your savings goal progress. Choosing one that aligns with your goals and timeline can be a game-changer. If you want to make your money work harder, high-yield savings accounts can be especially helpful. HYSAs usually have a considerably higher annual percentage yield (APY) than traditional savings accounts, so your savings grow faster through compound interest.

If you're starting with a larger savings balance, a tiered dividends option might be the best savings account option for your needs. That's because the more money you deposit, the higher your return. By earning from these high interest rates, you not only establish greater financial health now but will reap the benefits long term.

4. Consider Opening a Certificate Account

If you're looking for higher interest rates, a certificate account might be better suited to you. This is especially true if you don't see yourself needing to withdraw funds immediately. Certificate accounts help you earn much more over a longer amount of time with a high APY. If you open an account now, you can continuously monitor and feel good about your progress throughout the certificate term. You can also explore options with more flexible withdrawals, depending on the size of your deposit.

Before you decide to open an account, check the terms and conditions carefully. Look at the maturity date and any early withdrawal penalties that may apply. It is important to choose a term that fits your financial goals and doesn't lead to extra fees.

5. Earn More from Your Checking Account

Ready to start optimizing your daily transactions so you can save more? High-interest checking accounts allow your money to grow, even when it's not in your savings account. When selecting a high-interest checking account, be mindful of any associated fees or requirements such as minimum balances or monthly transaction limits. By managing your cash transactions strategically through a higher interest rate, you can start earning more now.

6. Leverage Cash Back Rewards

Another effective way to save money is by taking advantage of credit cards with cash back rewards. These programs enable you to earn money back on your everyday purchases, especially if you're busy holiday shopping. Then, you can set up automatic transfers of your cash back rewards into a dedicated savings account. This strategy ensures that the money you earn from these rewards contributes to your growth.

7. Automate Savings to Build Consistency

To avoid worrying about the number of times you're contributing to your savings, it's smart to automate your savings before the beginning of the calendar year. You can set regular transfers from your checking account to your favorite savings account, like your regular savings account, a high-yield savings account, or an investment account. Try to line up these transfers with your payday, so you're effortlessly adding money to your savings consistently. Taking this small action now can set you up with stronger New Year savings.

Prepare for the New Year with Leaders

As you go into the new year with knowledge of how to grow your savings, you'll want to work with a financial institution that can help you achieve your savings goals. With Leaders Credit Union, you can enjoy a wide range of member benefits, with accounts and services designed to take you further. We offer high-interest savings account options that go beyond the national average rate, so you can take your money to new heights.

If you're new to saving and interested in learning even more, check out our free guide: A Beginner's Guide to Establishing Savings. This is a useful starting point to get familiar with smart savings strategies, so you can set money aside more effectively. We look forward to helping you experience more growth in the new year and for many more to come.

Leaders Credit Union is federally insured by the NCUA.