Didn't Increase Your Savings in 2023? Here's How to Do Better in 2024

Each year, many people pledge to boost their savings. But if you didn't manage to meet that goal in 2023, you're no doubt in good company.

Last year, inflation continued to surge, driving living costs upward and making it difficult for a lot of folks to carve out funds for savings. This year, inflation is still elevated. March's Consumer Price Index, which measures changes in the cost of consumer goods and services, rose 3.5% on a year-over-year basis, which indicates that it's still more expensive to function. 

The problem with not increasing your savings at a time like this, however, is twofold. First, if you don't have an adequate emergency fund, you risk landing in debt if unplanned bills land in your lap or if you end up laid off and out of work for a period of time.

Secondly, savings accounts are paying generously these days following multiple interest rate hikes from the Federal Reserve. But the Fed is expected to cut rates later this year, so your window for earning a higher amount of interest on your money may be dwindling. 

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That's why it's so important to do what you can to increase your savings now. Here are a couple of tactics that could leave you with more cash reserves by the end of 2024. 

1. Do a spending audit

A lot of people will tell you that if you want to boost your savings, you'll need to cut your spending. That's not bad advice by any means, but it's tough advice to apply. A more reasonable approach may be to simply start with a spending audit, where you take a look at the various expenses you're paying for and make sure each one of them is worth it.

To do this, just pull up bank account and credit card statements from the past six to 12 months so you can see where your money has been going. Chances are, you'll be able to identify at least one area where you can either cut back or stop spending altogether without negatively impacting your life. 

For example, maybe you forgot you were paying for Disney+ and can't remember the last time anyone in your household actually watched its content. Canceling it could be an easy way to pump a little more money into your savings. 

2. Find a side hustle that pays off

Working a side hustle is a great way to boost your income -- that is, if you manage to find a gig that pays well and pays consistently. NetCredit says that freelance website designers make an average of about $162 an hour. If you have the skills to do that sort of work, you may be in a great spot to boost your income -- and savings -- significantly.

But if you don't have the skills needed to pull off a side gig with an hourly rate of over $100, don't sweat it. There are plenty of moderate-paying gigs you can find, too. However, you may want to favor a gig with a preset compensation rate that works for you instead of a rate that's dependent on the generosity of other people.

Folks who drive for ride-hailing services or deliver groceries often wind up dependent on tips to make a decent hourly wage. If you have a specific savings goal you're working toward, you may be better off finding a side hustle with a guaranteed hourly wage. For example, if you're able to work 12 hours a week on top of your main job and have the goal of earning $150 a week for savings purposes, then you may want to limit yourself to gigs that pay at least $12.50 an hour from the get-go. 

At a time when basic living costs are still so expensive, it's not easy to drum up extra funds for savings. But you really don't want to miss out on the chance to benefit from today's higher interest rates if you can help it. Do what you can to filter more money into your bank account, whether by cutting out spending that isn't useful to you, working a side hustle, or both.