Money Read Time: 10 min

Money-Saving Tips to Build Wealth

In today’s discourse about how to build wealth, a common refrain often emerges: It’s not possible nowadays. With rising housing costs and inflation affecting everything from utility bills to daily essentials, setting aside extra savings may seem out of reach.

While economic headwinds may create obstacles, building wealth is still possible through intentional planning and consistent action. The path forward involves focusing on controllable factors and leveraging tools and money-saving strategies to create positive momentum.

The Role of Goal Setting in Your Wealth-Building Journey

If you don’t know where you’re going, your path forward will be unclear and uncertain. Establishing clear financial goals is the key to transforming the vague desire to save money into something concrete and actionable. When you define your vision for the future, it gives your efforts direction and purpose.

Short-Term Goals

Short-term goals are those you could feasibly reach within a few months to a couple of years. Smaller milestones can keep you motivated and show you that progress is possible. These could include:

Saving for a car
Building an emergency fund
Setting aside money for a weekend getaway

Short-term goals work best when they’re specific and tied to a timeline. For example, instead of saying, “I want to save money for emergencies,” try, “I’ll save $600 in six months by setting aside $100 per month.”

Long-Term Goals

Long-term goals are the bigger aspirations that take years—sometimes decades—to pursue. These are the goals that shape your future and require planning, patience, consistency, and a clear vision. Examples of long-term goals include:

Saving for a down payment on a house
Planning for your child’s college education
Building a retirement fund

The key to pursuing long-term goals is starting early and contributing consistently, even if those contributions are small. While long-term goals may feel far off, working toward them now builds healthy financial habits that can put you on the path to the life you want.

Strategies for Growing Your Money

While setting money aside represents a vital first step, simply saving your money might not be a sufficient strategy to help you reach your goals. Growing your savings through the use of appropriate investment strategies can help combat the impact of inflation and bolster your efforts.

Short-Term Growth Strategies

For funds you might need access to in the short term, consider options that prioritize liquidity and low risk, while potentially offering modest returns. These options may include:

High-yield savings accounts: These accounts offer better interest rates than traditional savings accounts, helping your money grow while remaining easily accessible.
Certificates of deposit (CDs): CDs offer a fixed interest rate for a specified term, often ranging from a few months to a few years. While funds are tied up for the term, shorter durations are available.

Long-Term Growth Strategies

Funds earmarked for longer-term goals often benefit from investment strategies focused on growth over time. Long-term investment options may include:

Stocks, mutual funds, and ETFs: These vehicles offer opportunities for market participation and potential long-term growth. While they carry higher risk, diversifying your portfolio across asset classes can help manage risk while pursuing higher returns.
Tax-advantaged accounts: Options such as Roth IRAs, 401(k)s, and 529 plans are designed to grow your savings efficiently. These accounts provide tax benefits tailored to specific objectives, like retirement or education funding.

Note: Before investing in ETFs and mutual funds, carefully consider a fund’s investment objectives, risks, charges and expenses. Fund prospectuses contain this and other information and may be obtained by asking your financial professional. Read prospectuses carefully before investing.

Navigating investments can be complex. We can help you create a strategy tailored to your goals, risk tolerance, and timeline. We can also work with you to adjust that strategy as your needs and circumstances evolve.

Get Help Saving: Tools, Tips, and Strategies

Saving money doesn’t have to be overwhelming or time-consuming. With the right tools and a few intentional changes to your habits, you can make saving easier, less intimidating, and even automatic.

Automate Your Contributions

Consider automating deposits. Automating regular contributions to your savings or investment accounts helps you build funds consistently, removing the need for manual transfers and eliminating the risk of forgetting to save. Most banks offer automatic recurring transfers or automatic deductions from direct deposit paychecks, making it easier to save consistently.

Leverage Tools to Simplify Saving

Many digital tools and banking features can help you automate savings, track progress, and maintain momentum toward your financial objectives. For instance, some programs can round up your purchases and deposit the difference into a savings account.

Practical Money-Saving Tips to Shift from Spending to Saving

Small adjustments to your daily habits can make a big difference. Here are some actionable strategies to help you save:

Cancel unused subscriptions: Review your monthly subscriptions and identify any you’re no longer using. Cancel them and redirect that money into your savings or investment accounts.
Commit to one non-essential cutback: Pick one expense to forgo each month—like skipping daily coffee runs, a streaming service, or impulse buys. Deposit the money you would have spent into savings or investments instead.
Cook at home: Dining out or using delivery services can quickly add up. Try to plan and prepare most of your meals at home, and save the money you’d normally spend at restaurants.
Set weekly money-saving challenges: Challenge yourself to save a specific amount each week, even if it’s only $5 or $10. By the end of the year, those small amounts can grow into a meaningful sum.

Consistency is key. Every small step you take reinforces your saving habits, builds momentum, and takes you closer to your goals.

Saving Is Possible—and Worth It

In today’s economy, saving money may feel like a monumental challenge, but with discipline, clear goals, helpful tools, and guidance, it’s possible. By implementing these money-saving strategies and focusing on what you can control—your goals and habits—you can create momentum and gain confidence for your financial future.

If you still feel uncertain or overwhelmed, remember: You don’t have to navigate this journey alone. Your financial professional can help you create a personalized savings and investment strategy tailored to your unique situation and goals. Contact the office today to learn more.

^{This material was developed and prepared by a third party for use by your Registered Representative. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. The content is developed from sources believed to be providing accurate information.}

^{Investors should consider the investment objectives, risks, charges and expenses associated with municipal fund securities before investing. This information is found in the issuer's official statement and should be read carefully before investing.}

^{Investors should also consider whether the investor’s or beneficiary’s home state offers any state tax or other benefits available only from that state’s 529 Plan. Any state-based benefit should be one of many appropriately weighted factors in making an investment decision. Consult a financial or tax advisor before investing in any state's 529 Plan.}

^{A diversified portfolio does not assure a profit or protect against loss in a declining market.}