Saving money is a habit that pays dividends for the rest of your life — but with rising living costs, finding ways to grow your savings in the current economic environment requires both discipline and strategy. Here are five proven methods to make your money work harder in 2024.
1. Switch to a High-Yield Savings Account
Traditional savings accounts at many big banks still offer near-zero interest rates, even as central banks have raised their benchmark rates significantly. High-yield savings accounts, like those offered at Liberty Crest Finance, are currently paying between 4% and 5.25% APY — that is 10 to 15 times more than a standard account.
The switch takes minutes and your money remains FDIC insured up to $250,000. There is no reason to leave significant savings in a low-yield account.
2. Automate Your Savings
Automation removes the temptation to spend money before saving it. Set up a recurring transfer on your payday so that a fixed percentage moves directly to your savings account before you ever see it in your current account. Most financial advisors recommend saving at least 20% of your net income using the 50/30/20 rule:
- 50% for needs (rent, utilities, groceries)
- 30% for wants (dining, entertainment, travel)
- 20% for savings and debt repayment
3. Open a Certificate of Deposit (CD)
If you have money you will not need for 6–24 months, a CD locks in a fixed rate for that period. Current CD rates at Liberty Crest Finance range from 4.5% to 5.5% depending on the term. Unlike market-linked investments, CDs carry zero risk to your principal, making them ideal for short-to-medium term goals like a house deposit or a car purchase.
Ladder your CDs across different maturity dates — 6, 12, 18, and 24 months — so you always have funds becoming available rather than locking everything into one long term.
4. Eliminate High-Interest Debt First
If you are carrying credit card debt at 20%+ APR, no savings account can outperform the guaranteed return of paying off that debt. Every dollar you put toward high-interest debt is an effective 20% return. Once high-interest debt is cleared, redirect that payment amount into savings immediately.
5. Build an Emergency Fund Before Investing
Many people skip directly to investing before establishing an emergency fund — and end up forced to sell investments at a loss when unexpected expenses arise. Aim to save 3–6 months of living expenses in a liquid, accessible savings account before committing money to longer-term investments or retirement accounts.
Bonus: Review Subscriptions and Recurring Expenses
The average household pays for 3–4 streaming services they rarely use. A quarterly review of all recurring charges — subscriptions, memberships, insurance, and utility plans — often reveals $100–$300 per month that can be redirected into savings. Small changes compound into large results over time.
Start Today
The best time to start saving was yesterday. The second best time is today. Open a Liberty Crest Finance savings account in minutes and take advantage of our current high-yield rate. Our financial advisors are available to help you create a personalised savings plan aligned with your goals.
