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New year, new financial you - Part 1: save money

Learn how to save money by cutting expenses, optimizing for cash back savings and maximizing your earnings
Beami Team
12 min to read

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2022 is in the books, and with a new year comes new goals and resolutions. While physical health is a top priority for 2023, financial health is also very top of mind for many.

According to a recent Bank of America survey, 80% of Americans have set financial goals for the new year. Their top 5 goals are:

  1. Increase savings (44%)
  2. Pay off credit card debt (31%)
  3. Build an emergency fund (30%)
  4. Save to travel or take a vacation (28%)
  5. Save for retirement (21%)

It’s no surprise that saving money and paying off debt are key priorities. Rising inflation, costs and interest rates have caused many to think about saving more, and spending less for the foreseeable future.

In this article, we’ll share tips and tools to help you save money. In the next article, we’ll share ways to pay off debt. With some time, discipline and learning what works best for you, you can set yourself up for financial success this year!

Start by making a plan

Americans’ top 2023 financial goals are to increase savings, or save for something specific, like an emergency fund, large purchase or retirement. There are many ways to achieve these goals. Let’s get started!

Take stock of your current financial situation

First, you’ll need to take stock of your current financial situation. What is your monthly spend? Are there opportunities to cut back and redirect those funds towards your savings goals? Are there opportunities to increase your income and accelerate the amount you can save?

To help you answer these questions, you can link your financial accounts to budgeting apps like Mint, NerdWallet or Copilot Money to track your expenses, see your net worth, your total debt (if any), and track your credit score.

Mint is one of the most popular personal finance apps out there, and NerdWallet recently launched its personal finance app. Both are free to use. Copilot Money is a new app that promises a better app experience and more intuitive design, offering smoother integrations and easier to re-categorize transactions. The service costs $2.99 per month.

If you’re not ready to download an app or link your financial accounts just yet, you can download Beami’s spend tracker to track your expenses manually.

Set your savings goal(s)

Once you have an understanding of your current financial picture, it’s important to create savings goals that are S.M.A.R.T.: specific, measurable, achievable, relevant and time-bound. Does it sound similar to how you set goals at work? Your personal goals are as important as, if not more important than work goals, and they should be measured as such.

To start, what are you saving for? What is your savings goal, and what is your timeline to achieve it? From there, how can you break your goal down into smaller, actionable steps?

To keep track of progress towards your goals, you can again use apps like Mint, NerdWallet and Copilot Money, or use Beami’s savings goals tracker to track them manually.

If you’re saving for a large purchase, like a trip or new piece of furniture, you can use a savings app like Reel to track these separately. If you need to make a purchase now but still wish to pay for it over time, there is an option to use a buy-now-pay-later service. As with any financial product, it’s important to understand how it works and the fees (if any) involved - we’ve outlined all you need to know about buy-now-pay-later here.

Ways to save money to apply towards your savings goals

Now that you know your financial situation, and you’ve defined your financial goals for the new year, below are some easy ways to start saving today. 

Cut back on expenses

The easiest way to save money is to look to see where you can cut back on expenses. Subscriptions, recurring bills and and credit card fees are a few key places to look first.

Cancel subscriptions you don't use

Subscription services generally offer a free promotional period for you to try their product. If you aren’t using a subscription enough to justify the cost, it may be worth canceling altogether. Services like TRIM, ScribeUp and Rocket Money can help you find all of your subscriptions and cancel them.

TRIM and ScribeUp offer this service for free. ScribeUp is a new service that also lets you sign up for risk free trials, and will block free trial charges unless you wish to continue on with the subscription. Rocket Money is a popular app that can find and cancel your subscriptions, for a flat fee of $3-12 per month. For an all-in-one option, Rocket Money includes budgeting and savings features.

Negotiate lower bills

Many service providers, like cable, phone and internet providers, offer deals to sign up for their service. To save more money, look for new deals, renegotiate with your current provider or switch to a new one.

If this is a hassle, there are services that can help, but it comes at a cost. Both BillTrim and Rocket Money offer services to help you negotiate lower bills. BillTrim charges 15% of total first year savings, and Rocket Money takes up to 30-60% of the savings. You’ll need to decide whether it’s worth it to negotiate bills on your own, or to spend the money for a service to do so on your behalf.

Lastly, if you rent, consider negotiating your rent payment at the end of your lease term. Research the going rate for rentals near you, and present your case to your landlord. Many times, it can be easier for them to continue your lease than to have the place sit empty.

Reevaluate your credit cards

As the Fed continues to increase the benchmark fed funds rate to combat inflation, interest rates on credit cards and other lending products will also continue to rise. If you’re not paying off your credit card balance each statement cycle, it could be worth considering a new card that offers 0% APR on purchases and/or balance transfers.

A few points to note: if you opt for a balance transfer, be sure to read the fine print. Most banks charge 3-5% of the balance transfer amount. Also, once the promotional period nears the end, be sure to reevaluate which card works best for you - rates will continue to change over time, and so could your financial situation.

We’ve done some of the heavy lifting and recommend a few of our favorites below:

If you have excellent/good credit (~690 FICO score or higher):

1. Wells Fargo Reflect® Credit Card

  • 0% APR on purchases and qualifying balance transfers for up to 21 months (17.24% to 29.24% variable APR thereafter)
  • Balance transfer fee: 3% of transfer amount for transfers made within first 120 days; 5% thereafter ($5 minimum)
  • No annual fee

2. BankAmericard® Credit Card

  • 0% APR on purchases for 21 months on purchases, and on qualifying balance transfers for 60 days (16.24% to 26.24% variable APR thereafter)
  • Balance transfer fee: 3% of transfer amount ($10 minimum)
  • No annual fee

3. Chase Slate Edge Credit Card

  • 0% APR for 18 months on purchases and qualifying balance transfers (19.24% to 27.99% variable APR thereafter)
  • You will automatically be considered for a 2% APR reduction when you pay on time and spend at least $1,000 on your card by your next account anniversary
  • Balance transfer fee: 3% of transfer amount ($5 minimum)
  • $0 My Chase Plan fees during the introductory period
  • No annual fee

If you have fair credit (~630 FICO score or higher):

Discover It Balance Transfer Card

  • 0% APR for 15 months on purchases and qualifying balance transfers (16.24% to 27.24% variable APR thereafter)
  • Balance transfer fee: 3% of transfer amount for each transfer posted to account by 4/10/23; 5% thereafter
  • No annual fee
  • Plus, earn 5% back on select quarterly categories and 1% back on everything else. Discover will match the cash back rewards you’ve earned on your credit card for the first 12 consecutive billing cycles.

If you’re taking a break from credit cards:

Acorns Checking Visa™ Debit Card

  • Real-Time Round-Ups®: instantly invest your spare changeSmart Deposits: Invest a piece of every paycheck automatically into all your Acorns accounts.
  • Emergency Fund: save a piece of each paycheck automatically
  • Earn bonus investments from top brands 
  • $3 to $5 per month for a personal or family plan
  • No hidden fees, minimum balance fees or overdraft fees.

Deciding which product is right for you can be overwhelming. Beami can help by conducting a free custom spend analysis, and recommending the best products based on your goals. When you’re ready, feel free to learn more or get started by completing a short survey and linking your accounts (or, uploading a spreadsheet with your transaction information). We never collect your personal information or share it with anyone. Your private information is yours.

Maximize your savings while you shop

Another easy way to save money is by making your money go further while you shop. Look for discounts, rewards and cash back, either from tools and apps or from your credit card.

Use coupons, discounts, cash back and loyalty to your advantage

Many apps and browser extensions make it easy for you to save while you shop.

Ibotta, Fluz and Rakuten are all great cash back apps for both in-store and online shopping, at major brands and grocery stores. You can withdraw your cash back earnings directly to your bank account.

The Capital One Shopping browser extension looks for discounts and coupon codes on your behalf, and rewards you for your online shopping. Note: you don’t have to be a Capital One cardholder to use the service. Honey, now owned by PayPal, is another browser extension that offers daily deals, coupons and cash back. It is best known for searching for and applying automatic coupon codes at checkout. If you’re looking to earn Bitcoin without risking your savings, you can try Lolli, which offers both Bitcoin and cash back rewards.

If you rent your place, you can earn points for paying rent through BILT. You can automatically earn points if you live in a BILT Alliance property. If not, you can apply for the BILT MasterCard and earn points on rent at any home without a transaction fee—even when paying through an online portal, PayPal, Venmo, or check. You can redeem your points for travel, shopping, fitness classes at Soul Cycle, Rumble and more.

Get the most cash back from your credit cards

If used responsibly, cash back credit cards can be a great way to save money while you shop, as long as you’re able to pay off the balance each statement cycle. You can earn cash back via a statement credit, and for some, transfer your cash back amount directly to your bank account.

Below are the cash back credit cards that offer you the most value:

If you have excellent/good credit (~690 FICO score or higher):

1. SoFi Credit Card

  • Earn 3% cash back the first year when you open a deposit account and deposit $200; earn 2% cash back thereafter
  • 17.24% to 29.24% variable purchase APR
  • No annual fee

2. Citi® Double Cash Card

  • Earn 2% cash back: 1% back when you buy and 1% back when you pay
  • 18.24% to 28.24% variable purchase APR
  • 0% APR for 18 months on qualifying balance transfers (18.24% to 28.24% variable APR thereafter)
  • Balance transfer fee: 3% of transfer amount for transfers made within first 120 days; 5% thereafter ($5 minimum)
  • No annual fee

3. Chase Freedom Unlimited® Credit Card

  • Earn 5% back on travel purchased through Chase Ultimate Rewards., 3% back on dining (including takeout and eligible delivery services), 3% back on drugstore purchases, and 1.5% back on all other purchases
  • Earn a $200 bonus after you spend $500 on purchases in the first 3 months from account opening. Plus, earn 5% back on grocery store purchases (excluding Target®  and Walmart® on up to $12,000 spent in the first year ($600 cash back)
  • 0% APR for 15 months on purchases and qualifying balance transfers (18.74% to 27.99% variable APR thereafter)
  • No annual fee

If you have fair credit (~630 FICO score or higher):

1. Upgrade Visa® Card with Cash Back Rewards

  • Earn 1.5% back on payments
  • Get $200 when you open a Rewards Checking account and make 3 debit card transactions
  • 14.99% to 29.99% variable purchase APR
  • No annual fee

2. Discover It Cash Back Card

  • 0% APR for 15 months on purchases and qualifying balance transfers (16.24% to 27.24% variable APR thereafter)
  • Balance transfer fee: 3% of transfer amount for each transfer posted to account by 4/10/23; 5% thereafter
  • No annual fee
  • Plus, earn 5% back on select quarterly categories and 1% back on everything else. Discover will match the cash back rewards you’ve earned on your credit card for the first 12 consecutive billing cycles

Consider cash back store cards where you shop the most often

Like credit cards, if store cards are used responsibly and paid off at the end of each billing cycle, they can offer some of the greatest cash back rewards, especially if you shop a lot at a big box store like Target, Amazon or Walmart. You can also opt for debit or reloadable card options that offer rewards, but at a lower earnings rate.

Target:

1. Target MasterCard (fair credit required)

  • Save 5% at Target stores and Target.com, earn 2% back on dining and gas purchases, and 1% everywhere else outside of Target
  • Purchase APR is prime rate plus a margin of 19.65%
  • No annual fee

2. Target Credit Card (fair credit required)

  • Save 5% at Target stores and Target.com
  • Purchase APR is prime rate plus a margin of 19.65%
  • No annual fee

3. Target RedCard Debit Card and Target RedCard Reloadable Account

Amazon:

1. Amazon Prime Rewards Visa Signature Card (good credit required)

  • Earn 5% back at Amazon and Whole Foods, 2% back at drugstores, restaurants and gas stations, 1% everywhere else. Plus, earn 10% back on select quarterly categories.
  • 0% APR for 6 to 18 months on orders $50+
  • $150 gift card upon approval
  • Prime membership required ($139 per year or $69 per year for students)
  • 17.99% to 25.99% variable purchase APR
  • No annual fee

2. Amazon Rewards Visa Signature Card (good credit required)

  • Earn 2% back at drugstores, restaurants and gas stations, 1% everywhere else.
  • 0% APR for 6 to 18 months on orders $50+
  • $150 gift card upon approval
  • 17.99% to 25.99% variable purchase APR
  • No annual fee

3. Amazon Prime Store Card (fair credit required)

  • Earn 5% back at Amazon plus an extra 5-15% back on rotating items throughout the year
  • 0% APR for 6 to 24 months on select orders $50+
  • 29.74% variable purchase APR
  • No annual fee
Walmart:

1. Capital One® Walmart Rewards® Card (fair credit required)

  • Earn 5% cash back at Walmart.com, and 5% cash back at Walmart stores for the first 12 months using Walmart Pay
  • Earn 2% cash back at Walmart stores, 1% back everywhere else
  • 17.99% or 27.74% variable purchase APR
  • No annual fee

2. Walmart Rewards® Card (fair credit required)

  • Earn 5% cash back at Walmart.com, and 5% cash back at Walmart stores for the first 12 months using Walmart Pay
  • 27.74% variable purchase APR
  • No annual fee

3. Walmart MoneyCard® Debit Card

  • Earn 3% cash back at Walmart.com, 2% cash back at Walmart fuel stations, and 1% cash back at Walmart stores, up to $75 each year
  • Waive your monthly fee when you direct deposit $500+ in previous monthly period. Otherwise, $5.94 a month.

Again, Beami can help you choose the best financial products based on your goals. Learn more or get started by completing a short survey and securely linking your accounts, or uploading a spreadsheet with your transaction information.

Maximize earnings

Last but certainly not least, it’s important to make sure you funnel your savings into vehicles that will make even more money for you.

Open a retirement and trading account

You can set up a retirement and stock investment account through companies like Fidelity, Schwab and eTrade. They all offer $0 account minimums and $0 trades. With Fidelity, you can currently get $100 when you deposit at least $50 into your account.

If you dabble in crypto, check out Robinhood and WeBull. You can trade crypto, stocks, and also set up a retirement account. They also offer $0 account minimums and $0 trades. With Robinhood you can get 1 free stock (from $5 to $20) after linking your bank account. With WeBull, you can get up to 12 fractional stocks after signing up.

Earn interest on your money in a high yield savings account

High yield savings accounts (HYSA’s) are a great way to automate savings towards specific goals. PNC Bank's current HYSA rate is 4% APY, with no minimums and no monthly service charges. SoFi’s current HYSA rate is 3.75% APY, and they’re offering a new account bonus of up to $250, depending on your deposit amount. Synchrony Bank’s HYSA rate is also 3.75% APY.

Earn even more interest in a short term CD

Short term CD’s, usually 1 year in length, are also a great way to earn more money on your money if you don’t need to keep your funds liquid. Synchrony Bank’s 1-year CD is currently 4.6% APY with no minimum deposit. Marcus by Goldman Sachs’ 1-year CD is currently 4.3% APY with a $500 minimum deposit.

Conclusion

While you may not be able to control the macroeconomic conditions happening all around, you can take meaningful towards your savings goals by implementing what works best for you. We’re rooting for you, and wish you the best on your financial journey!

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