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Do you want to make the most of your savings, but aren’t sure where to start?
You’re not alone! From boosting your emergency fund to building a retirement nest egg, it can be hard to know how best to use your money.
But if you want to save more and have money for your future goals, there are some simple tactics that can help.
We’ll look at 15 surprising ways people make the most of their savings so you can empower yourself with the knowledge needed for financial success!
#1. Help Support Extended Family
Supporting family members financially can be a great way to help the people you care about while still making the most of your savings.
Whether it’s contributing to their college education or helping them out when they hit a rough patch, donating money can make a big difference in someone’s life.
#2. Renovate The Home
A home renovation project can be a great way to add value to your property and is often more cost-effective than buying a new one.
Upgrading the kitchen or bathroom, adding an extra bedroom, or even replacing outdated fixtures with modern ones are all ways to make your house look better while also boosting its resale value.
#3. Tackling Major Expenses Like Rent and Medical Debt
While some people live a frugal lifestyle by choice, many are forced to live a frugal lifestyle because they aren’t generating enough income.
As a result, a host of people are spending considerably less on wants and desires to afford things like their rent, car payments, medical debt from necessary doctor’s visits or surgeries, and more.
#4. Build a Cash Cushion
While not glamorous, building up a savings account for emergencies is smart.
Having a rainy day fund is the foundation of good financial habits that can help you to keep moving forward, even when life throws you a curveball.
#5. Getting Ahead of Debt
As I discussed above, many people are frugal because they have no other option besides being so.
However, some are deciding to be frugal to improve their financial situation, even if it wasn’t that bad initially.
One way they do this is by getting ahead of debt.
For example, those saddled with student loans or a considerably large mortgage might pay more than they owe each month to chip away at their debts faster.
This ensures that they’re not falling behind and allows them to know that they’ll be able to stash away more money later (especially with those pesky interest fees).
#6. Seeing Concerts
Another popular activity that people will do with their money when they’ve saved up enough is seeing a concert.
Concerts aren’t as cheap as they used to be, which has only worsened with inflation, scalpers, and ticket services that manage to snatch up tickets long before fans can.
As such, seeing your favorite artist isn’t always the easiest thing to do.
Those who now have the extra cash will start saving once they see the tour dates, make sure they have enough for additional expenses like merch or accommodations and enjoy their favorite artist guilt-free after they’ve managed to squeeze it into their budgets.
#7. Doing Good with Available Resources
Every dollar matters when contributing to a cause, but plenty feel like $5 or $10 may not be enough.
There are also those who would like to get more hands-on when helping their fellow man.
Some people responded that they save their money to do more good in their community, spending cash on things like clothing or food products that they can then give to nearby organizations or even hand out themselves to those in need.
When you have a little extra cushion in your budget, it can be nice to brighten up the world around you.
#8. Saving for a Child
What’s more expensive than a car or a home?
Little bundles of joy can be expensive, and many preparing to become parents are learning how to be frugal to prepare for what lies ahead.
Some are just putting money away and cutting expenses where they can afford life as new parents, while others are going the extra mile because one of the parents will be staying at home and caring for the child.
#9. Hoping to Retire Early
Investing with the hopes of retiring on time is a great goal.
But some people aren’t satisfied with working so long, only being able to enjoy a few decades of their life without work.
This is why some people are frugal and focused on an early retirement.
An early retirement takes a lot more cash and careful planning to pull it off.
But if you can pinch your pennies and plan for every possible scenario, it’s more than possible for some people.
#10. A New Bed
Sleep is critical; the more and better you get, the more alert you will be the next day.
Plus, you will have more willpower to be productive rather than be unmotivated.
In order to get good sleep, you have to invest in a quality mattress, which is why some people find ways to slash expenses.
They understand the importance of a good night’s sleep and want to ensure they have the best mattress to help them achieve this goal.
Investing is something that is often talked about but rarely prioritized.
What happens is that people will get right to the finish line, that is, retirement, only to realize that they don’t have nearly enough money to live comfortably throughout their golden years.
Those who live frugally are focusing on investing now to rest assured they’ll have plenty saved by the time they decide to settle down.
Now’s the time to squeeze investing into your budget, even if you can only commit to a certain amount each month.
Your future self will thank you when you think about retirement now!
#12. Being More Generous with Friends
Many people wish they could do more for their inner circle but don’t have the money to make it happen.
Some who live more frugal lifestyles save with the intent of doing more for the people around them, whether that means going places with them, paying for dinner occasionally, or buying them a nice gift when they’re feeling down.
#13. Sports Car
Who said that frugal people can’t blow their money?
One frugal person spent wisely so he could one day buy his dream car, a Porsche.
The sacrifices he made were worth it as the car brought him more joy than spending money on other, non-trivial things.
Saving more money by cutting things out of your budget or buying cheap means having more money to do the things you want, especially when they’re generally expensive.
Many frugal people will take the money they’ve saved and use it for travel (which can also be quite frugal, with the proper planning).
Whether it’s another state in the U.S. or a trip to a country abroad, this might be something worth considering if you tend to be a very frugal person.
#15. Buying Self-Care Products or Experiences
Being frugal means working hard to make as much money as possible while storing as much away to be more financially secure.
But for anyone, that can become quite tiring.
Being able to splurge on yourself every once in a while is something you should do if you’re very diligent about working hard and saving.
Some spend their hard-earned money on self-care products, including a special treat or meal, skincare products like bath bombs or luxurious lotions, or even a good book or movie.
Others like to save up a little more and go for experiences instead, pampering themselves with a massage or taking a trip to the spa.
Slash Your Monthly Bills
With inflation rising, your monthly bills are likely getting out of control. Luckily, there are some simple steps you can take. Use this guide to help you save up to $7,000 a year on your monthly bills.
How to Get Out of Debt
If being in debt wasn’t bad enough, trying to dig yourself is worse.
Combine the setbacks you face and the time it takes, it’s no wonder many people feel trapped.
But there is hope.
Here is how to get yourself out of debt once and for all.
Learn How To Save $100K
Saving money can be hard, especially if you are looking to have $100K in the bank.
But while it feels difficult, don’t let this stop you. Here is how you can save $100,000 in nine steps.
Fun Money Saving Challenges
Do you find it boring to save money?
If you are motivation by turning things into a game, check out these money saving challenges. There is a game for you that will make saving fun and exciting so that you make it a priority to save money.
Free Budget Templates
It can be difficult to start budgeting from scratch.
While there are apps out there, some people like their privacy. This is where a spreadsheet budget comes into place.
But who wants to build one? Luckily there are some great free budget templates to use.
Here are the best ones.
This thread inspired this article.
I have over 15 years experience in the financial services industry and 20 years investing in the stock market. I have both my undergrad and graduate degrees in Finance, and am FINRA Series 65 licensed and have a Certificate in Financial Planning.
Visit my About Me page to learn more about me and why I am your trusted personal finance expert.