4 Strategies to Grow Your Money

Saving money is like growing a garden. It takes planning and a clear goal to see your efforts blossom. But just as gardeners can lose motivation when they don’t see quick progress or the fruits of their labor, it can also feel discouraging when saving. If you're finding it difficult to save or want to refocus on your savings goals, here are four ways you can grow your money and keep your motivation high. 

1. Start a savings challenge

A savings challenge can help you stay motivated and focused on your end goal. While the 52-week savings challenge is the most popular, there are plenty of others to choose from:

• 52-week savings challenge. This strategy requires you to increase your savings each week for an entire year. If you start by saving $1 on Week 1, then on Week 2 you’d save $2, and on Week 3 you’d set aside $3 and so on. By the end of the year, you would have accumulated $1,378. And if you add that to a high-yield savings account for some compound savings magic, you’d earn even more.
• The penny challenge. Similar to the 52-week challenge, this one requires you to set aside 1 cent on the first day, 2 cents on the second day and so on for 365 days. By the end of the year, you would have saved $667.95.
• Round up challenge. This one’s easier if you have a checking and savings account at a bank that offers savings roundups. This is more of an automated challenge, where your purchases are rounded up to the nearest dollar and that extra cash is then transferred to your savings account.
• The retirement challenge. This one’s a great challenge if you want to boost your retirement savings. All you’d do is increase your 401(k) contributions by 1%. This is typically considered a painless way of putting more money into your retirement, as a 1% increase won’t have a huge impact on your paycheck compared to a 5% increase.

If you’re a competitor at heart, find a friend or relative who is up for a little savings competition. Set your target savings goal and your timeline and have fun!

2. Earn extra side money

There are plenty of different ways you can earn extra money on the side. And if you’re not sure where to start, think about hobbies you could potentially convert into a side hustle. For example, a few years ago, I wanted to earn some extra income, and I knew I wanted to choose something that would be fun, motivating and not add extra stress after a long day. I chose three side hustles for different reasons:

1. Selling on Poshmark. A clean and clutter-free environment helps me unwind after a busy day at work. I knew I needed to organize and declutter, so making some extra income motivated me to start. Within just a few months, I had made $200 selling things on Poshmark.
2. User testing. While some might not find user testing a fun way to spend their time, I do. I love analyzing and helping others solve issues. So this was a great way for me to earn some extra money while relaxing at the end of my day.
3. Website building. There’s a running joke among graphic designers about clients not knowing what they want, leading to unnecessary back-and-forth edits. While I did experience my share of challenging clients, designing websites served as a fun and creative outlet and allowed me to make some extra money on the side. 

3. Use coupons and rewards apps

I’ve always been drawn to hearing stories about people who do extreme couponing. You’ve gotta appreciate someone who dedicates so much time collecting coupons to save money.

While I can’t say I’ve ever collected enough coupons (or at all) to walk away with $100 worth of groceries for only $10 or less, I never shop online without checking for promotions or rewards.

Honey app is my personal online shopping buddy. But it’s not the only one out there. From online coupon extensions like Capital One Shopping to apps like Kudos that help you boost your rewards while shopping, there are many savings tools to choose from.

4. Take advantage of rewards cards

Saving money doesn’t mean you’ll have to cut your spending completely or go without your morning coffee. It’s just not realistic.

But you do need to create a budget to get a big-picture view of your finances so you can make necessary adjustments and see how much money you can store away.

You can further stretch your budget by taking advantage of rewards cards. If you're going to spend, you might as well earn something extra in return. But don’t let those rewards sit there. If you're earning cashback, consider transferring it to a savings account where it can grow.

Bottom line

Growing your money takes dedication and finding a strategy that works for you. Whether you're choosing a fun savings challenge, exploring side hustles, using online coupons, or maximizing your cashback rewards, each option can move you closer to your savings goals. The key is to choose something fun and motivating so you can continue nurturing your finances and reap the rewards for years to come.

About the author:

Alexa Serrano Cruz is a senior editor at Finder, specializing in banking. As a personal finance expert, she helps Americans make informed decisions about their finances. Her expertise includes savings, budgeting, kids' banking, and more. Prior to joining Finder, Alexa worked as an editor in Miami and New York.

Alexa is a certified anti-money laundering specialist and her personal finance expertise has earned recognition from reputable publications such as Nasdaq, Best Company, U.S. News & World Report, MSN, Yahoo, and Valuewalk. Alexa has also made notable appearances on platforms such as Winnie Sun TV, money podcasts like LifeBlood, and broadcast news publications like Fox News and NBC News.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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