Money Smarts Blog

Throughout 2022, we’re challenging you to save $5,000. We’re six months in — how’s your bank account looking?

If you’re on track (about halfway to the $5K goal), congrats! If your savings habits could use a bit of tweaking, not to worry — I’ve got you.

To recap, the first part of this series took you through the 52-week challenge (which should put you at $1,378 by the end of the year) and encouraged you to get rid of things you no longer use or need and turn that clutter into cash. Part two was all about cutting back — on unnecessary subscriptions, unused memberships and by using coupon clipping apps to find extra savings on daily necessities. I also spilled the tea on my own home downsizing experience. The savings from that alone was a huge step toward living debt-free.

Ready for more ideas that’ll boost your bank account in the back half of the year? Here we go.

Leave the air off … or at least a few degrees higher

Before you start sweating like a sinner in church just thinking about it, hear me out. Air conditioning can easily account for more than half of your energy bill this time of year (July in the Midwest … sheesh!). If your comfort level can handle leaving the windows open during nicer weather, go for it. Not down for sweating it out? Full disclosure: Me either. To compromise between my love of frosty temps and saving money, I usually kick the AC up several degrees warmer when I’m at the office. When I get back home, I bump the thermostat down a little and make sure to turn my ceiling fans on.

PRO TIP: SAVE ENERGY According to Energy.gov, you can save as much as 10% a year on energy costs by setting your thermostat 7-10 degrees warmer or cooler than normal for 8 hours a day. Consider investing in a programmable thermostat that lets you choose temperatures for certain times of the day. Set it, forget it and save!

Check in on everyday expenses

Small changes can add up over time, so adjusting some of your daily habits can have a big impact on your overall budget. Sometimes I feel like we’re a broken record at IHMVCU but setting up automatic transfers from your checking to savings each paycheck really is a simple way to build up your savings for whatever financial goal you have in mind. Switching to the autopay option for bills can also help you avoid late fees if you forget a due date, which can be $25 or more each time. I’ve even seen some phone carriers offer a discount as an incentive to enroll in paperless billing. Hey, an extra $5 off each month is $60 in your pocket at the end of the year!

Get a second job or side hustle

The extra income from working two jobs can help you pay down debt faster, get ahead on your bills or start an emergency fund. Too often, living paycheck to paycheck and not having any financial cushion causes stress (been there), so that side gig or second job can offer relief. Plus, you could learn new skills and expand your connections. You never know where it could take you.

PRO TIP: FLIP FOR PROFIT Flipping furniture has become a popular thing to do for extra cash. Yard sales, thrift stores, online markets and estate sales are great places to find funky pieces that might only need a little paint or easy repairs.

Look into your investment options

If you want to keep your money safe but easily accessible, short-term investments may be an option for you. Some examples include high-yield savings accounts, money market accounts and certificates of deposit (CDs). Talk to your financial advisor or retirement management company to learn more and weigh your options.

Already investing? The past few months have seen a lower market, so it could be worth a quick meetup to make sure you’re still on track to meet your goals.

Click to learn more.

With a little effort and some adjustments to your spending habits, it’s possible to reach your $5K spending goal by the end of the year. Keep going!

Click to answer >> What’s holding you back the most from reaching your financial goals?

Catch up on parts 1 & 2 to learn more about how you can save $5,000: