Why is it so difficult to save money? There are many reasons, the chief among them being that we love to spend our paychecks.
However, we must save and invest money to protect our future interests. In fact, saving should be one of our top priorities.
Many reports state that the average American cannot withstand a $1,000 emergency. Therefore, we must change the culture around saving to change our outcomes.
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Two years ago, I wrote “Welcome to the Elite Savers of America,” which challenged people to save $10,000 in a high-yield savings account. Now, I am back with the same challenge. Let’s begin.
Why is saving important? When you don’t save, you put yourself at extreme risk of falling into debt. An emergency fund is essential to staying out of debt and beginning to build wealth.
Although this sounds like common sense, nobody taught me this growing up. Instead, they told me to get a job solely to pay bills.
To become a saver, you must change your culture around saving. The best way is to prioritize saving as an expense each month. This is what people mean when they say “pay yourself first.”
How I became an elite saver. I was never a crazy spender; however, I was also never a diligent saver. I always kept a moderate ($10,000) savings account before I got married, had kids, and bought a house.
After buying my house in 2008, my savings “magically” disappeared. If you own a home, you know what I am talking about.
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I never focused on saving until June 2019, when I had had enough. I was tired of being broke, behind, and bullied, and I wanted to take a different path.
The first step I took was becoming an Elite saver in my mind. This is actually the most crucial step because your mind dictates action.
After forcing myself to change, I opened my Discover high-yield savings account in June 2019. Today, I have over $13,000 in this account.
The magic of saving. The magic of saving is not having a considerable amount on display, but having a lack of debt in your accounts.
Over the years, I have had to tap into my HYSA for things related to many things, such as air conditioners, buying new homes, car repairs, and toothaches.
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These things represent why you want to maintain a savings account in the first place. I felt bad each time I had to tap my savings, but I also felt proud that I had savings at all.
The more diligently you save, the more likely you are to avoid bankruptcy. Bad things will always happen, but they don’t have to destroy your finances along the way.
Over the years, I have added two more high-yield savings accounts to my collection, giving me a total of three.
Taking a deeper look at my HYSAs. Let’s look deeper at my three different HYSAs; then I will explain why I need so many.
My Discover HYSA has a balance of $13,155. This is my emergency fund; however, I have multiple accounts I would use first before tapping into this one. The current interest rate on my Discover HYSA is 3.54%.
Next, my Samsung Money SoFi account is a high-yield checking account, which makes it unique. I have a debit card attached to this account. The balance is $2,360, and the interest rate is 4.25%. I use this account for any special spending “splurge” events.
Finally, I have my M1 Finance HYSA. I have $3,055 in this account, and the interest rate is 4.00%. I use this account for any projects we want to do around the house.
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Why do I have so many accounts? The main reason is to have multiple buffer accounts before I tap into my Discover emergency savings. Emergency savings should be only for that—emergencies.
How to start saving. The best way to start saving is to create an expense category on your budget for savings. My goal is to save at least $1,200 per month into my savings accounts, with $1,000 going into Discover.
My wife and I keep a tight budget and prioritize living below our means. One way we live below our means is having a roommate when we don’t need one.
We funnel the $1,000 from our roommate directly into our Discover. By the way, my wife has over $5,000 in her Discover HYSA.
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If you cannot seem to get ahead of your bills, you’ll need to find (and take advantage of) a financial exploit that will allow you to save.
Some financial exploits include working a second job, driving for Uber, getting a roommate, moving in with parents, working overtime, creating content, and starting a small business.
I make about $300 monthly from my writing, which isn’t much. However, I can put that money directly into my Samsung Money SoFi account. That’s over $3,000 per year I can store for more challenging times.
Ultimately, the person who plans for the future survives in the future. In fact, they will thrive in the years to come.
We live in uncertain times, and now is not the time to spend recklessly. Social media makes everyone seem as though they are rich.
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However, achieving $10,000 in a high-yield savings account is a massive achievement. In fact, it is more important in 2025 than it was in 2020.
Getting started with a HYSA. Many people fear transitioning to an online-only bank, but you don’t have to go all in. I still have Navy Federal and Wells Fargo accounts.
I like Discover as a good starting account for high-yield savers. Most people have heard of Discover, and you can trust them. Their interest rates are slightly lower than those of other banks, but their customer service is “beyond” top-notch.
Interest rates may go down in 2025 and 2026, so our savings may suffer a bit. However, we must continue to save to protect our future.
Inflation Ate My Paycheck 106
Conclusion. I am a proud member of the Elite Savers of America. By the end of 2025, I aim to save $20,000 in my Discover HYSA.
I feel great having a savings account with actual money in it. It is a life-changing experience to go from paying interest to receiving it.
How do you plan to save your first $10,000 in a HYSA? What financial exploits do you have at your disposal?
How long will it take you to save that much money? How can you add saving as a line item on your monthly budget allowance?
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These are questions you should ask yourself every day. The more seriously you take your saving ability, the more it expands and grows.
I remember being $70,000 in debt and not having any savings. Now, I have no debt (outside of mortgages) and $18,000 in various HYSAs.
My goal is to get as many people to become savers as possible. There is genuinely no reason to be in debt as we get older. We just need to prioritize our savings. Welcome to the Elite Savers of America.
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