4 Ways To Save More Of Your Income

Source: IRS, company sites. Cult of Money.

Why Saving Is Hard For Most People

Saving more is mostly a habit problem, not a math problem. The Federal Reserve's report on the economic well-being of US households in 2025 found 63% of adults would pay a $400 surprise expense with cash or its equivalent, unchanged from 2024. The other 37% would borrow, sell something or not be able to pay.

The amount you save matters less at first than doing it every pay period. Once the habit is in place, you can raise the amount when your income grows.

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1. Try A Money Saving Challenge

A money saving challenge gives you a simple rule to follow for a set period. They work at any time of year, not only in January. Four popular versions:

• The $5 bill challenge. Every $5 bill you receive goes into a jar, then into savings once a month. This one fits people who still use cash.
• The penny challenge. Save 1 cent on day one, 2 cents on day two, and so on up to $3.65 on day 365. The year ends with $667.95.
• The 52-week challenge. Save $1 in week one, $2 in week two, rising to $52 in the last week, for a total of $1,378. Running it in reverse, from $52 down to $1, front-loads the hard weeks.
• The $20-a-paycheck challenge. Set an automatic $20 transfer every payday. At 26 paychecks a year, that's $520, and you can raise it later.

2. Raise Your Retirement Contributions In Small Steps

Raising your retirement contribution by 1% at a time is one of the easiest ways to save more, because the change is too small to notice in your paycheck. Many 401(k) plans offer automatic escalation, which raises your rate by 1% each year until a cap you choose.

The 2026 limits, according to the IRS:

Source: IRS. Cult of Money.

Always contribute at least enough to get your full employer match, since that's money you'd otherwise leave on the table. If you have no workplace plan, an IRA at a broker such as Fidelity is the simplest start. Our page on crypto in your retirement account covers the options for holding crypto in an IRA.

Outside the US, the same idea applies to your own tax-favored accounts. UK savers can put up to £20,000 a year into ISAs, according to GOV.UK, and Canadians have a 2026 TFSA limit of $7,000, according to the Canada Revenue Agency.

3. Let An App Move Money For You

Automatic savings apps watch your checking account and move small amounts into savings when you can spare them. Digit, the app Alexa recommended in 2017, was bought by Oportun in 2021 and now runs inside Oportun's app as Set & Save. After a 30-day free trial it costs $5.99 a month, or $3.99 a month on a yearly plan, according to Oportun's App Store listing.

Many banks now build the same feature in for free. Look for rules such as "move $10 every Friday" or "save the difference when a paycheck is larger than usual." If your bank doesn't offer it, a simple scheduled transfer does the same job at no cost.

4. Round Up Your Purchases

Round-up apps invest the spare change from each purchase. Buy coffee for $4.30 and 70 cents goes into an investment account. Acorns, the best-known round-up app, charges a monthly fee of $4, $8 or $12 depending on the plan (Bronze, Silver or Gold), according to Acorns' pricing page.

Watch the fee on a small balance. A $4 monthly fee is $48 a year, which equals 9.6% of a $500 balance. Round-ups make the most sense once your balance is large enough that the fee is a small share of it, or if you use the other features in the plan.

Some crypto apps offer round-ups into Bitcoin. Treat those as investing, not saving, because the balance can fall as quickly as it grows.

Where To Keep The Money You Save

Keep your savings at a different bank from your checking account. Money you can't see in your everyday banking app is harder to spend on impulse, and a high-yield savings account pays more than most checking accounts. Two options on our partner list are CIT Bank and Raisin. Deposits at FDIC-insured banks are covered up to $250,000 per depositor, per bank, per ownership category, according to the FDIC.

Should You Save In Stablecoins Instead?

A stablecoin such as USDC or Tether tracks the US dollar, and some platforms advertise yields on it. It's not the same as a savings account. The GENIUS Act, signed in July 2025, sets reserve rules for US payment stablecoin issuers, but stablecoins are not covered by federal deposit insurance and issuers can't pay interest or yield, according to the text of the law. The FDIC proposed rules to implement it in April 2026. Any yield comes from the platform lending or staking your coins, which adds the risk that the platform fails.

Our comparison of USDC and USDT covers how the two largest stablecoins differ, and the crypto savings accounts tracker shows current platform rates and risks. For an emergency fund, an insured bank account comes first.

Two Habits That Make It Stick

Be consistent. Saving a small amount every pay period builds the habit faster than saving a large amount once in a while. Automate it so you don't have to decide each time.

Keep the money out of sight. A transfer to another bank takes one to three business days, which is enough friction to stop most impulse spending. Name the account after the goal, such as "Car fund," so withdrawing feels like a choice.

For more on putting savings ahead of spending, see our page on how to pay yourself first.

What To Watch Out For

• App fees on small balances. A flat monthly fee can cost more than the account earns.
• Overdrafts. Set a minimum checking balance in any automatic savings app so transfers don't trigger overdraft fees.
• Uninsured "savings" products. Crypto yield accounts and stablecoin rewards aren't bank deposits. Several large crypto lenders froze customer withdrawals in 2022.
• Skipping the match. Saving in a regular account while missing your employer's 401(k) match leaves free money behind.

Update

Alexa's own habit, logging in to her retirement account every few months to raise her contribution by $20 or add a lump sum, still works and costs nothing. The apps she named in 2017 have changed: Digit is now part of Oportun, and Acorns has moved to flat monthly plans. The Cult of Money editors replaced the old savings statistics with the Federal Reserve's current survey and updated every limit for 2026.

FAQ

How Much Of My Income Should I Save?

A common target is 15% to 20% of take-home pay, counting retirement contributions. If that's out of reach, start with 1% to 5% and raise it every few months. The habit matters more than the starting amount.

What Is The 52-Week Money Challenge?

You save $1 in the first week, $2 in the second and so on, ending with $52 in week 52. The total for the year is $1,378.

How Much Can I Put In A 401(k) In 2026?

The 2026 employee limit is $24,500. Workers 50 and older can add an $8,000 catch-up, and those aged 60 to 63 can add $11,250 instead.

Are Stablecoins A Safe Place To Keep Savings?

Stablecoins aren't covered by FDIC insurance, and their value depends on the issuer's reserves and the platform holding them. They suit payments and moving money between crypto apps, but an insured savings account is the safer home for an emergency fund.

Are Round-Up Apps Worth It?

They're worth it if the monthly fee is small compared with your balance or you use the plan's other features. On a balance under $1,000, a $4 monthly fee takes a large bite.