Finance
It’s Time to Revisit Your Savings Strategy: 4 Finance Experts Share Their Top Money Tips for 2024
No savings strategy is one-size-fits-all. But with interest rates expected to drop later this year, you may be rethinking your savings plan for 2024.
Right now rates for savings accounts and certificates of deposit remain high. But so do the rates for borrowing, making credit card debt and loans even more expensive to pay off. Combined with high prices, you may find it more difficult to take advantage of high savings rates.
Depending on your financial goals, you may not need to pivot from your current savings strategy. “Instead, the beginning of the year is a time to review your finances and plans,” said Alaina Fingal, owner of The Organized Money and CNET expert review board member.
Even if lower savings rates are on the horizon, there are still strategies you can follow to maximize your savings. Here’s what our CNET Money experts recommend for the year ahead.
Alaina Fingal
Certified financial coach and founder of The Organized Money
Bernadette Joy
Money coach and founder of Crush Your Money Goals
Lanesha Mohip
Corporate accountant and founder of Polished CFO
Rita-Soledad Fernandez Paulino
Money coach and founder of Wealth Para Todos
Take a close look at your budget
We all have short-term savings goals, such as setting up a sinking fund for an upcoming trip. But if you’re struggling to save, Fingal recommends taking a look at all of your expenses first.
“If you are kickstarting your savings for the year, I am a fan of referencing your budget, bill list and debt obligations to determine what your saving capacity currently is,” Fingal said.
List out all of your bills and any recurring expenses, such as gas and groceries. Then, subtract your monthly expenses from your income to determine how much you have left. Once you know what’s going in and out of your account regularly, you can set a realistic savings goal.
If there’s less money left over than you were hoping, consider cutting back where you can — such as revisiting your cellphone plan or comparing car insurance policies.
Ease your way into saving
“Many times when we try to save big chunks of money, we fail and transfer the money back into our checking accounts. When we start small it’s easier to build the habit.”
Setting big goals like savings $10,000 before the end of the year may sound more appealing, but if you’re just getting started, you may find it harder to reach a lofty goal like this. Starting small and using tools like automatic transfers can help you make real progress.
“If you are new to saving, set an auto-transfer on payday that is 2% to 5% of your income. Starting small will help you keep the money in your savings account and grow it consistently,” said Fingal.
Setting up automatic transfers to a high-yield savings account can help take the guesswork out of saving. Automatic transfers can also help you avoid the temptation of spending since it’s quickly moved to a new account.
For instance, let’s say you were able to cut two streaming subscriptions to put an extra $30 in your pocket each month. You may set up an automatic transfer to move this amount from your checking to your savings account once a month. As you’re able to free up more money, you can change your transfer amounts to bulk up your savings even more.
“Many times when we try to save big chunks of money we fail and transfer the money back into our checking accounts,” said Fingal. “When we start small it’s easier to build the habit. Once you build the habit, it will get easier to save more money over time.”
Experts recommend comparing savings rates, bank fees and other features before opening a new savings account. Enter your information below to get CNET’s partners’ best rate for your area.
Make 2024 the year you build your emergency fund
Emergencies (and their costs) can be inconvenient and expensive. The best way to prepare for the surprise expense is to save. Otherwise, you’ll lean on borrowing to cover the costs, which can land you in more trouble financially, especially with credit card APRs averaging over 20%.
If you feel daunted by lofty emergency fund savings goals, setting a more manageable goal for 2024 may help.
“Many start off with three to six months of savings for emergency funds, but I tell people to start off with one month’s worth of expenses first and then focus on paying down credit card debt for the rest of the year,” said Bernadette Joy.
Experts agree that a high-yield savings account is the best place to keep your emergency fund. A high-yield saving account offers an overall higher interest rate, the ability to access funds within three to five days and is FDIC- or NCUA-insured, said Fingal.
Try a savings challenge
There are plenty of savings challenges on social media that can motivate you to meet your 2024 savings goals. No-spend months, like “no-spend January,” encourage people to only pay for necessities in order to put more toward saving.
You could also tap more into soft saving, a new savings tactic from Gen Z. Soft saving focuses on what’s within your control and finding balance in your finances. For example, instead of stressing about retirement, you might put more emphasis on growing an emergency fund or paying down debt. It’s a calmer approach to tackling your finances piece by piece instead of trying to find room for every possible money goal.
If you didn’t kick off your new year with a savings challenge, there’s still time to get started. For example, the “eating-in challenge” encourages you to go grocery shopping and cook at home to save money instead of eating out. Even if you only stick to the challenge for a month, it can add extra money toward your goal. You may even try other challenges throughout the year, such as shopping your closet in February and only free leisure activities during the spring.
Be realistic about your goals
If you’re trying to save $12,000 by the end of the year, that means you should have at least $1,000 in extra cash flow each month.
A lot can happen within a year. You may have started planning a vacation for 2024 at the end of last year. Or you may still have the same goals but have found your priorities have shifted. Maybe you needed to buy a car or fund a home repair. Your financial plans may still be doable for this year, but experts suggest being pragmatic and pivoting where necessary.
Lanesha Mohip, owner of Polished CFO Solutions, recommends reviewing the progress you’re making toward your short-term savings goals and making any necessary adjustments. If you bought a car last year and now have a car payment you weren’t counting on, you may want to put less toward your vacation fund to make room in your finances for the new expense, said Mohip. But it’s important to be honest about your expenses and how much you’ll have left over to put toward your goals.
“Be very realistic about what your savings goals are,” agreed Rita Soledad Fernández Paulino, a personal finance coach and founder of Wealth Para Todos, who goes by “Soledad.”
“If you’re trying to save $12,000 by the end of the year, that means you should have at least $1,000 in extra cash flow each month,” she said.
If you can’t find room in your budget to hit this $1,000 goal or if you don’t know where your money is going each month, setting savings goals will be more challenging, Soledad added.
But if you’re already feeling confident about your saving strategy, now’s the time to focus on maximizing your earnings while rates are high. If you have funds set aside that you won’t need for a few years, locking in a high CD rate now before rates fall can help you earn guaranteed interest. You may also want to compare bond and high-yield savings accounts to make sure you’re getting the best rate possible, said Mohip.
Don’t worry about finding the ‘best’ rate
If you’re already earning a fairly competitive rate, don’t worry about getting the highest rate possible. There may only be a few cents’ difference between what you’re earning in a 4.25% APY savings account and a 4.50% offer from another bank. Plus, moving your money as rates continue to fluctuate could mean more hassle for the same return.
Instead of chasing yield, focus on putting your money to work as soon as you can. Find a high-yield savings account that you feel comfortable stashing your money in. Even if it doesn’t have the highest APY, you should still be able to deposit and withdraw money when you need. Unless you’re keeping money at an account that’s giving you pennies on your savings (such as 1.25%) you’ll still earn a decent return on your savings — whether it’s 4% or 5%.
“Yes, we want to get the highest rate of return on our investments and our savings,” said Soledad. But she still stresses the importance of building savings over chasing a high interest rate. Otherwise, she warns you may have to rely on debt, which can put you in a precarious financial situation.
Revisit your retirement goals
In 2024 the focus should be on paying off all consumer debt and getting their emergency funds in place before considering investing this year.
When thinking about the future, Mohip also recommends looking at your retirement investment portfolio from last year. Rates may have changed that can help or hurt your investment, and you may decide to make some changes. Long-term goals, like retirement or sending your children to college, may be decades away. But experts still recommend investing now for long-term goals if you can.
“At the top of a new year, I recommend individuals always review their retirement investment portfolio from the past 12 months to see what mix of assets they have and review if rate changes have either helped or hurt their return on investments since these savings buckets are meant for long-term growth,” said Mohip.
But above all, Bernadette Joy, a personal finance coach recommends getting your short-term financial goals in place before investing — especially if living from paycheck to paycheck.
“In 2024 the focus should be on paying off all consumer debt and getting their emergency funds in place before considering investing this year,” said Joy.
Track your savings progress and celebrate milestones
When balancing your daily expenses and other priorities, keep an eye on the progress you’re making toward your financial goals. Every step counts.
You may try a visual representation such as a savings tracker that you can color to show your progress. Or you can write it down on a chart month-by-month. Apps such as You Need a Budget and Loot also offer ways to monitor your progress virtually.
“It’s good for you to notice your progress so you can celebrate that,” said Soledad.
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Finance
German finance minister wants to scrap spousal tax splitting
Last weekend, several thousand people took to the streets in Munich to demonstrate against abortion and assisted suicide. One speaker made an extremely dramatic plea against what he called the “culture of death” that has allegedly taken hold in Germany. One sign of this, the speaker argued, was that the government is planning to abolish a regulation known as “spousal tax splitting.”
Is tax law really relevant to deep philosophical debates on the sanctity of life? It is even a matter of life and death at all? Surely we needn’t go that far? In any case, the intense political uproar surrounding the new debate on whether to abolish spousal tax splitting is notable, even by today’s standards of populist outrage.
An advantage for couples with widely divergent incomes
The row was sparked by Germany’s vice chancellor and finance minister, Lars Klingbeil, of the center-left Social Democratic Party (SPD), who said he wanted to abolish and replace the joint taxation of spouses’ income, a system that has been in place since 1958.
How exactly does spousal tax splitting work? In Germany, married couples (and since 2013, couples in civil partnerships), can choose to have their income assessed jointly by the tax authorities.
It means that the taxable income for both spouses together is halved – as if both partners had each earned an equal half of the income. Their tax liability is then determined by simply doubling the income tax due on one half.
As people who earn more pay higher taxes in Germany, this system benefits couples where one partner (and often this is still the man) earns significantly more than the other (in practice often the woman).
Costs of up to €25 billion per year
If for example one partner earns €60,000 ($70,512) a year and the other partner earns nothing, the couple will be taxed as if they earned €30,000 each. In this example, the couple would save nearly €5,800 in taxes per year compared to the amount they would owe if both partners filed their taxes separately. According to the Finance Ministry, spousal tax splitting costs the government a total of up to €25 billion annually.
Some critics have long viewed splitting as a tool to keep women out of the labor market, because the more a woman earns, the larger her tax burden becomes. Klingbeil seems to agree, arguing on ARD television in late March that the system was “out of step with the times.” The spousal splitting system reflects “a view of women and families that is completely at odds with my own,” he said.
Chancellor Merz said to be in favor of splitting
On Monday of this week, Klingbeil got some surprising support on this from Johannes Winkel, head of the youth wing of the conservative Christian Democratic Union (CDU).
“Given the demographic reality, the government should create incentives to ensure that both partners in a relationship are employed,” Winkel told the Funke Media Group. “In the future, tax relief should primarily be granted to married couples when they are facing hardships related to raising children.”
But the chancellor is a vocal skeptic of the proposal. “I am not convinced by the claim that joint filing for married couples discourages women from working,” Friedrich Merz said at a conference organized by the Frankfurter Allgemeine Zeitung newspaper. “Marriage is a relationship based on shared income and mutual support. And in a marriage, income must be treated as a joint income for tax purposes, not separately.”
Klingbeil’s alternative plan
At around 74%, the labor force participation rate for women in Germany is one of the highest in Europe, but half of them work part-time.
Klingbeil’s idea is to replace the existing system with a more flexible approach: Both partners would be able to distribute tax-free income among themselves in such a way that it minimizes their tax liability. This would allow the couple to continue enjoying a tax advantage, albeit not to the same extent as before. And whether one partner earns more than the other would become less important.
However, it remains to be seen whether Klingbeil will be able to push through his proposal. Aside from Germany, similar regulations offering tax benefits to couples exist in Poland, Luxembourg, Portugal and France.
This article was originally written in German.
Finance
Departing inspector general targets Council Office of Financial Analysis
The $537,000-a-year office created in 2014 to advise the City Council on financial issues and avoid a repeat of the parking meter fiasco has failed to deliver on that mission, the city’s chief watchdog said Tuesday.
Days before concluding her four-year term, Inspector General Deborah Witzburg said a shortage of both adequate staff and financial information closely held by the mayor’s office prevents the Council’s Office of Financial Analysis from helping the Council be the the “co-equal branch of government” it aspires to be.
In a budget rebellion not seen since “Council Wars” in the 1980s, a majority of alderpersons led by conservative and moderate Democrats rejected Mayor Brandon Johnson’s corporate head tax and approved an alternative budget, including several revenue-generating items the mayor’s office adamantly opposed.
But Witzburg said the renegades would have been in an even better position to challenge Johnson if only their financial analysis office had been “equipped and positioned to do what it’s supposed to do” — provide the Council with “objective, independent financial analysis.”
“We are entering new territory where the City Council is asserting new, independent authority over the budget process. It can’t do that in a meaningful way without its own access to financial analysis,” Witzburg told the Chicago Sun-Times.
Chicago Inspector General Deborah Witzburg’s latest report focuses on the Chicago City Council’s Office of Financial Analysis.
Jim Vondruska/Jim Vondruska/For the Sun-Times
But the Council’s financial analysis office, she added, “has never been equipped or positioned to do what it needs to do. It needs better and more independent access to data, and it needs enough staff to do its job. It has a small number of employees and comparatively limited access to data.”
The inspector general’s farewell audit examined the period from 2015 through 2023. During that time, the financial analysis office budget authorized “either three or four” full-time employees. It now has a staff of five .
Witzburg is recommending a staffing analysis to identify how many people the financial office really needs — and also recommending that the office “get data directly” from other city departments, “ rather than having it go through the mayor’s office.”
The audit further recommends that the office develop “better procedures to meet their reporting requirements” in a timely manner. As it stands now, reports are delivered “sometimes late, sometimes not at all,” the inspector general said.
“We find that those reports have been both not timely and not complete in terms of what they are required to report on and that those reports therefore have provided limited assistance to the City Council in its responsibility to make decisions about the city’s budget,” she said.
The Council Office of Financial Analysis responded to the audit by saying it hopes to add at least three full-time staffers in the short term and has made “some progress” over the last three years in improving their access to data, but not enough.
The office was created in 2014 to provide Council members with expert advice on fiscal issues.
For nearly two years the reform was stuck in the mud over whether former 46th Ward Ald. Helen Shiller had the independence and policy expertise to lead the office.
Shiller ultimately withdrew her name, but the office was a bust nevertheless. In an attempt to breathe new life into it, sponsors pushed through a series of changes.
Instead of allowing the Budget chair alone to request a financial analysis on a proposal impacting the city budget, any alderperson was allowed to make that request.
The office was further required to produce activity reports quarterly, not just annually.
Now former-Budget Chair Pat Dowell (3rd) then chose Kenneth Williams Sr., a former analyst for the office, as director and gave him the “autonomy” the ordinance demanded.
Two years ago, a bizarre standoff developed in the office.
Budget Committee Chair Jason Ervin (28th) was empowered to dump Williams after Williams refused to leave to make way for a director of Ervin’s own choosing.
The standoff began when Williams said he was summoned to Ervin’s office and told the newly appointed Budget chair was “going in a different direction, and I’m putting you on administrative leave” with pay.
“He took all my credentials and access away. I would love to come to work. I wasn’t allowed to come to work,” Williams said then.
Williams collected a paycheck for doing nothing while serving out the final days remainder of a four-year term.
Ervin’s resolution stated the director “may be removed at any time with or without cause by a two-thirds” vote or 34 alderpersons. He chose Janice Oda-Gray, who remains chief administrator.
Finance
Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant
Little League® International has announced that Reilly Barnes accepted a new role as Purchasing/Finance Assistant, effective April 6, 2026. Barnes transitions from a temporary Purchasing Assistant to this full-time position to assist in the year-round demands of purchasing for the organization, as well as the region and Little League Baseball and Softball World Series tournaments.
“We are thrilled to welcome back Reilly to our team as a full-time Purchasing/Finance Assistant. Reilly’s prior experience, time management, and attention to detail make him an invaluable asset to the purchasing team,” said Nancy Grove, Little League Materials Management Director. “We look forward to the positive contributions he will have on our organization.”
In this role, Barnes will be responsible for processing purchase requisitions, coordinating souvenir products, and tracking order fulfillment. He will also assist with evaluating suppliers, reviewing product quality, and negotiating contracts for effective operations.
After most recently working as a Logistician Analyst at Precision Air in Charleston, South Carolina, Barnes, a Williamsport native, returns after honing his skills in the fast-paced environment. Prior to his time at Precision Air, Barnes served as a Procurement Specialist at The Medical University of South Carolina, where his expertise and knowledge were instrumental in supporting both education and healthcare needs.
“I am thrilled to return to Little League in this full-time role,” said Barnes. “Coming back to my hometown and having the opportunity to work for an organization that has played such a special part of my upbringing means a lot. I can’t wait begin this new opportunity.”
Barnes graduated from the University of Pittsburgh in 2022 with a B.A. in Supply Chain Management, Finance, and Business Analytics.
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