How to Save Twice as Much as the Average American: 7 Creative Ways to Boost Your Savings in 2025

Did you know the average American saves only a small percentage of their income each year?  Imagine if you could double that rate—with small lifestyle changes.

In this guide, we’ll explore 7 practical and creative ways to ensure savings in 2025. From smart spending hacks like fueling up at Costco to enjoying budget-friendly experiences in the Greater Sacramento area, this is your roadmap to saving more and living well.

How Much Are People Saving? Let's look at the number to get a clearer picture. 

• The Average American: On average, Americans save about 5-10% of their income, though this can fluctuate based on economic conditions and individual circumstances. Many of us are living paycheck to paycheck, with minimal emergency savings.

• Did you know?: Globally the average savings rate hovers around 20% of income, reflecting varying economic conditions around the world and cultural attitudes toward saving.

• Top 20% of Americans: The highest-earning and top-saving Americans manage to save anywhere from 20-40% of their income, leveraging higher incomes and disciplined financial habits.

Habits of the Top 20% What sets the top 20% apart? Here are some key habits:

1. Mindful Spending: They prioritize spending on needs over wants and avoid lifestyle inflation as their income grows.

2. Career and Education: Many have invested in higher education or pursued high-demand careers, which provide higher earning potential.

3. Investing Wisely: Instead of letting their money sit in savings accounts, they allocate funds to investments such as:

   • Stocks and ETFs: Diversified portfolios in the stock market. Now with apps like Robinhood stocks are easily accessible.

   • Real Estate: Rental properties or REITs. Or owning a property that is an inflation hedge against rising rents.

   • Retirement Accounts: Maximizing contributions to 401(k)s or IRAs to benefit from compounding interest.

4. Budgeting: They often track their expenses meticulously, using tools or apps to stay on target. 

7 Creative Ways to Save in 2025: Consider these actionable tips to help you save more:

1. Cancel Unnecessary Subscriptions
   Take a hard look at recurring expenses like streaming services (Netflix or spotify), apps, or gym memberships you rarely use. Canceling these could free up $50-$200 per month. See if there are free options that could provide a level of Entertainment or service. For example instead Spotify consider Youtube Music. Instead of Netflix maybe Youtube can satisfy as entertainment. 

2. Fuel Up at Costco
   Gas prices add up, have you ever compared the prices from Chevron to ARCO; if so you've probably noticed a difference. Now, imagine being a part of a wholesale club that ensures you'll beat what you can get on average most of the time. Sounds like a great idea to me. By fueling up at Costco or similar wholesale clubs, you can save an average of 10% per gallon, which could translate to hundreds of dollars annually.

3. Eat Out Less
   In our instant gratification society dining is a growing expense in most people budget. The problem with this is that restaurants are having to raise their prices to keep up with the effects that inflation is having on their profit margin, so whose left to pay that? Us, with our future Wealth Building dollars. Cooking at home or meal-prepping can reduce your food expenses by up to 50%. If eating out, consider “happy hour” deals or share meals to cut costs. Some fast food places have apps in which you can find deals at a discount. Endless we're planning to eat out to work and produce more than the cost of the meal.

4. Cheap Dates and Experiences
   We don’t have to spend a fortune to have fun. Here are some affordable ideas that are near where I live:

   • Hikes: Hikes are great way to fill up your time off from work with fresh air and some excercise. Explore trails like we have in Sacramento like American River Parkway or Hidden Falls Regional Park for scenic, free adventures.

   • Parks with Water: Visit Folsom Lake or Discovery Park for picnics, kayaking, or swimming.

   • Free Events and Libraries: Check out local libraries for free workshops and activities or attend community events hosted at centers like the Crocker Art Museum’s free days.

5. Optimize Your Utilities
   Switch to energy-efficient appliances, unplug devices when not in use, and take advantage of time-of-use discounts for electricity to reduce utility bills.

6. Shop Smart - Set budget
   Take advantage of sales cycles and use cashback apps or loyalty programs. Buy in bulk for non-perishable items to save long-term.

7. Automate Your Savings
   Set up automatic transfers to a high-yield savings account or investment account. This “pay yourself first” strategy ensures you save consistently without thinking about it.

Conclusion Saving doesn’t have to feel restrictive. By making small, intentional changes and leveraging resources in your community, you can significantly increase your savings rate in 2025. Whether you’re fueling up smarter, enjoying budget-friendly dates, or learning from the habits of the top 20%, the key is to start now and stay consistent. Our habits tend to grow off of one another. One good habit like one dollar saved to can turn into a large amount of anything. 

What savings strategies have worked for you? Let’s collaborate and share ideas to help everyone make the most of their money in the new year!