Millennial Money Expert Erin Lowry: The Savings Account Hack I Swear By
Written by
Gabrielle Olya
Edited by
Gary Dudak
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Many people say they want to “save more” but don’t always have the motivation necessary to actually do it. Erin Lowry, author of the four-part “Broke Millennial” book series and one of GOBankingRates’ Money’s Most Influential Women, has a hack she swears by to stay on track with savings goals.
Here is Lowry’s best tip to boost your savings.
Erin Lowry’s Savings Account Hack
Lowry recommends giving every savings account a nickname so that it’s clear what the goal of each account is.
“I know it sounds silly, but most banks and credit unions allow you to nickname your accounts,” she told GOBankingRates. “Instead of seeing something generic like ‘Account 2393481,’ you can customize it to ‘Emergency Fund’ or ‘Japan Spring 2025.’ The more specific the better — including a timeline.”
Giving your accounts a clear purpose can help keep you motivated to stay the course to meet your savings goals.
“Having a nickname on your savings account won’t keep you from skimming little bits here and there, but it does serve as a reminder of why you’re saving, and may encourage you to leave that sum of money alone unless you’re cashing out for your goal,” Lowry said.
In addition to nicknaming your accounts, Lowry recommends utilizing high-yield savings accounts to help you meet your savings goals faster.
“That money better be in a high-yield savings account earning close to the prevailing top market rate,” she said.
Increase Your Earnings To Boost Your Savings
The more money you earn, the easier it is to set money aside. That’s why Lowry said it’s so important to be your own advocate to increase your earnings.
“Build your skills in negotiating,” she said. “Learning how to negotiate and continuing to develop that skill will enable you to earn more — whether it’s a traditional job or with clients as a freelancer.”
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Be Conscious About Your Spending
In addition to earning more, spending less is another route to boosting your savings. Lowry said it’s especially important to be mindful of how much you are spending on other people.
“Don’t let other people spend your money,” she said. “Social and familial pressures mean we’re constantly being asked to spend money on or for others. Think about attending weddings, bachelor/bachelorette parties, going home for holidays, birthday dinners, baby showers, retirement parties – and the list can go on and on.
“I’m certainly not saying to stop investing emotionally and financially into your friendships and family relationships,” Lowry continued. “However, you do need to set boundaries around how much you can afford to spend on other people’s milestones while honoring your own financial limitations and goals. Communicate about your boundaries early and openly so you aren’t simply saying ‘no’ all the time, and offer up alternatives to still participate within your budget.”
Jaime Catmull contributed to the reporting for this article.
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