I saved over $17,000 in 2019 and my 2-part strategy strikes the perfect balance between my current and future goals

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I saved over $17,000 in 2019 and my 2-part strategy strikes the perfect balance between my current and future goals
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Maintaining consistency is key.

  • 2019 was a good year for my money as a few goals I set finally came to fruition.
  • I have a two-part strategy for saving money: I save for retirement by contributing a portion of my pretax salary to my 401(k), and I save for current goals by making automatic deposits into a high-yield savings account.
  • Maintaining consistency - with a few small, yet thoughtful adjustments - helped me saved nearly $17,000 in these accounts in 2019, including interest payments and an employer match.
  • See Business Insider's picks for the best high-yield savings accounts »

As a money enthusiast both at work and at home, it's only natural that I spend time reflecting on the state of my finances as the year, and decade, comes to a close.

I've been writing about personal finance for more than three years and I'm in the process of becoming a certified financial planner (CFP), but I'm still human - I overspend and overthink on a regular basis. If there's anything I learned in 2019 when it comes to managing my money, it's the everlasting power of solid, foundational habits.

Thanks to systems I initially set up in 2017 and 2018, I'm proud to say I was able to save more than $17,000 in 2019. This wasn't thanks to any type of windfall other than a modest tax refund, nor did I live on rice and beans to pinch pennies ... I simply stayed consistent.

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I automatically save in my 401(k) and a high-yield savings account

My strategy for saving money is two-fold. I've been contributing a portion of my pretax salary to my 401(k) at work since I started, and I direct a portion of my after-tax paycheck directly into a high-yield savings account to pay for the things and experiences I want sooner than retirement. The common thread? It's all done automatically.

By saving money off the top, I'm able to budget in reverse. My retirement fund and of-the-moment savings goals (this year it was my emergency fund and travel fund) are treated like the rest of my expenses - the money is taken out of my pay first, before I can spend the cash on expensive dinners or unnecessary Target runs. Whatever is left over in my checking account after all my fixed expenses are covered is essentially disposable income.

It's worth noting that a big reason why I'm able to save so much is because I have no major debt obligations. If I had high-interest consumer debt to pay down, I'd strongly consider redirecting that money to make extra payments before saving for a vacation.

But that's also precisely why I don't have short-term debt - I was able to get an emergency fund in place before getting hit with any unexpected bills or emergencies. Now I can draw from that savings account when I need to instead of relying on a credit card or loan.

Consistency and thoughtful adjustments are key

All told, I saved about $5,500 in my high-yield savings account this year - $1,500 of which I later moved into a new Roth IRA - and contributed nearly $10,000 to my 401(k). But that's just the money that came from me.

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I earned an additional $143 in interest in my high-yield savings account and a whopping $2,300 from my employer's matching contribution in my retirement plan. But my 401(k) isn't just a savings account. Every dollar I contribute gets invested, growing exponentially over time - so I ultimately "saved" much more toward my retirement goal in 2019.

While the foundation of my savings strategy remained the same throughout the year, I did make a few small, but crucial tweaks.

1. I bumped up my 401(k) deferral rate right after I got a raise so that my contribution would increase before I even had a chance to see a much bigger paycheck.

2. I moved $1,500 from my high-yield savings account into a Roth IRA to put my money to work in investments after I realized I was holding more cash than I needed.

In the end, I learned that consistency is key, but so are thoughtful adjustments. I can't say this will be my savings strategy forever, but I'm excited to see where it will bring me in 2020.

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