Is Your State Helping You Save More Money?

The cardinal principles of real estate are: Location, location, location. However, the place you call home significantly impacts your capacity to accumulate savings.

This is why Bankrate carried out research to identify the regions where saving money is most feasible and those where it's challenging to accumulate savings.

For the criteria, they utilized seven metrics divided into three categories: economic conditions of the state (50 percent), interest rates, certificate of deposits and high-yield savings accounts (25 percent) and an additional 25 percent allocated for taxes.

States where it's easiest to save money

Here are the 10 states where residents have an easier time to save money:

What are the commonalities among these states? They have lower tax bases, as Florida, Tennessee, South Dakota and Texas don't have state income taxes. Many of these states also have lower-cost-of-living areas.

While these states may offer tax advantages and a lower cost of living, you don't have to live in one to take advantage of high-yield savings accounts.

This Bankrate tool can assist you in discovering the highest savings rates offered by both online and brick-and-mortar banks.

Places where saving cash proves most challenging

On the flip side, these are the 10 states where it has become more difficult for locals to save funds:

Several of these states come with elevated expenses for daily life. Furthermore, they often feature higher tax rates, which adds to the overall cost, thereby complicating efforts to put aside savings.

If you reside in one of those locations or are seeking methods to increase your savings, budgeting apps turn out to be useful. A lot of them are user-friendly, several are available at no cost, and they can aggregate all your financial accounts into a single platform, simplifying the process of monitoring expenses.

One of our top picks is Empower. After giving it a try, I loved it so much that it has become my main budgeting tool. The best part is that it’s free and lets you manage both your personal and investment accounts all in one place. Additionally, you have access to fee-based advisory services through it.

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Other tips to save money

Alongside using budgeting applications, seek out savings alternatives that surpass inflation levels. While conventional physical banks provide a welcoming atmosphere and individualized assistance, they do not typically offer interest rates high enough to match inflation growth.

If you don't want to go with a high-yield savings account with an online bank, look at other options, like a certificate of deposit or a money market account .

Money market accounts are excellent because they allow you to earn a substantial returns while still having easy access to your funds whenever needed. Numerous financial institutions, such as banks and credit unions, provide these accounts along with features like debit cards and check-writing capabilities, effectively merging the advantages of both checking and saving accounts.

Another option is a CD . With a CD, you set money aside for a specified period of time and earn a guaranteed rate of return. Many CDs offer rates of return higher than 4%, helping you earn more money effortlessly.

Compare the best rates from Bankrate here:

With CDs, you'll want to keep your money in until the maturity date. If you try to withdraw it beforehand, the bank closes the CD and charges you a fee, negating the interest earned.

Hence, this approach is sensible only if you're at ease with putting funds away and not thinking about them.

The bottom line

Your location significantly influences your ability to save money. The Bankrate study can be useful if you're considering relocating, as it helps you pick a place that's better for savers.

Instead, consider using budgeting applications equipped with savings tools that offer better returns to guarantee maximum saving potential, irrespective of your area’s postal code.

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• Achieve Your Financial Targets Using These High-Interest Savings Accounts
• A Checklist for Affluent Individuals: Strategies to Safeguard and Increase Your Fortune

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