'Super savers' share 7 strategies they use to save more than half of their income (2024)

Insider rounded up seven savings tactics from "super savers," or people who are setting aside more than 50% of their income, to help you keep more of what you make.

1. House hack to lower or eliminate your housing cost

House hacking is a strategy that involves renting out a portion of your home and using the income to cover some (or all) of your housing costs.

It means buying a property, which requires savings, but if you have the means to buy a duplex or multi-family home, live in one unit or room, and rent out the other unit or rooms, it could be an excellent way to save on housing.

Ali and Josh Lupo used this strategy to pay down six-figures worth of debt. They went from owing $1,300 in rent every month to living for free in upstate New York by buying a duplex, living in half of it, and renting out the other half. Today, they own two duplexes and keep 100% of what they earn from their day jobs, thanks to a combination of keeping their major expenses like housing low and creating multiple income streams.

Todd Baldwin also house hacked to start building his real estate portfolio, which earned him more than $1.5 million in 2021. The first property he bought was a six-bed, four-bath home outside of Seattle, Washington. He lived in the master bedroom, and rented out four of the other rooms. The rental income more than covered his monthly mortgage payment, meaning he was not only living for free but turning a profit.

If buying a property doesn't make sense for you right now, consider living with roommates or moving into a smaller space to lower your rent. Housing is a massive cost and if you can find a way to lower that line item in your budget, you can free up a lot of cash.

2. Focus on cutting the other 2 major expenses: food and transportation

Super savers will often focus on cutting "the big three expenses": housing, food, and transportation.

Once you have your housing costs under control, move on to food and transportation. Avery Heilbron, who saves up to 80% of his income and is on track to retire early, believes that finding ways to cut back on the big stuff is much more effective than obsessing over how much you spend on the little things.

Trimming the major expenses might require upfront sacrifice, he said: "You may need to move into a different apartment that's cheaper or have some roommates. Maybe you get rid of your car. Maybe you stop eating out so much and learn how to cook." But the sacrifice doesn't have to be permanent and will pay off in the long run.

Cutting back on food can be as simple as going out to eat less or deleting food delivery apps off your phone, like DoorDash or UberEats. If you're trying to save money on transportation, use public transit to get around if it's available in your area. If not, try mixing in some active commutes if possible and use a bike or your own two feet to get around. Using your car less — or, even better, selling it and not using it at all — can save a bunch of gas money and is good for the environment.

3. Track your expenses to understand where your money is going

Brennan and Erin Schlagbaum paid off their $234,000 mortgage in five years, plus $38,000 in student debt, and now save up to 86% of their income. One of the most important steps they took was reviewing their spending to understand where their money was going and where they could cut back.

They noticed that seemingly small expenses like home supplies, Target runs, and eating out added up quickly. Simply by combing through their credit card statements, they found about $1,000 in miscellaneous spending each month that they could redirect to their loans, they said.

The Lupos had a similar experience. "A few years ago, we thought we had a good idea of what we were making and spending," said Josh, "but when we started actually tracking it, we realized our numbers were completely off."

Once they understood where their money was going, they were able to implement lifestyle changes that allowed them to cut back significantly. "It's really important to get a good idea of: How much am I making every month? How much am I spending? What debts do I have? What assets do I have?" Ali said. "You want to get a picture of where your money is going so you can optimize it."

4. Set specific money goals

The Schlagbaums wrote down clearly defined money goals, including when they wanted to pay down each of their debts, to help keep themselves on track.

They found that by writing them down and being reminded of them each day, they were more motivated to achieve them. As a result, they naturally increased their savings rate in order to hit their goals sooner.

Brennan prefers using a whiteboard to track their money goals. It includes their one-, five-, and 10-year goals, plus his daily schedule. "When I put something on there, it will get done," he said.

5. Find ways to increase your income

Ultimately, there's a cap on how much you can save — if you increase your income, though, and keep your lifestyle the same, you can boost your savings rate significantly.

"A great team doesn't just play offense or just play defense," the Lupos said. "They play both, and they often know when to prioritize one over the other." The Lupos make money from their day job salaries, real-estate holdings, and through their personal finance brand, The FI Couple. "Ultimately, what we're all after is growing the gap between income and expenses. Each person's situation is unique, but playing offense and defense simultaneously is how you grow that gap."

The Schlagbaums did the same thing: They negotiated raises at work and both earned extra income on the side, primarily through Budgetdog, a company Brennan started in 2019 to help other people gain control of their finances.

"Focusing on 9-to-5 promotions and side income is so important," said Brennan. "Budgeting wasn't the only thing we did to pay this [debt] off — it was absolutely essential — but it was not the only thing."

6. Invest your extra money

A simple way to keep more of your earnings is to throw any extra money towards your investments. That way, you won't be tempted to spend it.

Baldwin reinvests the rental income he generates into more real estate. He also invests in index funds. As of November 5, he had $1.26 million in Vanguard's S&P 500 fund (VOO), according to a copy of his brokerage account balance that Insider viewed.

The Lupos use a Roth IRA and a taxable brokerage account to invest their money in index funds and exchange-traded funds (ETFs). The Schlagbaums throw their extra savings into various retirement accounts, and also invest in index funds and ETFs via a brokerage account.

Keep in mind that investing always comes with risk, but index fund investing can be a great way to put your money to work without taking on so much risk.

To make sure you invest your extra savings, try setting up automatic contributions to your investment accounts. In other words, have a certain amount of money automatically lifted from your checking or savings account each month and sent directly to your investment account. Over time, you'll learn to live without that money.

7. Find joy in living simply

Steve Antonioni has been saving the majority of his income for years. It allowed him to build up about $90,000 in savings over four years and quit his 9-to-5 to pursue a career as a YouTube creator.

He says that his appreciation for simplicity makes it fairly easy to save a bunch of money. "I really enjoy doing things for myself, as opposed to people doing things for me," he explained. For example, he'd rather go to the grocery store, pick out his ingredients, and cook his own food than eat out at a restaurant. "That naturally saves you money. If you're paying somebody else to do something for you, it's always going to cost more money."

He saved hundreds of dollars a month by commuting to work on his bike, rather than having a car or using public transportation.

"I don't need a lot of things to be content," he said.