Wednesday, January 27, 2021

7 Tips on How to Start Saving Money

Sometimes, getting started is the hardest thing about saving your money. However, saving is an achievable goal. It only requires commitment and having financial discipline. Regardless of the amount you earn, you can achieve your short-term and long-term financial goals.

To realize your financial goals, you need to develop a realistic and simple strategy. The following is a step-by-step guide on how you can successfully save money for your future.

1.       Determine your Expenses

The first step to start saving your money is to determine the amount you spend. Ensure you keep track of your expenditures. Once you have the figures, classify the figures based on the categories of your expenditures.

After classifying the figures, get the total amount. You can use your bank and credit card statements to obtain accurate data. You can also use spending trackers such as digital programs or mobile apps to help you automate these figures.

2.       Budget your Savings

Once you have developed an idea of what you spend monthly, start organizing your detailed expenditures in a workable budget. The budget should be based on your monthly income. Developing a budget enables you to strategize your spending and reduce any overspending.

Your budget should also consider regular expenses that do not occur every month, for instance, car maintenance. Aim to save at least 10-15 percent of your total income.

3.       Develop Methods for Reducing your Expenses

If your expenditures are too high, you should consider developing some mechanisms to reduce them. You can identify and reduce the budget for non-essential expenses such as dinner outs and entertainment. You can also reduce your expenses by reducing your fixed monthly expenses like cell phone subscriptions and television packages.

4.       Set your Savings goals and Objectives

Setting a savings goal is a strategic way of saving money. Establish the short-term and long-term goals you would like to achieve. These goals may include marriage, vacation, and retirement plans. Determine the amount of money you need and the approximate period you need to save it.

If you are saving money for your kid’s education or for your retirement, it is recommendable for you to open an investment account. You can also enquire info on retirement planning on high-income earners from online sources. Ensure your goals are realistic and achievable.

5.       Determine your Priorities

Besides your income and expenses, your goals should also determine your savings allocation. Learn to prioritize your savings.

6.       Select Appropriate Tools

Use your savings goals to determine the most appropriate channel of savings. Some tools are ideal for long-term goals (such as retirement), while others are ideal for short-term goals. These tools include savings accounts and insurance programs.

7.       Automate your Saving 

Most of the banks offer automated transfers. Automated bank transfers facilitate convenience and discipline in saving.


Saving money for future use is an achievable goal. You only need to develop a smart and workable strategy based on your income. To successfully realize your long-term and short-term goals, stay committed and focus on your saving strategy.

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