Spending cannot be totally avoided, as human needs continue to rise day after day. This makes saving a great tool one must possess in order not to be caught up by unforeseen circumstances. People save for different reasons, such as retirement, future goals, a down payment for a house, or simply to avoid debt and emergencies.
In this guide, we will explore the top 10 proven ways to save money. Keep reading to find out what you might have been doing wrong.
1. Thinking Ahead
Sometimes it’s not that we don’t know what will take money out of our pockets, but because we live too much in the moment, we shy away from thinking ahead. Thinking ahead can help us manage money better by focusing on priorities.
For instance, a parent knows that after the holidays, kids will return to school. But how prepared are you to meet their needs before the time comes? Thinking ahead raises questions like: What will they need for resumption? Maybe a new shoe or bag? Having this in mind makes you more careful with your holiday spending. It could mean hosting a modest birthday celebration instead of a luxurious one that drains your pocket.
2. Get Things for Free or Pay Less
A smart way to save money is by spending less when buying. Yes, you may need to get an item, but have you thought of ways to get it cheaper—or even for free? You don’t need to be a beggar to access free items. Here’s how:
- Before buying, check if anyone is giving out items they no longer use. Facebook groups and online communities can help.
- Ask close friends if they have what you need to give away or sell for less.
- If a fairly used item can serve your purpose, why spend so much on a brand-new one? Depending on your negotiation, you can save up to 30–50%.
3. Finding Your Why
Knowing the reason why you save can be a strong motivator when saving feels difficult or when you slack off after starting. Your “why” constantly reminds you of what to prioritize.
For some, it may be saving for a new home to cut expensive rent fees or paying off a mortgage. Whatever your reason, be honest with yourself.
Tip: Don’t overwhelm yourself with too many goals at once. Focus on the most important one, then move on to the next.
4. Minimize Restaurant Spending
Since eating out is often more expensive, cooking at home is a reliable way to save money. To do this:
- Create a meal plan and stick to a shopping list.
- Shop in supermarkets with reduced prices.
- Cook in large quantities and freeze portions for later use.
Extra tip: If you have space at home, plant a garden and grow vegetables or fruits that your family regularly consumes. This can help you save money over time.
5. Utilize Promotional Offers
Identify needs you constantly spend money on—such as toiletries, detergent pods, and household supplies. Buy them in large quantities during promotions from companies or supermarkets. This will save you both money and time.
6. Figure Out the Money That Is Yours
As an entrepreneur or salary earner, understanding how much you actually earn is key when budgeting.
Many make the mistake of budgeting based on gross income instead of net income. Gross income is not entirely yours because taxes, premiums, and other deductions come first. Net income is the money you truly take home after those deductions. Always work with your net income for realistic savings.
7. Use Saving Apps to Lock Your Money
“Out of sight, out of reach.” When you have easy access to money, spending becomes easier. Making access to your money less convenient forces you to think before spending.
Look for savings apps that work in your location. Some allow fixed savings for a set period and even pay interest when you stay consistent.
8. Track Where Your Money Goes
Tracking your expenses helps you identify leaks and block them. These leaks could be unnecessary bank charges, auto-renewed subscriptions, or impulse purchases. Once identified, you can redirect that money into savings.
9. Avoid Emotional Spending
Emotional spending happens when you make purchases based on feelings rather than needs. This could come from excitement (like getting a salary raise) or from negative emotions such as loneliness.
Effects of emotional spending include:
- Regretting purchases
- Accumulating debt
- Deviating from your budget
Fix it by:
- Taking a timeout when triggered. Don’t hit “order” immediately.
- Recognizing social media pressure (FOMO, Instagram reels, lifestyle posts) and ignoring it.
- Staying focused on your budget and target.
10. Fix Your Debts
It can be hard to completely avoid debt, especially with the rising cost of living. But debt can be managed wisely. A good way to fix debt is by understanding your debt.
- Make a list of all your debts, arranged in any order that works for you (highest to lowest, or by interest rate).
- Identify which debts drain your finances the most.
- Choose a repayment approach that fits your budget.
If paying off seems impossible, consider side hustles to earn more and settle debts faster.
Summary
Many people ask: “How much should I save?” The truth is, the amount doesn’t matter as much as building the habit of saving.
There’s no universal rule—some save 50%, 30%, 20%, or even 10% of their income. Your savings rate depends on your earnings, your goals, and your lifestyle.
Start with what you can, automate your savings, and stay consistent. Over time, you’ll find the right rhythm for your financial journey. Start applying these tips today to grow your financial future.