5 Helpful Tips on How to Start Saving

Hey guys and welcome to another Finance Friday which means that it’s the end of another month. It’s crazy to think that we’re almost halfway through the year. This year flew by so fast; I still haven’t got my feet fully planted on the ground at all. One of my new year’s resolutions this year is to save up an emergency fund of at least $1000 by the end of the year. It doesn’t sound like much, but since I am a full-time student and recently left my job, that can be a tough goal for me.

On today’s post, we are gonna talk about some saving tips that I have learned from the past years and share it with you guys. Just a reminder that this is in no way shape or form professional advice, so take this with a grain of salt and let this be a starting point towards seeking professional financial advice.

I will explain 5 tips that you can use to help build up your savings. I know money can be a touchy topic. However, I want you to know that no one is perfect in this journey. We all go through a financial crisis at some point. All of us have made mistakes regarding our finances and it’s okay to fuck up sometimes. It may be hard to build up again, but if you have determination, discipline and willingness to learn and further your knowledge in handling your finances, you’ll be okay in the end. So, let’s get started:

1) 90:10 Ratio

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The first thing we need to learn is the 90:10 ratio. What is it? Before spending on anything else, allocate 10% of your income towards yourself. Next, you allocate 2 of that 10% towards personal protection needs like life insurance and critical health insurance. You can then allocate the remaining 8% towards your personal saving goals. For the rest of the 90%, you are allowed to spend that much of your income towards bills and other expenses.

Some of you may have heard of this method or some type of variation like the 80:20 ratio. There are various opinions out there debating which saving method is the best, and it honestly depends on the person’s situation. I wanted to introduce you to the 90:10 method because I know how hard it is to start saving when you’re not in the habit of saving. When trying to build habits, we need start slow and small. So, for those who are just getting started on building up their savings, start with setting aside 10% of your income first and once you start getting used to it, then you can start increasing how much money you put aside into your savings.

Of course, we have to remember that circumstances change. If you find that this method doesn’t work for you anymore or doesn’t work for you at all, do your research. There is something there for you that fits your situation.

2) Write down your savings goal

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We all have savings goals whether it’s saving for a new car, a luxury purse, or your children’s college fund. Oftentimes, we’re just used to setting aside money and forget what we’re even saving for in the first place. What usually happens with this is that we become more compelled to take money out because we forget its purpose. Sometimes goals can seem unachievable and just up in the air. Writing your goals down helps to solidify your purpose for saving. You can look back on it every now and again so you are reminded of these goals. It can help you stay on track with your journey.

3) Track your expenses and consider what you can cut back on

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One of the best ways you can do to maximize your savings is by tracking your expenses. At the end of each month, list down all of your expenses for that month. This will help you see how much you’re spending on what. From there, you can now determine what expenses you can cut back on. If you’re always ordering food for lunch, you can try minimizing your expenses by making and bringing your own lunch instead. There are a multitude of budget trackers out there. But if you want a free one, fill out the form down below to get your own copy of our free budget tracker! For more helpful tips, check out our posts on how to start and keep track of your budget and 5 strategies on how you can manage your budget monthly as well as our purpose and goals of this budget tracker! Moreover, if you need tips on how to keep track of your goals, we have a post for that too 😉

4) Zero-waste alternatives

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This might sound surprising, but zero-waste alternatives can actually save you some dolla dolla billz!! Say for example buying a cup of coffee everyday. You’re not only contributing to waste but you’re also wasting your money on expensive coffee every single day. Instead, you can opt to make your own cuppa joe at home. Little things like this may sound so insignificant, but if you add them up altogether, you’ll realize how much money (and waste) you’re actually throwing away. If you’re interested to learn more about zero-waste alternatives, check out our post on things you should know before going zero-waste.

5) If you’re an impulsive buyer, sit on it for a few days

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Last but not the least… please don’t buy anything that you don’t need. We emphasize this time and time again –DON’T BUY ANYTHING UNNECESSARY. I am guilty of being an impulsive buyer, especially if there’s something that really catches my eye. However, if you’re really dedicated to reaching your goal and you see that shiny thing on the shelf calling out your name, look and walk away. Sit on it for a few days. Try to weigh in on whether it’s a want or a need. If it’s a want, does your budget allow it and is it a reasonable purchase? If you still think about it and are sure that you still absolutely want it on the 3rd day, then you can get it. Honestly, most of the time, we just forget about these random things that catch our eye. You know that I’m right. We’ve all been there before.

Those are the 5 helpful tips that can help you build your savings. It might sound like a lot of work and it is, but it is going to be so worth it at the end. Remember, make sure your first savings goal is to build your emergency fund for those unexpected circumstances. Whether it’s $500 or $5000, something is better than nothing. You know that you are one step closer to financial stability if you’re able to stick with the habit of saving!

Let us know if you're trying out these tips and if you found these helpful. We'll see you on the next post!