How to Save Effectively: 7 Insanely Easy Tips

how to save money

Are you looking for ways to save more? In today’s ever-changing economic landscape, knowing how to build up one’s savings has become a universal concern. Whether you’re facing economic hardship or simply want to secure a better financial future, understanding the art of saving money is a crucial skill. In this blog post, we’ll explore practical tips, strategies, and actionable steps on “how to save effectively.”



A couple of months ago, I stumbled upon a Japanese channel on YouTube on the streaming platform’s recommendation. The title of the specific video is “収入が少ない我が家の暮らし方,” meaning “Our way of living as a low-income household.” 

In the video, the YouTuber shares how she and her family practice frugality in their daily life. 

Interestingly, even though the video was primarily in Japanese (English translation is available), there were many English or non-Japanese comments. (Unfortunately, the comment section has been turned off now.)

I remember many viewers (presumably) from around the world expressed how they related to the video. From those comments, I kind of understood how inflation and economic hardship had hit people in many countries. 

How to Save Money: A Universal Concern

It has become clear to me that “how to save money” is now a universal concern. It’s not exclusive to less developed countries. 

I’m not sure whether frugality is in my blood, or I’ve acquired the habit because of my upbringing. In any case, it’s thanks to my parents, who are thrifty people and oftentimes, to the extent of penny-pinching.

7 Tips to Help You Save Effectively

Although I regretted not learning more about money management when I was younger, I’m grateful for developing a savings habit since I was a child. 

Practicing frugality and saving money alone is by no means enough to achieve financial freedom. But it’s the first step. It’s especially true for the lower income groups and those who do not come from wealthy families.

Save for later ⤵️

easy money saving tips

#1 – Set Clear Savings Goals

Like any other task in the world, the first step is always the toughest. Frugality requires discipline, consistency, and keeping our desires in check. For some, all these may run counter to their nature. 

To make sure that we achieve our goals, we have to first define what our goals are. Before we ask “how to save effectively” let’s ask ourselves the why and what questions first. 

Why do we save? What do we save for? 

Are you saving for retirement, investment, a child’s education fund, an emergency fund, a downpayment for a home, a vacation, or other aspirations? 

Having a clear objective and direction will keep us focused and motivated.

#2 – Track Your Expenses

To answer the “how to” questions, we need to first examine where our money goes. The best practice is to keep a record of all our expenses. 

I’ve been keeping this habit for years. Thanks to this habit, I know how much I need each month for my basic necessities. When I lost my only regular client and income a few months ago, I could easily estimate how many months I can sustain without the need of tapping into my savings and investment accounts. 

By tracking our expenses, not only can we know how much we spend every month we can also gain better insights into our spending patterns. For example, where our money has mostly gone?

To make it easier for you to start tracking, here is a monthly expense tracker spreadsheet for you to download for absolutely FREE.

#3 – Cut Unnecessary Expenses

This task will become easier one or two months after you start tracking your expenses.

First, list out all your expenses and the amount you spent. Then, divide them into categories like food, transportation, everyday items, housing, utilities, etc. 

Review the list and identify unnecessary or discretionary spending that you can reduce or eliminate. For example, if you think you want to cut down your spending on food, you may consider preparing and bringing your lunch box and eating out less often. 

Also, check if you have subscriptions that you barely use or don’t use at all. Consider canceling those subscriptions or switching to a cheaper alternative.

About a year ago, I downgraded my broadband plan from a 500 Mbps plan to 100 Mbps. The Internet connection has not slowed down at all. After all, I don’t have so many devices using the Internet at the same at home. The decision has saved me about 30% of my spending on broadband every month.  

#4 – Create a Budget

A budget can help you plan your spending and make sure you stay on track to meet your savings goals.

If you don’t know how to start, here is a monthly budget planner that can help you plan and save effectively. Click the “Yes! Send Me The Free PDF” button below to download it for FREE.

I also recommend the following six steps to create a feasible budget:

  • Track all sources of income, including salary, freelance work, or side hustles.
  • List and prioritize your fixed expenses, e.g. rent, utilities, insurance premiums, and loan payments.
  • Estimate variable expenses, e.g. groceries, transportation, dining out, entertainment, and personal care.
  • Allocate a specific amount for savings goals, such as emergency funds or retirement.
  • Dedicate a portion of your budget to debt repayment if you have outstanding debts.
  • Set aside a small amount for miscellaneous or unexpected expenses.

#5 – Automate Savings

Every month, when you receive your paycheck, do you spend or save first? I believe most people fall into the first category. In fact, me too. 

However, when I heard about the recommendation of setting aside a portion of your income for savings before you spend, I thought it was a smart idea. It’s especially crucial for those who tend to spend more whenever they have more money.

Once you have established your budget, you may fix a sum that you can and want to save every month. Then, set up automatic transfers to a dedicated savings account. In this way, you can make saving a priority without relying solely on willpower.

#6 – Practice Mindful Spending

Whenever you want a non-essential item, reflect on yourself if it aligns with your long-term financial goals. 

It’s wise to remind yourself to wait for a day or two or even longer to evaluate if you really need or want it. Sometimes, we will see our desire subsides and the urge to buy something diminishes after a day or two. In this way, we can avoid impulsive purchases.

Based on personal experience, it is particularly necessary to practice mindful spending when we travel abroad. Otherwise, we may end up buying a lot of stuff that we will never use or barely have a chance to use.

Don’t you agree, ladies? *Wink* *Wink*

#7 – Set Small Realistic Savings Goals

Like writing, saving money is not a fun-filled and exciting task that we can adopt it as a habit if we’re not motivated enough.

How to stay motivated? We will probably feel motivated when we achieve our goals. So how to achieve our goals easier and faster? Simple. Just break our ultimate goal down into many smaller and more realistic goals!

For example, if your goal is to save $10,000. You may break it down into 10 smaller goals of saving $1,000. Celebrate and reward yourself every time you reach a new $1,000 mark.

Save for later ⤵️

saving money on a low income

Increase Income to Save More

If you still find it hard to achieve your saving goals even after implementing the tips above, you may consider looking for ways to boost your income. 

You may consider taking on some freelance work or starting a side business. The additional income from those side hustles can be directly allocated to savings.

Why not start a blog to monetize it? Whether you’re a full-time employer, a homemaker, a student, or a retiree, blogging can be an effective and flexible way to generate some extra income for yourself and your loved ones. 

Have no idea how to start a blog? Don’t know how to write a blog post? Check out my easy-to-follow step-by-step guides to starting a blog and self-hosting a blog with WordPress for absolute beginners and my essential writing tips for beginner bloggers.

Saving more is a journey that requires discipline and commitment. Always remind yourself that every dollar you save today is an investment in a better tomorrow. By staying committed, you’ll see your savings grow and pave the way to financial abundance.

I would love to hear your thoughts on how to save effectively! Have you tried any of the tips mentioned in this post? Do you have any additional strategies or personal experiences you’d like to share? Leave a comment below and let us know how you approach saving money. Your insights might inspire and help others in their own financial journeys.

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