When it comes to saving money, it’s important to get clear on your goals and a strategy that works for you. These tips can help you have step by step savings that will give you a solid foundation for reaching your financial milestones.
Start by budgeting and tracking your spending. This can be done with a simple spreadsheet or free online spending tracker.
1. Set a goal
Saving money is often easier said than done, but setting clear goals can help you stay focused on what matters most and steer clear of overspending. To set a goal, first assess your financial situation. Then, prioritize what you want to save for, how much you need to save and a time frame to achieve it.
Next, decide whether you should focus on increasing your income or reducing expenses to meet your savings goal. If you need to reduce your expenses, use the SMART framework to identify non-essential items and set a target amount that you can cut from each one.
Once you’ve identified your goal, add it to a budget worksheet and track your progress. This will help you stay on track and remind you when you’re falling off the wagon.

2. Track your spending
One of the easiest ways to keep your spending in check is to track it. Whether you use a pen and paper or a spreadsheet, tracking is a great way to learn how you spend money, and what opportunities you can take to cut back.
To start, make a list of your monthly expenses and categorize them by category. This will help you identify where you can cut back, and what your average spending is for each expense category.
Next, set up a budget and stick to it. By tracking your spending, you can see when you’re spending more than your budget allows, and what that means for your financial goals.
There are a variety of ways to track your spending, including using envelopes and setting up separate bank accounts for fun money. The most important thing is to find a system that works best for you.
3. Set up automatic savings
Automatic savings can make a big difference. It can help you meet your savings goals without having to think about it at all.
When you set up an automatic savings plan, a portion of your paycheck goes straight into a dedicated fund for savings. This eliminates the temptation to spend it on something that you don’t need.
This approach also helps you build savings over time by establishing good habits that will stick.
Another benefit of automated saving is that it can reduce the number of late fees you pay. It also ensures that your bills are paid on time, which is a vital step toward meeting your savings goals.
A recurring deposit from your checking account to your linked savings account can be set up by most banks. It can be made weekly, biweekly or monthly, depending on your schedule and personal preference.
4. Make saving a habit
If you want to save money on a regular basis, it needs to become a habit. This is the best way to build your savings and keep it growing.
The easiest way to cultivate a saving habit is to make it part of your lifestyle. That means paying attention to your spending, curbing it and bringing it in line with your income.
Start by tracking your spending to see where you can cut costs. This can include eliminating discretionary spending, such as coffees or meals at restaurants.
Once you’ve identified your budget, set a goal for how much you’ll need to save and when you’ll need it. This helps you plan your strategy and choose the right accounts for your goals.
A goal will also help you track progress. It will give you a sense of achievement and reinforce the habit.