Money
Fourteen ways to start saving, for people who never have
Saving is not a personality trait. It is a set of small arrangements, most of which you only have to set up once.
ShePays Team7 min read
Some people save instinctively. Most do not, and treat that as a character flaw. It is not. Saving reliably has far more to do with how your money is arranged than with willpower, and arrangements can be changed in an afternoon.
Start with the structure
- Write a budget. List what is essential, what is not, and what you earn. The 50/30/20 rule is a reasonable default: half for needs, three-tenths for wants, a fifth for saving.
- Automate it. Set a standing instruction on the day your income arrives. Money you never see is money you do not spend.
- Pay bills on time. Late fees are the most avoidable expense there is, and they compound into credit damage.
- Build an emergency fund first. Before any investment, put aside enough to cover a few months of essentials, somewhere you can reach quickly.
Automating a small amount beats intending to save a large one. The intention sits in a bad month. The standing instruction does not.
Then reduce the leaks
- Clear expensive debt first. Credit card balances and short-term personal loans cost more than almost any investment earns.
- Audit your subscriptions. Most people are paying for at least one thing they stopped using.
- Review recurring bills. Phone plans, broadband and insurance are usually cheaper if you ask or switch.
- Cut transport cost where you can. Shared travel and planned trips add up over a year.
- Reduce the electricity bill. Efficient appliances and LED lighting pay for themselves.
- Cook more than you order. Delivery is the single largest avoidable line item in most urban budgets.
Then change how you buy
- Wait before large purchases. A five day gap between wanting and buying removes a surprising share of purchases entirely.
- Buy staples in bulk where they keep, and only where you will genuinely use them.
- Shop with a list. It is an old suggestion because it works.
- Set a goal with a name. Saving towards something specific is far more durable than saving in general.
Worth knowing
Start with two of these, not fourteen. The automation and the emergency fund are the two that make the rest easier.
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