You’re not alone if you live paycheck to paycheck with little to no savings. Many struggle to set aside money, often feeling there’s not enough left after covering expenses. But the good news is that small, intentional changes can make a big difference.
Building a strong savings habit isn’t about earning more but about making smarter financial decisions. Whether you’re just starting or looking for better strategies, here are a few practical steps to help you take control of your finances and grow your savings over time.
1. Prioritize Savings Over Expenses
Many people make the mistake of saving only what’s left after spending—often leaving little to nothing behind. The key to breaking this cycle is simple: save first, then spend.
How can you do this?
Decide on a fixed amount or percentage of your income that you can comfortably save each month. The moment you receive your paycheck, set aside that savings before paying for anything else.
By treating savings as a non-negotiable expense, you build financial discipline and ensure you’re consistently growing your money.
2. Budget Your Money
If you don’t tell your money where to go, you’ll always wonder where it went. Without a clear plan, spending becomes unpredictable, and your income never seems enough to cover expenses.
A budget helps you take control by allocating your money to essentials, savings, and other priorities. It ensures that every shilling has a purpose, making it easier to manage your finances and avoid unnecessary expenses.
3. Track Your Expenses
You can’t control what you don’t measure. Tracking your expenses is the only way to truly understand where your money goes.
By keeping a record of your spending, you can see whether you’re sticking to your budget and identify areas where you might be overspending. It also gives you valuable insights into your financial habits and money personality, helping you make better budgeting decisions and improve your overall financial health.
4. Automate Your Savings
One of the easiest ways to build a consistent savings habit is to automate the process. Setting up a standing order ensures that a portion of your income is automatically transferred from your checking account to your savings account before you even get a chance to spend it.
This removes the temptation to skip saving and makes the process effortless. Look for the most cost-effective way to set up automatic transfers so that you can grow your savings without extra fees eating into your money.
5. Avoid Savings Challenges and Rigid Saving Rules
Saving rules like “save 10% of your income” assume that income and expenses are static. In reality, both change over time, and your saving rate should adjust accordingly. It’s okay for your savings to fluctuate throughout the year.
Savings challenges, like the 52-Week Savings Challenge, can be exciting and motivating. But what happens if you can’t save for a while due to income loss or unexpected expenses? Many people lose motivation and stop saving altogether.
The best savings strategy is to save what you can, whenever you can. When your income increases relative to your expenses, save more. When your income drops or essential expenses rise, save less. The key is consistency, not rigid rules.
6. Save in an Avenue with Good Interest on Savings
Saving money in a regular bank account that earns little to no interest can be discouraging. Your money sits idle, losing value over time due to inflation.
To make the most of your savings, consider avenues like Money Market Funds (MMFs) that offer competitive interest rates, often above the inflation rate. As you see your savings grow, you’ll be more motivated to keep saving and build long-term financial security.
For MMF recommendations, you can sign up for an account with either CIC MMF or SANLAM MMF.
7. Increase Your Earning Potential
Savings follow a simple formula: Savings = Income - Expenses
While there’s only so much you can cut from your expenses, there’s no limit to how much you can earn. If your income is too low, saving becomes a struggle because survival takes priority. You may have to make extreme sacrifices just to put money aside, and for someone barely meeting their basic needs, saving isn’t even a consideration.
Instead of focusing solely on cutting costs, work on increasing your earning potential. Look for ways to boost your income—whether through skills development, career growth, side hustles, or investments. The more you earn, the easier it becomes to save without straining your daily life.
Final Thoughts
Saving money doesn’t have to be complicated. By making small but intentional changes—like prioritizing savings, budgeting, tracking expenses, automating savings, and choosing the right saving avenues—you can build a strong financial foundation. These simple steps may seem minor, but over time, they have the power to transform your financial future. If you’re ready to take control of your money and start building lasting wealth, sign up for my Money Mastery Masterclass or check out this article on the right way to start investing to continue your financial education.