business resources
A Beginner’s Guide to Saving Money
13 Aug 2026
Saving money is an essential part of a well-rounded financial life. Savings can be used to pay for a sudden emergency, enable you to make a desired career change, or cover your next vacation. However, thanks to a high cost of living, debt, or other factors, setting aside money each month is often easier said than done. If you’re ready to finally break through the noise and make saving part of your life, here are four tips to help you get started.
1. Outline your current financial state
Instead of stashing away $20 a week on a whim, consider creating an outline of your current financial state and where you’re going. Start by creating a comprehensive financial picture with a list that includes:
- Income (including side hustles and part-time work)
- Expenses (including fixed expenses like housing, transportation, and utilities, and variable expenses like going out to eat, entertainment, and travel)
- Debt (including secured debt like a mortgage or auto loan and unsecured debt like credit cards, personal loans, and student loans)
- Savings (including traditional and high-yield savings accounts, certificates of deposit (CDs), and money market accounts)
Based on these four numbers, you’ll begin to understand if and how much you can afford to save. For example, if you make $4,000 per month and spend $3,000 on expenses and debt, you may opt to add $500 to a savings account to build your emergency fund and put $500 extra each month toward debt. On the other hand, if you’re spending $4,200 each month, you’ll need to find ways to cut down expenses before you save.
2. Create a budget that includes savings
Once you understand how much you’re earning and spending, it’s time to create a budget that includes savings. If you’re currently spending more than you make each month and using a credit card or other debt to cover the difference, you’ll need to examine spending habits to figure out how to curb extraneous spending and free up room for saving. If you don’t have a budget, consider using one of these three popular budgeting methods:
- 50/30/20: With this budget system, you’ll allocate 50% of your budget towards fixed costs or essentials, 30% toward things you want, and 20% toward savings.
- Anti-budget/Pay yourself first: With the anti-budget, you’ll pay into your savings first according to your goals, then spend whatever else remains without getting too granular on where it goes.
- Zero-based budget: This more detailed budget requires you to give every dollar a job. You’ll create line items for each area of spending and ultimately track your spending and saving until nothing remains at the end of the month.
The best budget is the one you’ll stick to. So don’t be afraid to switch your strategy if the budget you originally chose doesn’t fit your lifestyle. If you need a helping hand, a financial professional, like a planner or advisor, can support you in building a budget that works for your unique situation.
3. Make saving automatic
There are two ways to make saving automatic. One, set up an automatic deposit from your paycheck or an automatic transfer from your checking to your savings. Once you’ve determined how much money you’ll save each month and crafted the ideal budget to support saving money, it’s time to take the guesswork out of it. Often, nothing gets saved when people wait until the end of the month to save what’s left over. Creating automatic transfers from your checking to your savings account when you get paid can ensure you’ll stick to the plan and build your savings month after month.
The second option is to get a smart savings app, like Set & Save by Oportun. First, you tell it your goals, which can be big or small, from concert tickets to a rainy day fund. Then, it gets to know your habits like when you spend and when you deposit. And then it automatically moves money into savings toward each goal. Your budget will barely even notice, and you don’t even have to think about it. When it’s time to buy your concert tickets, you’ll just transfer the money right back into your checking account.
4. Reassess your savings plan regularly
At least once per quarter, review your savings plan to ensure you’re on track to meet your goals. As circumstances change, you’ll need to adjust your budget and your savings approach accordingly.
For example, say you’re saving for an emergency fund and want it to cover six months of living expenses. If you get a raise and you’re suddenly making and spending more, you’ll need to update your savings goal to cover your new higher cost of living. Similarly, if you’re saving toward a dream vacation and have found a travel companion to split the cost of lodging, you may want to adjust your savings to meet the goal in less time or decrease the amount you’re setting aside each month.
The bottom line
Like many aspects of personal finance, how you choose to save money is entirely personal. But learning to save money effectively is a financial tool that will serve you for life. Once you clearly define your goals, create a budget that factors in savings, and make it automatic, you’ll be able to confidently move forward in knowing your savings account is there to support you in a time of need. Don’t forget to regularly reassess your savings plan and ensure it aligns with ever-changing financial goals and life circumstances.
