What To Do To Start Saving Money

I remember the first time I realized I needed to start saving money. It was during a conversation with my older brother, who had just bought a house and was talking about how he had saved up for a down payment. I was 24, living in a shared apartment, and I had never even thought about having a savings account. That conversation was a wake-up call. I had no idea where to start, and the idea of saving money felt distant and overwhelming. But I decided to take the first step.^[1]

I opened a savings account with a small amount of money — just $20 — and set up automatic transfers from my checking account. It felt insignificant at first, but over time, that habit grew into something meaningful. I started tracking my expenses, cutting back on unnecessary purchases, and prioritizing needs over wants. It wasn’t always easy. I learned that saving money doesn’t require a huge income or a lot of time — it just requires consistency and a few simple changes to your daily routine. (one in a, dfi.wa.gov)^[2]

Now, I’m in a much better financial position, with emergency savings, a rainy-day fund, and a clearer understanding of what it means to what to do to start saving money. I’ve tested different strategies, made mistakes, and refined my approach over the years. The key takeaway is this: saving money is a journey, not a destination, and the first step is always the hardest — but once you start, it becomes easier than you think.

Start Small, But Be Consistent

As of August 2026, I began by saving $20 every week, and it didn’t feel like much at the time. But over the course of a year, that’s $1,040 — and that’s just the beginning. Consistency is key because even small amounts add up over time. The first step is to choose an amount that feels comfortable to you, whether it’s $10, $20, or even $50 a week. The goal is to make saving a habit.

I used a savings account that had no minimum balance requirements, and I set up an automatic transfer from my checking account to my savings account every week. This way, I didn’t have to think about it — the money was moved automatically. This habit took a few weeks to get used to, but after a while, it felt natural.

I also used an app called YNAB (You Need A Budget), which helped me track my spending and allocate specific amounts to savings each month. It was a game-changer for me because it forced me to think about where my money was going. The first month, I didn’t know where my money was disappearing, but after a few weeks, I started seeing patterns and making better financial decisions.

Part of our Saving money apartment guide.

Track Every Penny You Spend

I used to think that I was saving money by not buying expensive things. I was still spending a lot on small, unnecessary purchases — like $10 coffees every day and $30 monthly subscriptions I didn’t use. I had no idea where my money was going until I started tracking it.^[3]

I used a simple app called Mint, which automatically categorized my spending into things like groceries, entertainment, and transportation. After a few weeks, I saw that I was spending $300 a month on things I didn’t need. That was a wake-up call.

Once I had a clear picture of my spending, I made intentional changes — like switching to cheaper coffee shops, canceling unused subscriptions, and buying groceries in bulk. These small changes added up to hundreds of dollars a month that I could now save.

Track your money, or it will track you.

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Create a Budget That Works for You

I used the 50/30/20 rule to create my first budget — 50% of my income went toward needs, 30% toward wants, and 20% toward savings and debt. It was a simple approach, and it helped me understand where my money should go.

I used a spreadsheet to track my income and expenses each month, and I adjusted my budget as needed. For example, if I had a month where I spent more on groceries, I would reduce my spending in other areas to stay within my budget. This flexibility was important for me because it allowed me to adapt to changes in my income.

I also made sure to include unexpected expenses in my budget, like car repairs or medical bills. This helped me build an emergency fund, which was crucial when I had a surprise car repair bill a few months later. Having that fund in place gave me peace of mind and prevented me from going into debt.

“I remember the first time I realized I needed to start saving money.”— Managing Money as a Digital Nomad editors

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Automate Your Savings

I set up automatic transfers to my savings account every week, which helped me avoid the temptation to spend my savings money. This was especially important during times when I was tempted to use my savings for things like travel or unexpected expenses.

I also used a high-yield savings account, which earned me a little extra money each month. Even though the interest rate was low — around 2.5% — it helped my savings grow faster than they would have in a regular savings account.

Over time, I realized that automating my savings was the easiest way to build wealth. I didn’t have to think about it — the money was moved automatically, and I could focus on other things. This habit made saving money feel effortless.

Avoid Debt at All Costs

I used to think that having a credit card was a good idea, but I quickly learned that it was a trap. I was constantly tempted to spend money I didn’t have, and the interest rates were astronomical. I had to pay back $1,000 in credit card debt over the course of a year, which was a huge hit to my savings.

I decided to avoid using credit cards for anything other than emergencies. I also started paying off any existing debt as quickly as possible. I used the debt snowball method — paying off the smallest debts first — which gave me a sense of accomplishment and kept me motivated.

After paying off my credit card debt, I felt a huge weight lifted off my shoulders. I was no longer worried about interest rates or late fees. I had more control over my money, and it was easier to save.

Invest in Yourself

I realized that I was spending most of my money on things that didn’t help me grow — like expensive takeout, concerts, and shopping. I decided to invest in myself instead by taking online courses, reading books, and attending workshops. These investments didn’t cost a lot — $100 here and $50 there — but they had a huge impact on my career and earning potential.

I took an online course in digital marketing, which helped me land a higher-paying job. I also started reading books on personal finance, which gave me valuable insights into saving money and building wealth. These investments paid off in the long run.

Investing in yourself doesn’t have to be expensive — it can be as simple as taking a course or reading a book. These small investments can lead to big returns in the form of higher income and greater financial stability.

Invest in yourself — it’s the best investment you can make.

Review and Adjust Your Plan Regularly

I used to think that once I had a savings plan in place, I didn’t need to look at it again. But I quickly learned that my life was changing — I was earning more money, spending more on things like travel, and needing more savings for emergencies. I realized that I needed to adjust my plan regularly.

I started reviewing my budget and savings plan every month. I would check where my money was going, see if I was saving enough, and make changes as needed. Sometimes, I needed to increase my savings contributions, and other times, I had to reduce my spending in certain areas.

Over time, I found that adjusting my savings plan regularly helped me stay on track and achieve my financial goals. It wasn’t always easy, but it was necessary for long-term success.

What To Do To Start Saving Money