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When most people think about how to save money, they think about cutting back—but it’s about so much more than that. Saving is what builds the financial cushion that gives you freedom and peace of mind. Whether you’re creating an emergency fund, planning a big purchase, or just wanting more security, the goal is to build habits that make saving automatic and sustainable.
The good news? You don’t need a financial overhaul to start. With a few money saving tips, smart adjustments, and a clear plan, you can build momentum that compounds over time.
Here, we explore ways to save money, while building habits that become part of your bigger financial plan.
Step 1: Know Where Your Money Goes
You can’t improve what you don’t understand. Before setting goals, focus on expense tracking: spend some time examining your spending habits to see where your money actually goes—not where you think it does.
Use a budgeting or money-saving app, spreadsheet, or even just a notebook. Sort expenses into needs (rent, groceries, utilities) and wants (dining out, subscriptions, entertainment). This awareness alone can be eye-opening.
After that, see how your spending aligns with the 50/30/20 rule: 50% to needs, 30% to wants, and 20% to savings or debt. It’s a simple framework that shows where you might be overspending, and helps you strike the right balance between feeling fulfilled today and secure for your future.
Step 2: Define Your Savings Goals
Saving without a clear target makes it hard to measure progress. You might be moving forward, but without a clear goal or finish line, it’s easy for motivation to fade.
Start with an emergency fund covering three to six months of expenses. It’s your safety net for surprises like medical bills or car repairs. Once you’ve successfully funded that, set specific short- and long-term financial goals. Here are a few examples:
Short-term (under 3 years): Vacation fund, new furniture, holiday spending, etc.
Long-term (3+ years): Down payment, retirement, education savings, etc.
Specific goals make saving feel tangible. “I should save more” turns into “I’m saving for this,” which makes it easier to stay on track.
Step 3: Automate Your Savings
The easiest way to save? Take willpower out of the equation. Set up auto-transfer rules, if you can, to instantly move a set sum from your checking to your savings right after payday. Some employers may even let you split your direct deposit so a portion of your salary goes straight into savings by default. Even $50 or $100 per pay period adds up fast.
As your income grows, gradually increase those automatic deposits before your spending adjusts. Consistency is what matters most—steady contributions beat occasional big deposits.
Step 4: Keep Savings in the Right Place
Where you save matters as much as what you save. When choosing where to put your money, think about two things: how quickly you can access it, and how much it can earn while it sits.
A high-yield savings account is ideal for your emergency fund. It offers easy access to your cash and while earning more than you would by parking your cash in a traditional account—so your money grows while staying within reach. (For example, the Sunward reverse-tier Power Money Market account offers 5.04% APY on your first $2,500 in deposits, and a blended rate after that. Compared to the national average savings account yield of 0.62% APY (as of December 2025), the difference in potential earnings is substantial to say the least.)
For longer-term goals, look into term certificates or money market accounts. They usually offer higher returns in exchange for keeping your money untouched for a set period, which makes them better suited for savings you won’t need right away.
Step 5: Reduce Expenses Intelligently
Cutting back doesn’t mean cutting out everything you enjoy. The key is to be intentional and focus on spending smarter versus just trying to spend less.
Trim non-essentials. Review your subscriptions and cancel what you don’t use (or what you might have forgotten about). Batch errands to save gas. Make coffee at home a few days a week. Small tweaks like these can feel minimal, but end up saving hundreds annually.
Shop smarter. Avoid impulse spending by making shopping lists before you buy anything, or by waiting a day or week before making non-essential purchases. Always take the time to compare prices, as well, and consider opting for generic over name brand products when you can.
Avoid lifestyle inflation. When your income increases, don’t upgrade everything right away. Keep living at your current level and funnel the extra into savings. (Again, this is where automated savings come in handy.)
Step 6: Tackle High-Interest Debt
Debt and savings are two sides of the same coin. High-interest debt—especially credit cards—can quietly drain money that you’d otherwise be able to put aside. To help, prioritize paying debt down using one of these methods:
Debt snowball: Pay off the smallest balance first for quick wins.
Debt avalanche: Pay off the highest interest first to save more long-term.
Both methods work, so it’s just about choosing the one that keeps you motivated. Once a debt’s gone, redirect those payments to savings—you’ll build wealth faster than you think.
Step 7: Oversee & Adjust
Saving isn’t “set it and forget it.” Life changes—income shifts, expenses fluctuate, goals evolve—so your plan should too. Make it a habit to check in on your finances regularly (even daily) just to keep your progress top of mind and ensure that you can adjust your plan as you go: increase your savings contributions as your salary grows, pay down new debt before it piles up, and realign your goals as your priorities shift.
This mindset is also important when a windfall comes your way, like a tax refund, bonus, or cash gift. Because it’s money you weren’t expecting, it’s easy to overspend. Direct at least half toward savings or debt before you treat yourself. It’s one of the simplest ways to turn unexpected income into lasting progress.
Building the Habits for Long-Term Saving
A clear strategy helps boost your savings, but building strong savings habits can be the key to solidifying your efforts and amplifying savings over time:
Practice mindful spending: Before buying something, pause and ask: “Does this align with what matters most to me?” That small check-in keeps your choices intentional instead of impulsive.
Try temptation bundling: Pair a savings task with something you enjoy, like listening to your favorite podcast while reviewing your budget, or treating yourself to a nice coffee after transferring money to savings.
Get organized: If you’re saving towards multiple goals, consider creating separate accounts or labeled subaccounts (“buckets”) for each goal—vacation, home repairs, car fund.
Track small wins: Notice your progress—a consistent savings streak, a paid-off balance, or a month without impulse buys. Celebrating small wins builds momentum and keeps you motivated until you hit bigger goals or milestones.
Find accountability: Join a savings group or partner with a friend. Share updates, celebrate wins, swap frugal living ideas, and encourage each other when motivation dips.
Secure Your Future: Start Saving Smarter
Financial security doesn’t require a six-figure salary or extreme frugality. It takes consistency, a clear plan, and commitment to your future self. Every dollar saved brings you closer to freedom and flexibility. The key to saving smarter is having a strategy, starting small, and building disciplined habits over time until it becomes second nature.
Ready to take the first step toward smarter saving? Explore Sunward’s tools for helping you save smarter—from high-yield savings options to subaccounts that make organized saving easier than ever.
FAQs
How much should I save per month?
A good rule of thumb is to save around 20% of your income if you can—but consistency matters more than the number. Start with what feels realistic, even if it’s just 5–10%. As your income grows, gradually increase your savings rate so it becomes a steady habit rather than a one-time effort.
What if I don’t have a high-yield savings account?
You can still start saving right where you are. The key is building the habit first. Once you have some momentum, compare options—many online banks and credit unions offer high-yield accounts with no fees or minimums. Switching later is easy and can help your money earn more without extra effort.
How can I save with a low income?
Focus on building progress with small, repeatable actions. Automate transfers, round up purchases into savings, or cut one or two expenses that don’t add much value. Even saving $20–$50 a month builds the discipline and confidence to save more later.
Can I save while in debt?
Yes—and you should. Build a small emergency fund first (aim for a realistic $500–$1,000 instead of the typical 3–6 months of living expenses) so you’re not relying on credit cards when surprises come up. Then, focus on paying down high-interest debt while continuing to save a little each month. Once your balances drop, redirect that freed-up money into savings.
How do I keep saving motivation?
Tie your goals to something specific and meaningful like a trip, a safety net, or more freedom in your choices. Track small wins, celebrate milestones, and check in on your progress regularly. Saving isn’t just about money; it’s about building momentum toward a life that feels more secure and flexible.
