Kickstart Your Savings: A Practical Guide to Gaining Control of Your Finances

Introduction: Saving is easier than it seems

Have you ever wondered how some people manage to have a financial cushion while others live paycheck to paycheck? The difference isn’t how much they earn, but how they manage their money. Learning how to save is one of the first steps toward financial stability—and the good news is that it’s never too late to start.

In this article, I’ll walk you through how to start saving from scratch, even if it feels like you don’t have enough right now. With practical strategies, examples, and useful tips, you’ll be ready to take the first step toward a more peaceful, debt-free future.

If you want to dive deeper into this topic like I did, I highly recommend the “Basic Personal Finance Course” by Jimena Monge. Now let’s get back to our guide.

Why is saving important?

Before diving into strategies, it’s important to understand why saving matters. Here are a few strong reasons:

• Emergencies: A savings fund helps you handle unexpected events like illness, car or home repairs, or job loss.

• Personal goals: Traveling, studying, buying a home, or starting a business all require money—and saving is the safest path to get there.

• Avoiding debt: Saving prevents you from relying on credit for surprise expenses.

• Peace of mind: Sleeping well at night because you have financial backup is priceless.

How to start saving: Step by step

1. Analyze your current financial situation

Make a clear list of:

• Monthly income

• Fixed expenses (rent, utilities, transport)

• Variable expenses (food, entertainment)

• Existing debts

This will give you a realistic view of how much you can actually save.

2. Set a savings goal

Having a clear purpose helps you stay motivated. Examples:

• Save $10,000 pesos in six months

• Build an emergency fund equal to three months of income

• Save for a down payment on a car

Tip: Divide your goals into short-, medium-, and long-term categories.

3. Define a monthly savings amount

A popular rule is the 50/30/20 rule:

• 50% for needs

• 30% for wants

• 20% for savings or debt repayment

If 20% feels like too much right now, start with whatever you can—5%, 10%, or even $100 pesos a week.

4. Automate your savings

The best way to make sure you save consistently is to automate it. You can:

• Set up automatic transfers to a savings account

• Use apps that round up your purchases and save the difference

• Open a separate account with no debit card to avoid temptation

5. Cut unnecessary expenses

Audit your spending. Ask yourself:

• Do I really need this?

• Is there a cheaper option?

• Can I skip this for a month?

Small changes, like making your own coffee or canceling unused subscriptions, can free up money to save.

6. Track your progress

Monitor your savings each month using:

• A simple spreadsheet

• A notebook

• Finance apps like Fintonic, Presupuesto Familiar, or Wallet

Seeing your progress will keep you motivated.

Tools to make saving easier

• Digital savings accounts: Fintechs like Klar, Hey Banco, or Nu offer no-fee accounts with better interest rates than traditional banks.

• Automatic saving apps: Ahorro Bits, BBVA’s Meta Ahorro, or automation features in digital banks.

• Physical envelopes: Great if you prefer cash—use envelopes for each goal or type of expense.

• Weekly savings challenge: Start by saving $10 the first week, $20 the next, and so on.

Pros and cons of saving

Pros

• Protects you from financial surprises

• Helps you reach personal goals

• Reduces reliance on credit or loans

• Improves your mental health and lowers stress

• Prepares you to invest in the future

Cons (or challenges)

• Hard to start if your income is limited

• Requires discipline and consistency

• Loses value over time if not kept in interest-bearing accounts

• Can feel frustrating if results aren’t immediate

Solution: Combine saving with financial education and long-term investing.

Common mistakes when trying to save

• Waiting to save what’s “left over”: Always save at the beginning of the month—not the end.

• Keeping all your money in one account: Makes it easier to spend without noticing.

• Saving without a goal: Without a purpose, saving feels pointless and hard to stick to.

• Comparing yourself to others: Everyone’s situation is different—focus on your own progress.

When’s the best time to start saving?

Right now. You don’t need to earn a lot or wait for the “right time.” Even with modest income, the key is to build the habit.

Remember:

“It’s not about how much you earn—it’s about how much you keep.”

Conclusion: Your savings are your freedom

Saving isn’t a punishment or sacrifice—it’s a way to secure your future. With small, consistent actions, you can build a fund that brings you peace, independence, and opportunities.

Take the first step today. Your future self will thank you.

Want to learn more?

Click here to access the Personal Finance: Your Ultimate Guide to Financial Success, complete practical tools, and step-by-step lessons starting from scratch.

We also invite you to check out our review: Opinion on Personal Finance: Your Ultimate Guide to Financial Success