Saving money is a really important habit for everyone to have. It doesn’t matter if you have a lot of money, little, or if you are just starting to earn. Learning how to save money is one of the best things you can do with your money.
It’s not enough to know that saving is good, but to find ways that work with your real life. In this guide, we share five science-backed steps on how to save money.
Step 1: Set Precise, Personal Saving Goals
The best starting point for saving, according to several behavioral economics studies, is having a clear, detailed goal that aligns with your unique motivations and lifestyle. Research from Columbia Business School shows people are more successful at saving when their target is specific and matches their psychological needs—such as saving for a “home deposit,” “Pregnant wife emergencies,” or even a “vacation in Seychelles.”
Every month, break big plans into small, attainable goals, and track progress—this activates a sense of personal accomplishment that makes the saving habit stick. Remember, it’s not about how much you start with but about building a habit around a goal that excites and motivates you.
Step 2: Make Your Budget Dynamic—and Use Tools to Track
Budgeting should adapt to every income shift, expense spike, or life change. Instead of following rigid plans, review and update your budget every month, just as new bills or unexpected expenses pop up. Use mobile-friendly apps or simple spreadsheet templates to see where money is actually going.
Science shows that “mental budgeting,” or constantly being aware of spending and categorizing expenses, is strongly linked to better financial well-being and smarter decision-making. Make a new habit of automatically transferring at least 10% of all income into savings right after payday, so you put yourself first, every time.
Step 3: Use the 72-Hour Rule for Smarter Spending
Impulse purchases are one of the biggest challenges to saving effectively. That’s why applying the “72-hour rule” can be a game-changer. Whenever you feel tempted to buy something you don’t actually need, stop and wait before buying it. Most people find that their first strong feeling to buy has gone after 72 hours.
Studies in the Journal of Consumer Psychology confirm that delaying gratification helps reduce overspending and leads to higher satisfaction with both the purchases made and the money saved. Try it for a month—apply the pause, and see how unnecessary expenses start to melt away.
Step 4: Automate Your Savings and Make Every Transaction Count
One of the easiest ways to ensure you save consistently is to put your finances on autopilot. Setting up recurring, automatic transfers from your main account to labelled savings accounts ensures a portion of income goes untouched until truly needed. This method works even better when you organize your savings by purpose, like “emergency fund,” “education,” or “future investments.”
Beyond this, you can make everyday transactions work harder: use payment platforms that offer rewards and referral programs. For instance, paying your bills or topping up airtime regularly through VTpass doesn’t just give you convenience and peace of mind; you can also sign up for our reseller or affiliate programs and earn a commission when friends or family use your personalized link.
Step 5: Declutter and Turn Your Unused Stuff Into Savings
Sometimes, the simplest way to unlock extra cash is to look at what you already own but no longer need. Each quarter, set aside a few hours to review your wardrobe, gadgets, or even kitchen items. Items that haven’t been used in six months or more likely have hidden value. Sell these items using popular online marketplaces or community groups in your area.
Not only does this put extra cash directly into your savings, but it also encourages intentional purchasing habits and helps prevent future waste. That bonus income can power up your savings plan—especially if you decide to dedicate every sale to a specific savings target.
Conclusion
Saving is about knowing yourself, using psychology, and using habits that fit your life. With these five science-backed steps, you can finally make saving feel possible and personal.