5 Practical Saving Strategies That Work

Most people know they should save, yet many don’t.

Why? They are carried away by:

• Instant gratification: we are wired to enjoy rewards now. Delayed pleasure (like saving) often feels like a loss.
• Lifestyle inflation: The more we earn, the more we spend. That raise you got? It’s already been spent on a better phone, fancier dinners, or another streaming subscription.
• Lack of vision: Saving feels pointless without a clear reason. If you don’t know what you’re saving for, you won’t stay motivated.

For you to build a savings habit, you must start by shifting your mindset. Saving is not just “not spending, “it is a way of paying your future self first.

We’ve created a list of 14 high-paying side hustles to help you earn more so you can improve your savings.

This guide on how to budget and save money can help you develop a simple and realistic strategy that meets your needs.

5 Practical Ways to Save More Money

1. Pay Yourself First

The Pay Yourself First method is one of the oldest and most effective savings strategies, dating back to early financial wisdom.

Unlike waiting to save what’s left after spending, this approach prioritizes savings before any other expenses, treating it like a non-negotiable bill.

As soon as income arrives, a fixed portion (e.g., 10-20%) is immediately transferred to savings before covering bills or discretionary spending.

Here is how it works: as soon as your income arrives whether it is a salary, business earnings, or freelance payment you immediately allocate a fixed percentage (commonly 10–20%) to savings. That amount is “paid” to yourself before you spend a single dollar on bills, food, or entertainment. In essence, you are prioritizing your future self over your current wants.

To make this strategy foolproof, automation is key.

Set up an automatic transfer to a savings account, digital wallet, or savings app that moves the predetermined amount out of your main account the moment you get paid.

This removes the temptation to spend it and reinforces financial discipline. You must gain control over your money, or the lack of it will forever control you.

Dave Ramsey emphasizes that financial discipline empowers rather than restricts.  

The magic of this method lies in its consistency.

Whether you are saving for an emergency fund, a business startup, a vacation, or retirement, “paying yourself first” helps you build that fund steadily and without stress.

Over time, you will start to notice your savings grow with minimal effort, simply because you committed to putting yourself first.

2. Know Your ‘Why’: Set clear, emotional saving goals

Your savings must be tied to something that means something really important to you.

Saving for “the future” is too vague; try narrowing it down to a particular need.

For example, Saving for: A house in 3 years, Starting a business, Paying off debt, Relocation, Emergency

Write down 3 specific saving goals. Attach a timeline and amount to each.

Example:

Goal: Emergency fund

Amount: $10000

Deadline: 8 months

3. Track every penny spent and how it is spent

You can  not fix what you do not know.” One of the most powerful habits for financial clarity is tracking every single penny you spend.

For the next 30 days, make it your mission to account for every transaction, no matter how small. Why? Because awareness is the first step to control.

Use tools that make tracking simple and convenient. A basic Excel or Google Sheets file works just fine, especially if you enjoy customizing your records.

But if you prefer automation and real-time updates, consider using free or low-cost mobile apps like Mint, Spendee, etc.

You will be surprised at what you find. Small, daily purchases like airtime top-ups, bottled water, street snacks, or digital subscriptions add up fast.

These are often the hidden “money leaks” that silently drain your finances each month. To take it a step further, do a 30-day money audit.

Start by listing all your income sources. Then break your spending into two categories:

• Fixed Expenses – Rent, transportation, loan payments, utility bills
• Variable Expenses – Food, entertainment, shopping, takeout, spontaneous spending

By the end of the month, you will have a clear picture of where your money goes, not just where you think it goes.

This insight empowers you to make smarter choices. You can plug leaks, cut unnecessary expenses, and set achievable savings goals.

4. Build the “3-Sink” budgeting system

Split your income into three main buckets or “sinks”:

Sink 1: For Essentials (50%)

These are the non-negotiable expenses that keep you alive and functional. They are your survival costs.

• Rent or mortgage
• Electricity, water, and gas
• Food (groceries, not restaurants)
• Transport (gas, public transport, etc.)
• Minimum payments on loans and debts.

Tip:

If your essentials cost more than 50%, try to cut back lifestyle expenses or find ways to reduce fixed costs like moving to a cheaper apartment or cooking more at home.

Sink 2: For Financial Goals (30%)

This sink is for building your future and escaping the paycheck-to-paycheck cycle.

• Savings (for emergencies, business, home, etc.)
• Investments (mutual funds, stocks, retirement funds)
• Debt repayment (beyond the minimum)
• Sinking funds (for things like weddings, school fees, car repairs, etc.), savings, investments, and debt repayment above the minimum

Sink 3: For Lifestyle (20%)

This sink is for the nice-to-haves, the comforts and indulgences that make life enjoyable but aren’t necessary for survival.

It should not exceed 20% of your income. Despite how tempting it may be to overspend, the purpose here is to enjoy life without sabotaging your future.

Lifestyle Includes:

• Entertainment (Netflix, movies, concerts)
• Dining out and fast food
• Fashion and shopping
• Subscriptions (music, gym, magazines)
• Travel and vacations
• Hobbies and leisure
• Gifts and treats

To avoid emotional or impulse spending here. Set a monthly limit. Use cash or prepaid cards to stay within your lifestyle budget. If you want to splurge, increase your income first and not your spending habits.

5. Using savings apps and digital wallets

In the digital age, saving money no longer requires a trip to the bank or stashing money under the mattress.

Saving apps and digital wallets make it easy, automated, and even rewarding to set money aside for your goals, whether it’s for an emergency, a vacation, your rent, or starting a business.

Savings Apps and Digital Wallets That Are Efficient

Saving Apps are digital tools designed to help you set aside money automatically, track your savings goals, and sometimes earn interest or returns on your savings.

Digital Wallets, on the other hand, are mobile-based platforms that allow you to store, send, and receive money securely; some also include built-in savings and investment features.

Here are 5 saving apps and digital wallets that can help you achieve your savings goal

1. Revolut

Available in: Europe, USA, Canada, Australia, Singapore, and expanding globally.

Best for: Multi-currency saving, travel, budgeting, and investing

Features:

• Save in 30+ currencies
• Set up “Vaults” to save for different goals
• Round-up savings (e.g., save change from transactions)
• Budgeting tools + spending insights
• Offers crypto & stock investment options
• Travel-friendly with great exchange rates

2. Wise (formerly TransferWise)

Available in: 170+ countries

Best for: Multi-currency holding, borderless accounts, and business/freelance income

Features:

• Hold & save money in over 50 currencies
• Low fees for currency conversion
• Borderless account with local bank details (USD, GBP, EUR, etc.)
• Great for freelancers and remote workers
• Send/receive international payments

3. Monzo (UK-based)

Available in: UK (expanding into the US)

Best for: Budgeting and savings pots

Features:

• Create “Pots” for different saving goals
• Set savings rules (e.g., round-ups or scheduled transfers)
• Spend tracking & budgeting features
• Offers joint accounts and business accounts
• Great for everyday banking + saving in GBP(Great British pound)

4. Chime (US-based)

Available in: United States

Best for: Automated savings and fee-free banking

Features:

• Auto-save a percentage of your income
• Round up transactions to the nearest dollar and save the change
• No monthly fees
• FDIC-insured savings accounts
• High-yield savings options

5. Chipper Cash

• Works across multiple African countries + the UK + US
• Send/receive money internationally
• Save and invest through the platform
• Good for diaspora Africans sending money home

In Conclusion, saving money is an essential part of financial stability and growth, but simply deciding to save is not enough.

For any savings plan to be truly effective, it must be backed by a strong, practical strategy. A successful saving strategy is how you go about it.

To ensure long-term success, every saving strategy should have four key qualities: clarity, consistency, flexibility, and trackability.