Saving money is a major problem for many people across the world. Research has reviewed that most employed people have no savings despite getting a salary at the end of every month. Below are 5 ways you can ensure that you accumulate saving from your salary.

1. Prepare a monthly budget

Lack of a budget is a major threat to saving. In your budget capture the estimated monthly expenses,  projects, and any other necessary financial obligations.

By so doing, you will have an estimate of how much money remains after the expenses. You can save that money.

Failure to have a monthly budget means that you have no limit on any expense. The risk involved for not having a budget is that you will likely overspend on one expense at the expense of savings and other needs.

You can come up with a working money budget that will make estimating your savings easier.

2. Audit your expenses

You need to minimize your expenses in your budget. Since we save whatever remains after the budget estimate, the less the expense translates to higher savings.

Go through your list of expenses and ask yourself if they are sensible. Shrink your expenses except for constant expenses like housing, a bank loan, insurance premium, and household bills.

Some of the expenses you can shrink include outings, parting, outside catering among others. Minimizing expenses will lead to more savings.

3. Save before spending

Despite having a budget and minimal expenses, you need to save your saving estimates first.

At one point in your life, you must have promised to save money only to find you overspend your expenses and probably not saved anything. This is just because you did not save before spending.

Therefore, after budgeting save your savings estimate before you pay any expense.

So before you pay your rent or bills, go deduct the saving money, and deposit in the savings account. After this, you can now continue financing your expenses.

4. Open an inaccessible savings bank account.

You need to save your money far away from you. Saving your money under your mattress or in the same bank account is useless. You will probably end up accessing the money for unnecessary expenses.

Therefore, save money where you cannot access easily. This could be a separate bank account or a Sacco savings account.

You can automate your savings as well. After elaborate budgeting, you can come up with estimated monthly expenses and savings.

You can instruct your bank to deduct you saving into a saving account. This way, you will have a

 5. Save on Your expenses

Saving is a continuous process. To save effectively, you have to save on the expenses too. Saving on expenses means limiting expenses to only what is necessary.

For instance, if you had an outing and you used to make two pizzas with your friend, you plan to only take one and saving the amount that could be used to buy the other pizza.

This is where money bank tins at home come in. For any money saved on an expense, deposit that money in the money bank.

You will be surprised at how much you will have saved the end of the month. You can break the tin after the money and use the money to clear your bills.

That way, you will save money for electricity in your main savings plan.


Here are 5 tips to maximize savings on your salary

  1. Prepare a monthly budget
  2. Audit your expense
  3. Save before spending
  4. Open an inaccessible bank account
  5. Save in Your expenses