5 Saving Strategies That Actually Work

Saving money is a crucial part of financial wellness, but it can be challenging, especially when you're dealing with limited income or high expenses. However, with the right strategies, you can build your savings even on a tight budget.

Here are five practical saving strategies that have been proven to work for many people:

1. Automate Your Savings

One of the most effective ways to save money is to make it automatic. Set up automatic transfers from your checking account to your savings account on payday. This way, you're paying yourself first before you have a chance to spend the money.

Start with a small amount if necessary, even NAD 100 per month, and gradually increase it as your income grows or as you reduce expenses.

2. Follow the 24-Hour Rule

For non-essential purchases, especially big ones, implement a 24-hour waiting period. If you see something you want to buy, wait 24 hours before making the purchase. This cooling-off period helps eliminate impulse buying and gives you time to consider whether you really need the item.

3. Use the Envelope System

The envelope system is a cash-based budgeting method where you allocate specific amounts of cash to different spending categories (e.g., groceries, entertainment, transportation) and place the money in labeled envelopes. Once an envelope is empty, you can't spend any more in that category until the next budget period.

This tangible approach to budgeting makes it easier to track your spending and avoid overspending.

4. Save Windfalls

Whenever you receive unexpected money, such as a tax refund, bonus, or gift, save at least 50% of it. Since this money isn't part of your regular budget, you won't miss it, and it can significantly boost your savings.

5. Cut One Regular Expense

Identify one regular expense that you can reduce or eliminate, and redirect that money to your savings. It could be as simple as making coffee at home instead of buying it, bringing lunch to work, or canceling a subscription service you rarely use.

The key is to be consistent and to transfer the money you would have spent directly to your savings account.