If your goal is to get better at saving money, one thing you can start with is building habits and systems. It takes a lot of effort and energy to “remember” to save.
Saving that depends on willpower is fragile. Whereas saving that depends on systems is durable. Today, we’re choosing durable.
Disclaimer: This blog post is strictly for educational and informational purposes, and not intended to offer investment advice or serve as a substitute for personalized financial guidance tailored to your specific situation.
Here are 9 systems and habits you can incorporate to increase your savings:
1) Build a simple paycheck flow
When money hits your checking account, it should already know where to go. Here are some examples of places to direct your money:
- A “needs” bucket in a checking account for rent, utilities, groceries, transportation, insurance, medical, childcare, and other regular necessities..
- Starter emergency fund in a high-yield savings account. If you’re starting from scratch, aim for one month of essential expenses as a first milestone.
- Investments in tax-advantaged accounts you’re eligible for, like a 401(k) or IRA. Even small percentages matter.
- Sinking funds for non-monthly expenses. More on this below.
- Guilt-free fun money so you can actually enjoy your life.
Automate each transfer for the day after payday. If paydays vary, set up transfers to a fixed date that always comes after your typical deposit window.
2) Name your money so it behaves
Create separate savings buckets with clear nicknames for expenses you can see coming, such as Annual Bills, Car Maintenance, Home Repairs, Gifts, Pet Care, Medical, and Travel. You can also use fun nicknames like “Future You” or “2026 Vacay” to boost motivation. These buckets function as sinking funds. Keep them as sub-accounts at one bank, spread them across a couple of banks if that helps you stay disciplined, or use a budgeting app that creates virtual buckets.
3) Use sinking funds to prevent “surprise” bills
A sinking fund is money you set aside in advance for a specific, predictable expense so it does not feel like an emergency later. You assign the money a job, contribute on a schedule, and spend from it only for that purpose. Non-monthly expenses are predictable. Make a list of the annual or semiannual bills you tend to forget, such as insurance premiums, memberships, holidays, back-to-school supplies, dental cleanings, and car tags. Divide each total by 12 and automate that amount into the matching bucket each month. When the bill arrives, you pay cash and your budget stays intact.
4) Give your savings a percent, not a mood
Pick a default savings percentage for each paycheck. Start with 5 to 10 percent if things are tight. Increase it by 1% every quarter until you feel mild stretch, not pain.
This is not a forever rule. It’s a starter rule that can help you build momentum. Adjust your amount or percentage as income or life changes.
5) Make the big three less expensive
Housing, transportation, food.
These three often take up the majority of peoples’ monthly budgets. Shrink any one of these and your savings rate jumps. And if you find ways to shrink 2 or 3 of them, you’ll absolutely have a better chance at increasing your savings more quickly!
- Housing. Negotiate lease renewals, find a roommate, consider a shorter commute trade, or ask for retention concessions like one free month or reduced parking (as opposed to having the rent raised on you!).
- Transportation. Compare insurance policies, use public transit passes when possible, or downgrade to a cheaper vehicle if your numbers support it.
- Food. Pick something you can keep up consistently. Is that eating out 1-2x less each month? Or restricting happy hour drinks to certain days of the week? For some people it’s as simple as making a shopping list so that you buy all the ingredients you need (and nothing more!). Whatever it is, pick something that feels easy to implement and stay consistent with.
6) Trim interest, not joy
- If you carry credit card balances, call your issuer and ask about hardship or lower-APR programs. Pay more than the minimum each month until it is gone.
- Refinance or consolidate only if your all-in cost drops and you can keep your payoff date firm.
- Keep a small line of “fun money” in the budget so your plan feels more sustainable.
7) Negotiate your recurring bills in one sitting
Add a 1-hour block on your calendar this week to sit down and bring down some of your recurring bills. This could mean calling providers or starting “support” chats online. Start with these: internet, phone, streaming, security, software, and the gym. Ask for current promotions or loyalty pricing (let them know how long you’ve been a loyal customer!).
If you were able to get a bill or 2 down, schedule your next time block in 3-6 months to try others.
8) Add friction to impulse spending
If you tend to spend impulsively, creating time buffers between a thought & an actual purchase can prevent you from buying something you don’t want or need. Here are some tricks you can use to add friction and reduce spending:
- Delete saved cards from shopping sites.
- Remove shopping apps from your phone for 30 days.
- Unsubscribe from marketing emails from vendors you don’t want or need.
- Use a 24-hour or 48-hour “park it” list. If you still want it later on, you can buy it with fun money.
9) Try a savings challenge for 30 to 90 days
Pick one, not five. And try doing a challenge as a sprint rather than a yearlong marathon. Sometimes when you know there is an end in sight, it’s easier to stick to the plan and finish the race. Here are some challenges you can take on:
- No-Spend Weekdays. All discretionary spending only on weekends.
- Round-Up Rule. Round every purchase up to the next dollar and move the difference to savings weekly.
- Your “No” Bucket. Anytime you say no to a paid activity with friends and family, transfer the money you would have spent (or a flat amount like $10-20) into a specific savings account or bucket. See how much this can add up if you build up the reps for saying no. (Note: Don’t completely deprive yourself! The goal is to be more intentional; not to avoid all fun).
10) Keep your emergency fund easy but a little out of reach
Use a high-yield savings account that is separate from your checking account. And preferably, keep it at a different bank to add some friction. Transfers should take a day, not a second. That little delay protects you from moving money “just this once.”
As you add money to your emergency fund, don’t forget to celebrate milestones! For example, celebrate when you have:
- First 1,000 saved
- One month of essentials
- Three months of essentials
- Six months if your income is variable
11) Freeze lifestyle creep with the 50/50 rule
When your income goes up, decide in advance where it goes so your spending does not quietly expand. For example, plan to use 50% of that raise to go towards savings and investments, and the other 50% can be used on your lifestyle, guilt-free.
Or, if you have high-interest debt and many future goals you want to fund, you can focus an extra 30% towards debt payoff, 50% towards savings goals, and 20% to increasing your lifestyle.
There’s no exact rule to follow but the most important part is that you’re intentional with future money that comes your way.
A gentle reminder about shame
If saving has felt hard, please be reminded it is not a character flaw. Many of us were never taught systems. (And instead we’re bombarded with advertisements everyday convincing us that buying a new product or service will make us happier!).
Today, with this list, hopefully you’ve gained at least one new habit or system you can incorporate into your finances immediately.Want resources to help you get organized? Check out our free resource library!
