Quick Tip: The best way to save money is to plan for it. This is usually the starting point as well.
Getting started with saving money can often feel like the hardest part. But don’t worry—this guide on budgeting and saving will help you create a straightforward, realistic plan tailored to your needs.
In this weblog, I will share details on how to save money and how I personally save it.
How do I start saving money?
Begin with expense tracking
Well first things first, start with tracking your expenses. To save money, you first need to know where it’s going. Keep a record of everything you spend—every karak, coffee, household item, cash tip, and monthly bill. Use whatever method works best for you, whether it’s a spreadsheet, a free app, or good old-fashioned pen and paper.
Once you’ve got your list, sort your expenses into categories like groceries, fuel, and rent, and then add up the totals. Double-check with your bank and credit card (I am strictly against Credit Cards for so many reasons) statements to make sure you haven’t missed anything.
I’ve personally tried a couple of personal expense-tracking apps, like Mint and Wallet, which are great for automatically categorising expenses and offering insights into spending habits. However, I’ve found myself coming back to Google Sheets.
It’s free, simple, cloud-based, and customisable, and it lets me track my expenses in a way that suits my needs. With Sheets, I can create my own categories, tweak formulas, and have complete control over my data without relying on third-party apps. It might take a bit more manual effort, but for me, it’s worth it for the flexibility it offers.
Set savings goals
Set a clear and realistic goal for your savings journey. It could be something like, “Save $5,000 in a retirement fund this year” or “Pay off my credit card debt ahead of schedule.” The key is to be specific about what you want to achieve.
To make it easier, use a savings goal calculator. It’s a handy tool that breaks down how much you’ll need to save each month or year to hit your target. This way, you’ll have a clearer picture of what’s manageable and can track your progress along the way.
That said, you don’t have to set a specific savings goal if it doesn’t suit your situation. Personally, I don’t set one because I’m not in debt. As a Muslim, I avoid credit cards since interest is haram in Islam. Without debts, I don’t feel pressured to save a certain amount by a deadline.
Instead, I approach it differently—I create a budget to manage my income and expenses effectively. If setting a specific savings goal works for you, go for it. Otherwise, budgeting alone can also be a great way to build financial stability.
Create a budget
A smart way to take control of your money—and hopefully save more—is by sticking to a budget. This simply involves comparing your income to your expenses and prioritising how you spend. To get started, you can use a free budget template or even jot it down on a scrap piece of paper.
One budgeting method that works for many is the 50/30/20 rule. This approach allocates 50% of your after-tax income to necessities, 30% to wants, and 20% to savings or debt payments. If one category goes over these percentages, you can adjust your spending in the others to stay balanced. It’s a straightforward strategy to help you manage your finances effectively. You can even use an online 50/30/20 budget calculator to make the process easier.
I take this method a step further. While the rule of dividing your income is a great starting point, to me, budgeting isn’t just about staying within those limits—it’s also about not feeling the need to fully utilise the allocated budget. Personally, I rarely exhaust the full amount set for necessities or wants. Whatever is left over from these two categories goes straight into the savings category. Because of this, my savings are often more than 20%.
This approach also helps me curb overspending and avoid unnecessary expenses. By being mindful of my spending habits, I ensure my money is going to the right places while building a stronger financial cushion. I’ve found it much better to save more consistently.
50/30/20 Budget Calculator
Save on grocery shopping
When it comes to grocery shopping, saving money is all about planning and being mindful of what you’re buying. Here are some personal tips that have helped me keep my grocery bill in check:
- Create a Shopping List: I mostly have a shopping list already made; I don’t usually create it just before going grocery shopping. I use Google Keep to keep this list, and the app is simple and easy to use—I highly recommend such tasks or to-do apps. Whenever I need something or feel like something is finished, I write it there. This helps me keep the shopping list current and relevant. When I go shopping, this list helps me avoid impulse buys and ensures that I only purchase what I need. It also reduces food waste, which can really add up over time.
- Compare Prices and Shop Sales: I check weekly circulars and compare prices between different stores. It’s a small effort that can lead to big savings. Many grocery stores offer discounts, especially on non-perishable items and household products. Taking advantage of sales can make a big difference in the long run.
- Buy in Bulk When Possible: For items I use frequently, like grains, pasta, or canned goods, buying in bulk is a smart way to save money. Just make sure to store these items properly to avoid waste. It’s a small investment that pays off over time.
- Use Store Loyalty Cards: I always make sure to use store loyalty cards because they offer discounts and rewards for loyal customers. It’s a simple way to save on regular purchases without extra effort.
- Avoid Pre-packaged and Processed Foods: These items can be more expensive than their fresh counterparts, so I try to buy fresh produce, whole grains, and cooking ingredients. Not only do I save money, but I also end up with healthier meals.
- Plan Your Meals: Planning my meals ahead of time is one of the best ways to save money. It helps me avoid buying extra ingredients that might go to waste. I also try to use leftovers creatively to reduce the need for convenience foods, which can be costly.
- Use Coupons Wisely: I’m cautious with coupons. I only use them for products I regularly buy or those that are on sale. It’s tempting to buy items just because they’re discounted, but I make sure I really need them first.
- Shop Smartly During Promotions: I always take advantage of special promotions like “buy one, get one free” or discounts on certain days of the week. It’s a great way to get a good deal, but I only take advantage of these offers if the products are things I would buy anyway.
Switch to a more affordable mobile plan
Switching to a more affordable mobile plan can be a great way to save money each month. Start by evaluating your current plan and usage—how much data, calls, and texts do you typically use? If you’re paying for more than you need, it might be worth considering a prepaid plan. Be sure to check the network quality in your area, as well as any additional fees that could impact your savings.
Given that I don’t usually use calls on my personal phone or, if I do, a couple of bucks will suffice, and with data being covered by Wi-Fi at the office, and home, I find that my current prepaid plan with Etisalat works well for now. It gives me 1GB of data every day, costing around 50 AED a month or around 85 AED for two months. So, it really depends on your own usage habits and what’s most convenient for you.
Reduce Your Electric Bill
Making both big and small changes in your energy usage can lead to significant savings on your electricity bill each year. Start by plugging any insulation leaks in your home, using smart power strips to cut off energy when devices are not in use, swapping out old appliances for more energy-efficient ones (makes a difference, trust me), and switching to a smart thermostat. These simple adjustments can lead to noticeable reductions in your monthly electricity usage, which over time, can add up to substantial savings. Every little bit counts when it comes to cutting your energy costs.
Cancel Unnecessary Subscriptions
It’s easy to forget about subscriptions you no longer use or need. Take a close look at your credit card or bank statement to identify any recurring expenses that you can eliminate—often, this can reveal unnecessary subscriptions quietly draining your funds. Be cautious with free trials as well—always make a note or set a calendar reminder to cancel before the free period ends to avoid unexpected charges. Taking control of these subscriptions can help you save money each month. For example, I found that Amazon Prime no longer benefited me because I wasn’t using any of its perks. So, I decided to cancel the subscription. If I need it again in the future, it’s easy enough to sign up again. This way, I’m not wasting money on something I’m not using, but I still have the flexibility to re-subscribe whenever I need the benefits.
Plan and Budget for Major Purchases
Timing your purchases of appliances, furniture, cars, electronics, and more during annual sale periods can help you save big. If you’re an Amazon Prime member, take advantage of Prime-exclusive sales in July and October. To ensure you’re getting a good deal, track prices over time using tools like Camelizer from Camelcamelcamel, which lets you view price histories on Amazon, or Honey, which automatically finds and applies relevant coupons when you shop online.
