How to save money every month: 7 habits that work

Saving money feels hard because it's framed as a sacrifice. In practice it's a set of small habits that, repeated, change your situation. These seven are a good starting point.

1. Pay yourself first. As soon as income arrives, set the savings aside; don't wait to see what's left, because very little ever is.
2. Name each goal. "Save" is vague; "three-month emergency fund" or "December trip" is concrete and more motivating.
3. Start small. An amount that doesn't hurt and that you can sustain beats a heroic one you drop in week two.
4. Trim the invisible. Look at small daily expenses and subscriptions you don't use: money that gives you nothing back.
5. Automate. If saving depends on willpower every month, sooner or later it fails.
6. Keep your emergency fund separate. A reserve for surprises stops an urgent bill from pushing you into debt.
7. Track your progress. Seeing how much you've saved and how much is left keeps the habit alive.

Saving and paying off debt at once

If you have high-interest debt, it usually makes sense to put a large part of any extra money toward it while keeping a minimum savings cushion for emergencies. Knowing exactly how much you owe, and to whom, is the first step to sorting it out.

Tip: Before choosing where to keep your savings (account, fund, term deposit), compare the terms of each option and be clear about when you'll need the money. This article is informational and isn't financial advice.

How HeyCents helps

In HeyCents you can create savings goals and see your progress in the Portfolio, next to your savings funds and term deposits. It also gathers your debts, both loans and what you owe other people, so you see your whole money picture in one place.