3 Effective Ways to Save Your Money

Kevinson Libama
Nov 2 · 2 min read

Here’s something we can both agree on . . .

Every financial goal starts with saving.

Whether you want to invest in stocks, retire early, or buy that dream home, you better start saving. And start today.

There’s a lot of advice out there on how exactly to save but most of that is a bit confusing.

I have summarized it all into these three easy and practical ways.

Here’s how:

1. Make a Budget

The easiest way to know how and where you will spend your money is by making a budget. A budget helps you to understand and most importantly, which item you will pay the most money.

After you make a budget, it will be easier for you to know what you can cut back on, and thus, not spend as much as you would have, had you not made a budget.

This is a simple way to avoid overspending, which is spending on items that you did not need in the first place, or spending on things you really do not have money for. So, a budget provides a clear outline of where you will spend your money.

2. Pay Yourself First

Once you have a budget and have decided to cut back on a few items in your budget, you will have extra money lying around. With this money you can pay yourself instead of wasting it on a luxury item.

Proceed to deposit it into a savings account, where you can deposit more over time until you have saved a lot of money. Most people spend more than save, but this approach teaches you to save money first before spending it.

So, put aside money before you spend it. You are guaranteed to spend less.

3. Spend Less Than You Earn

This is the last but most important tip. No one in the world can spend more than they earn, even if you were the richest man in the world. You will acquire debt if you do.

By spending less than you earn, you solve your debt problem and others’ problems as a result of debt. This also increases your cash flow and savings as well.

These are among the most effective ways you can cut costs and spend less than you intend to, therefore saving you money.


This article is for informational purposes only, it should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions

Making of a Millionaire

Stories about money, personal finance and the path to financial independence.

Kevinson Libama

Written by

A personal finance freelance writer.

Making of a Millionaire

Stories about money, personal finance and the path to financial independence.

Welcome to a place where words matter. On Medium, smart voices and original ideas take center stage - with no ads in sight. Watch
Follow all the topics you care about, and we’ll deliver the best stories for you to your homepage and inbox. Explore
Get unlimited access to the best stories on Medium — and support writers while you’re at it. Just $5/month. Upgrade