How to Save Money Each Month

How to Save Money Each MonthMost people spend what they earn.  If you want to get ahead and save more money each month, you have to keep your expenses less than your income.  Sounds simple, right?  By following these steps, it is.  The biggest key to being able to save more money each month is to contribute to your savings account first.

How to Save Money Each Month

Four easy steps.  That’s all it takes.


Have paychecks in your household deposited directly into a savings or other interest bearing account.  Then, only transfer enough money into your checking account to cover your monthly expenses.  Set the amount so that it covers your monthly bills and a little cushion, but not too much extra.  This facilitates keeping your monthly expenses at the same level, regardless of your income.  As your income (hopefully) increases, continue to maintain your same level of expenses (and your monthly transfer to your checking account) and your savings will automatically increase.


Examine your monthly expenses and think about your monthly spending.  Are you able to do without cable?  Is it possible to eat out less often?  Can you cancel something?  What is all that spending that is showing up on your credit card?  Can you get a better price on insurance (life, car, health)?  Can you do without something?

Don’t think about doing without as a sacrifice.  Think about it as shifting your spending from things that aren’t so important to the things you really value.  For example, I like to shop, for pretty much anything.  But most people, including me, enjoy the experience of shopping more than the fleeting happiness that comes with the new item.  So, a strategy may be instead of going to the mall try shopping at second-hand stores.  That way you can still fulfill that pleasure and have it cost a fraction of purchasing items new.  A (relatively) simple mind-set change is all it takes.


Once you automate your savings and prioritize your spending, you’ll realize how easy it is to save money each month.  Set-up an account that allows you to easily invest your savings and you’ll be on your way to building your financial nest egg.


Saving money and not spending can become addictive, once you start to see the benefits of it.  You’ll also see your savings grow.  Early (meaning the younger you start, the better) investing is best, but getting started at all and then doing it consistently will get you in the habitCompounding interest will become your new friend.

Try it.  You can do it.

What are your secrets to saving money?  Any tips you’d add to my list?  Do you like saving money or are you more of a spender?

Go Gingham related links:

Tried and true investing strategies
Just balance that checkbook! You can do it!
Debt – you decide on the level you’re comfortable with
What does it mean to budget? Find out here
Frugal living is the key to saving
The problem with budgeting – yes, the problem!
How finances figure in frugality

2 thoughts on “How to Save Money Each Month

  1. Great post, Sara. I’d love to hear a personal example of a hard decision you have had to make when it comes to budgeting….just to hear what other folks are doing and thinking about….This is a helpful post! Keep ’em coming!


  2. Hey Kate…thanks for leaving a comment. I’ll work on a post about a hard decision. Good idea. Thank you.


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