How to start saving money: 8 steps that make it stick
2 min read · 8 steps · Updated 3 October 2026
Pay off expensive debt first, then start with a small fixed amount. Open a separate savings account, set up an automatic transfer for the day after payday, and build a cushion of three months of essential costs before anything else. A written goal with an amount and a date keeps you going.
Saving rarely fails because of too little income alone. It fails because whatever is left at the end of the month is never much. The steps below, based on the advice of the UK's government-backed MoneyHelper service, turn saving from a leftover into something that happens by itself.
This is general information, not financial advice. Interest rates, taxes and account rules differ from country to country.
Step by step
Clear expensive debt first
Credit cards, store cards and overdrafts cost far more in interest than a savings account pays. Paying them down is the best return you can get. Keep a small buffer for emergencies meanwhile, so one surprise bill does not go straight back on the card.
Start small
A small amount you really set aside beats a large one you give up after a month. Three units of your currency a day is more than a thousand in a year. Begin with a sum you will not miss, and raise it later.
Keep savings in a separate account
Money in the everyday account gets spent. Open a savings account, ideally at a different bank or at least without a card, so it is out of sight.
Make it earn interest
Compare accounts instead of leaving savings at zero interest. An easy access account suits the emergency fund. Money you will not need for a year or more can go into a fixed-term account at a higher rate.
Build a cushion first
The first goal is an emergency fund of about three months of essential outgoings: rent, food, bills, transport. Add up one month of those and multiply by three.
Automate it
Set up a standing order from your current account to the savings account. What moves by itself needs no decision and no willpower.
Save right after payday
Date the transfer for the day after your pay arrives. You then live on what is left, instead of saving what is left, which is usually nothing.
Set a goal
Write down what you are saving for, how much it costs and by when. Divide the amount by the months to get the monthly figure. A concrete goal, such as a holiday or a deposit, is easier to keep to than a vague wish to save more.
Good to know
When you get a pay rise, raise the standing order on the same day, before you get used to the extra money.
Put windfalls, such as a tax refund or a bonus, into savings straight away, at least in part.
Our free calculators help with the numbers: the emergency fund calculator and the savings calculator.
Related: how to build an emergency fund, how to pay off debt faster and how to make a budget.
In short: Expensive debt first, start small, separate account with interest, three months of essentials as a cushion, standing order the day after payday, a goal with an amount and a date.
- MoneyHelper: Eight ways to start saving successfully
Rules and prices change. Check the official source before you act.