How to start saving — even if you’re starting from scratch

By Karen Bennett, Bankrate.com

The thought of saving money may feel overwhelming, especially if you have nothing saved and struggle to afford necessities like rent and groceries.

If you don’t have a healthy emergency fund, you’re not alone. In fact, only 30% of Americans would pay a $1,000 emergency expense from savings, a recent Bankrate survey found. Other survey respondents said they’d go into debt to afford such an expense through credit cards or personal loans.

Saving certainly isn’t easy and we won’t pretend it is — but here are some practical steps you can take to get started.

1. Set clear savings goals

The key to successful saving is knowing what you’re saving for. Whether it’s an emergency fund, a down payment on a house or a dream vacation, having specific goals can keep you motivated and on track.

Start by deciding upon your savings goals, giving them names (like “new car” or “wedding”), and setting deadlines for when you want to achieve them. Then, calculate how much you need to save each month to reach your target amount by your deadline.

Your first goal should probably be to save for emergencies

Whether you’re hit with a curveball in the form of a car repair, medical bill or a job loss, having an emergency fund — with three to six months of living expenses — can help you weather financial storms without going into costly debt.

2. Create a budget that works for you

At its core, a budget is simply a plan for making sure you’re spending less than you earn. In addition to helping you pay your bills on time and cover essential expenses, a budget can help you accomplish things like saving money and paying down debt. The key is finding a budgeting method that works for your lifestyle and personality.

Popular budget methods include:

• 50/30/20 budget: To make this budget, you set aside 50% of your income to needs, 30% to wants and 20% to savings.
• Zero-based budget: This budget method assigns a purpose to every dollar of your take-home pay — which can include a category for savings.

Whatever budgeting strategy you choose to follow, it’ll involve tracking where your money goes each month. This gives you the chance to find areas to cut spending. A digital budgeting app — such as YNAB or Rocket Money — can come in handy by tracking your spending and saving automatically.

3. Tackle high-interest debt

While it might not feel like paying off debt is helping you save, eliminating costly interest charges from carrying a balance can free up money to put toward your goals.

According to a recent Bankrate survey, nearly half of American credit cardholders carry a balance from month to month, with the average APR just under 20%.

Let’s say you have a $5,000 credit card balance with a 20% APR. Even if you pay $300 per month, you’ll end up paying an extra $906 in interest before reaching a zero balance. That’s money that could be going into your savings instead.

4. Automate your savings

One of the easiest ways to save more consistently? Make it automatic. Set up recurring transfers from your checking account to your savings account each payday, so you’re saving without even thinking about it.

Many banks also offer tools like round-up programs, which automatically round your debit card purchases to the nearest dollar and transfer the spare change to your savings. Over time, those small amounts can really add up.

You can also take advantage of money-saving apps like Oportun or Qapital, which can analyze your spending habits and automatically move small amounts of money into your savings when you can afford it.

Pro tip: Use multiple savings accounts

“Opening separate savings accounts for each of your goals can help you track your progress and stay organized. Plus, you can easily shift your money to the account with the higher interest rate to maximize your earnings,” says Hanna Horvath, CFP and Bankrate Managing Editor. You can also find a savings account that lets you divvy up your savings into goals or buckets, so you can keep one savings account but track your savings goal separately. Ally Bank and SoFi Bank are two online banks that offer this feature.

5. Separate your spending and saving

If you’re just getting started with saving money, consider opening up a savings account at a different bank from where you keep your checking account. This may help to create a psychological barrier between the money you have set aside for spending versus savings, making it less likely you’ll raid your savings on a whim.

“When you open your bank account app and your checking and savings numbers are in there, you kind of add those numbers together, and you’re like, ‘Oh, that’s how much money I have to spend,’” says Pamela Capalad, a certified financial planner and owner of Get Shameless Inc. “But if your bank accounts are at separate institutions — and better yet if your savings account is a high yield savings account — it’s out of sight, out of mind and your savings will grow.”

The bottom line

Starting to save can feel daunting, but the most important thing is to just start. No amount is too small, and no goal is too insignificant. Ways to begin include setting clear goals, creating a budget, tackling debt and automating your savings. Keeping your checking and savings accounts at different banks can also help eliminate the temptation to dip into savings for nonessentials.

Everyone’s financial journey is different. Stay open to trying new savings strategies and tools until you find the ones that work best for your situation and personality.

Key takeaways

• The first step to saving is setting specific, achievable goals and tracking your progress using a digital budgeting tool, spreadsheet or pen and paper.
• Following a budget can help you identify ways you can add to savings as well as pay down debt.
• Ways to help you save more consistently include keeping your spending money separate from your savings, as well as automatically transferring money to savings each paycheck.

©2026 Bankrate.com. Distributed by Tribune Content Agency, LLC.