Easy Ways to Save Money

Begin with expense tracking. The first step to saving money is figuring out how much you spend. Track all your expenses—every coffee, household item, cash tip, and monthly bills. Record expenses in whatever way works for you—a simple spreadsheet, free online tracker, or even paper and pencil.

Once you have your data, group the numbers into categories like gas, groceries, and housing, then add up each category.

Check your credit card and bank statements to make sure you haven't missed anything.

How do I fit saving into my budget?

Make savings a monthly expense. Now that you know your monthly spending, create a budget that shows your expenses compared to your income. This helps you plan spending and avoid overspending. Include expenses that don't occur every month, like car maintenance.

Add a savings category to your budget and start with an amount that feels comfortable. Over time, try to increase your savings to about 20 percent of your income.

How do I save money on a tight budget?

Cut back on wants. If you can't save as much as you'd like, it's time to reduce expenses. Compare your spending with averages to find areas to cut.

First, look at nonessentials like entertainment and dining out. Then find ways to lower fixed monthly costs like car insurance or cell phone plans. Other daily money-saving strategies:

• Look for free activities using community event listings

• Cancel unused subscriptions and memberships, especially automatic renewals

• Eat most meals at home and research restaurant deals for occasional treats

• Wait a few days before making non essential purchases—you might realize it's a want, not a need

What kinds of savings goals should I set?

Use goals to make saving meaningful. Saving toward specific goals can be very effective because it gives you something to work toward. Think about what you want to save for—both short term (1-3 years) and long term (4+ years). Then estimate how much you'll need and your timeline.

Common short-term goals: Emergency fund (3-9 months of expenses), vacation, car down payment

Common long-term goals: Home down payment, renovation project, education, retirement

An if/then plan can help you reach savings goals by letting you anticipate obstacles and plan specific actions to overcome them.

Quick tip: Set a small, achievable short-term goal for something fun beyond your monthly budget, like a new phone or holiday gifts. Reaching smaller goals—and enjoying your reward—gives you a psychological boost that makes saving feel more rewarding and helps build the habit.

How do I prioritize my savings goals?

Learn to prioritize your goals to better allocate your savings. After expenses and income, your goals will greatly impact how you distribute your money. Common questions include whether to pay down debt, save, or invest—interactive tools can help with these decisions.

If you know you'll need to replace your car soon, start saving for it now. But don't forget long-term goals too. Retirement planning shouldn't take a back seat to shorter-term needs.

How do I grow the money I'm saving?

Put your savings to work. Various savings and investment accounts suit different goals, and you can use multiple options.

Consider minimum balances, fees, interest rates, risk, and when you'll need the money when choosing what works best for your goals.

For short-term goals, consider FDIC-insured accounts:

• Savings accounts (KOHO can help you earn 4% interest)

• Certificates of deposit (CDs), which lock in your money for a fixed period at higher rates

For long-term goals, consider:

• FDIC-insured IRAs or 529 plans (tax-efficient savings accounts)

• Securities like stocks or mutual funds (available through investment accounts)

How can work benefits help me save?

Many employers offer money-saving benefits. Key among these are RRSP plans that let you make automatic pre-tax contributions from each paycheck to a retirement plan.

Investment earnings aren't taxed until withdrawal, and employers often match a portion of contributions. Other pre-tax benefits include Health Savings Accounts and Flexible Spending Accounts for medical and childcare expenses.

Are there easy ways to save money?

Most banks offer automated transfers between checking and savings accounts. You choose when, how much, and where to transfer money—or split your direct deposit so part of each paycheck goes straight to savings.

The Benefit:

You don't have to think about it and are less likely to spend the money. Other easy tools include credit card rewards and spare change programs that round up purchases and transfer the difference to savings.

Your money journey starts today

Review your budget and check your progress monthly. This helps you stick to your savings plan and quickly fix any problems. Understanding how to save might inspire you to find even more ways to save and reach your goals faster.