What Is the Easiest Way to Start Saving Money?

The easiest way to start saving money is to automate a small transfer every payday.

Choose an amount you know you can afford—even $5, $20 or $50—and have it automatically moved into savings when you get paid. This removes the need to remember to save and helps turn saving into a regular habit.

KOHO High Interest Savings

It is a prepaid Mastercard, so you spend your own money while still earning high interest.

With KOHO High Interest Savings, you can:

• Grow your savings up to 3.5% interest

• Earn a 2% cash back rate on groceries, eating, drinking, and transportation and 0.5% cash back on everything else

• Unlimited transactions and free e-transfers

• No minimum balance required, ever

Start With an Amount You Can Actually Afford

You don't need hundreds of dollars to start saving. Start with a small, realistic amount rather than setting a goal that may be difficult to maintain.

For example, if you get paid every two weeks, you might start with:

• $10 per paycheque: about $260 per year

• $25 per paycheque: about $650 per year

• $50 per paycheque: about $1,300 per year

The goal at the beginning is to make saving consistent, not necessarily to save a large amount immediately.

Automate Your Savings on Payday

Once you've chosen an amount, schedule an automatic transfer for the same day your paycheque arrives.

Set up automatic savings transfers for payday so the money is moved before you have the opportunity to spend it.

This is often easier than waiting until the end of the month and trying to save whatever is left.

What Should You Save for First?

If you're just getting started, consider making an emergency fund your first savings goal.

An emergency fund gives you money to cover unexpected expenses without immediately needing to borrow. Work toward enough to cover approximately three to six months of regular expenses or income.

You don't need to reach that amount right away. Your first goal could simply be $500 or $1,000, followed by gradually increasing it.

Increase Your Savings When You Can

Once you're comfortable with your automatic savings amount, increase it gradually.

For example, you could move from $25 to $40 per paycheque after getting a raise, paying off a bill or cancelling an unnecessary monthly expense.

The easiest savings strategy is ultimately a simple one: start small, automate it and increase the amount when your budget allows.