How To Save Money Based On Your Salary

Wouldn’t it be easy if there was one simple rule that applied to everyone trying to save money from their salary? It would certainly make life easier and give you the confidence to know that you can cover all of your bills without any stress or pay for your annual holiday . Although everyone has different financial situations, here are our top ways to save money, when it comes to managing what you do with the money you earn each month.

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What Is The Hardest Thing About Saving Money?

One of the most complicated things that cause people to lose track of their financial situation is lacking a structured budget and not knowing how much they earn versus what they spend each month; income and expenditure. With a steady income, many people may not track how much they are receiving or spending on both regular as well as one of purchases and subscriptions. In some cases, you may be spending more than necessary on unused subscriptions or frivolous expenses. As a result, not knowing how much you make or spend can significantly impact your ability to save.

5 Top Tips for Saving Money


Everyone’s circumstances are different and everyone’s financial goals and needs are different, depending on a number of different factors, like what you need on a day to day or week to week basis, how many dependents you have and how much you like to indulge and treat yourself.

There are however, some typically effective steps you may wish to take to help you save money:

1. Understand Your Spending

Breaking down what is a necessity and a luxury is a great way to start saving. This will weed out unnecessary spending patterns that at first might seem insignificant, such as the classic morning coffee that we’ve all heard can save someone around £1,000 annually.

You can break down all of your bills and subscriptions into a monthly amount and then figure out what you actually need or what you’re willing to sacrifice to save some money.

You can do this the old-fashioned way by creating a categorised, handwritten spreadsheet or if you’re more tech-savvy, download many of the financial tracking apps available.

2. Create A Budget

Once you have figured out what your monthly income and expenses are, you will not be able to create a budget to best suit your needs. It’s important to set realistic goals that are completely achievable and leave you with a little wiggle room.

To establish your budget, first list all of your necessary expenses for the month. These will typically include rent, utility bills, groceries, and transportation. Next, list all your other non-necessity expenses, such as subscriptions, dining out, and entertainment.

Once you’ve listed all your costs, allocate a percentage of your monthly income to each category. Typically, it is best to overestimate how much you spend on necessities, such as bills. This can help you be prepared if you have a particularly high energy bill for one month.

3. Take Advantage of the Competitive Market

The good news is that it’s not expected to completely stop enjoying the nicer things in life, such as going to see a film, having a cocktail, or dining out. With so many businesses competing for your business, you can still save and enjoy happy hours.

By using these offers, you might save up to 50%, which is much better in your wallet when trying to save. Another great option is to source a supermarket that offers loyalty schemes and rewards for its clients.

4. Pay Off Your Debt

It might seem impossible to try and save money while attempting to repay a debt; however, paying off your debt as soon as possible should be a priority. Doing this will save you money on interest rates and allow you to save money from your salary with a clear mind.

If you’re in a lot of debt, with more than one lender, it might be worthwhile looking into consolidating your debt by doing a 0% transfer to a credit card that offers a 0% interest rate for a certain period of time. Whether you have outstanding payday loan payments, or other credit commitments, consolidating and addressing debt is always worthwhile when possible.

5. Follow The 50/30/20 Saving Rule

Another option is to simply follow the popular 50/30/20 saving rule, which can be applied to anyone on a salary.
This method is split into three categories, which are:

  • 50% on ‘Necessities’: This implies everything that falls into the ‘survival’ category, which can include your bills, rent or mortgage, groceries, and even your debt repayments.
  • 30% on ‘Wants’: Here, you’ll include your luxuries like Netflix and other subscriptions, social plans, and clothing shopping.
  • 20% on ‘Savings’: The final 20% can now be put towards your savings.
Author Maggie Clarke
Maggie Clarke Content Ops Lead
Maggie leads the content operations team at She is an expert on personal finance, by way of a lifetime of gathering practical knowledge on what to not do with your pocketbook. When not blogging about money, Maggie can be found rambling through the roughest terrains. She considers herself charming yet troublesome and would love to meet you someday, just not today.
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