Introduction
On October 31, we celebrate World Savings Day. Despite being a fundamental habit in personal finance, many of us struggle to cultivate it. With 38.8% of the population having only informal savings and 39.8% having no savings at all, according to the National Survey of Financial Inclusion (ENIF) 2024, it’s clear that traditional methods aren’t working for everyone. Here are ten creative and effective ways to help you achieve your savings goals without feeling deprived.
Who is Karem Suarez and Why is She Relevant?
Karem Suarez, an administrator and content creator focused on personal finance, presents these unconventional savings methods in a video. She emphasizes that combining psychology, creativity, and discipline can finally help individuals reach their savings goals.
10 Creative Savings Methods
1. The 10% Rule in Reverse
This method involves saving 10% of your income at the beginning of each month. It’s based on the widely-recommended personal finance advice to “pay yourself first.” Instead of waiting to save what’s left at the end of the month, this approach acknowledges that people rarely have anything leftover.
To make it more diverse, save 10% from a different budget category each month, like entertainment or non-essential purchases. For example, if you budget $1,000 for an outing and spend only $900, save the remaining $100.
2. Paying a Fictional Rent
This technique creates a constant payment obligation, even if your financial situation changes (e.g., finishing mortgage payments or moving to a cheaper rental). The idea is that humans tend to fulfill obligations, so maintaining this consistent spending habit directs the money towards savings instead of a real rent or mortgage.
Assign a clear goal to this saved money, such as building an emergency fund, making your first investment, or working towards a long-term objective.
3. Financial Fasting Technique
This method uses restriction to generate positive outcomes. Choose a week each month (even just Monday through Friday) to cut all non-essential or impulsive expenses.
Write down the items you’d have bought impulsively and “set aside” that money for savings, preventing the “bounce back” where restriction leads to excessive spending the following week.
4. Diversifying Consumption
Switch one of your preferred spending plans (like going out to eat or seeing a movie) each week to much more affordable or even free alternatives.
Instead of going to the movies, make popcorn at home and watch a film. The money saved from the pricier plan should go towards your financial goals.
5. Budgeting Based on Enjoyment, Not Restriction
Change the conversation around saving from a sacrifice to something enjoyable.
First, identify and cut unnecessary expenses that were thought to bring happiness or peace but ultimately weren’t worth the cost. Then, list genuine sources of happiness that improve your quality of life.
Your budget should help pay for things that truly bring joy and cut unnecessary or insincere expenses.
6. Saving Based on Micro-Rewards
Since humans are motivated by goals and milestones, this method suggests rewarding yourself with something you enjoy when savings targets are met (e.g., eliminating impulsive spending for a week or saving a specific amount).
The reward should be low-cost and not necessarily monetary (e.g., listening to a favorite song or taking a park stroll). This links saving to something positive.
7. One Day for Every 100
This rule postpones immediate gratification.
For every 100 units of currency a non-essential purchase costs, wait a day before buying it. If something costs 200, wait two days; if it’s 500, wait five days.
This delay calms impulsive buying tendencies, allows for better review of the purchase, price comparisons, and ultimately leads to more thoughtful, “cooler-headed” decisions.
8. Saving as a Couple
Balance enjoyment with saving by agreeing to save the same amount spent on an outing (e.g., $20) whenever you go out and spend that amount.
This rule encourages more mindful spending, as every enjoyment-related expense contributes equally to your savings fund.
9. Saving Through Games (Gamification)
Set simple, easy-to-remember rules to turn the savings process into a game.
Gamification encourages better financial behavior by making saving fun.
Save every coin from change received after purchases made on Tuesdays or save all bills of a single denomination (e.g., all 2000 bills received in a period).
10. Relating Purchases to Work Hours
First, calculate the value of your work per hour.
Before making a purchase, consider how many hours of work it will cost. If something costs 130 pesos and your hourly rate is 45 pesos, that purchase equates to almost 3 hours of work.
Measuring purchases in terms of time (the most valuable resource) helps discourage unnecessary buying.
Why is Saving Important?
The National Commission for the Protection and Defense of Users of Financial Services (Condusef) states that without tracking expenses or creating a budget, practicing saving becomes difficult. Without making saving part of a goal to be nurtured, maintaining the effort and willpower to save in the long term becomes challenging.
Conclusion
Choose two or three methods that align with your lifestyle and needs, as individual finances vary. What works for one person might not be ideal for another.
