How do you start saving when there's never anything left at the end of the month?
I'm Marranita. For months I waited until the end of the month to see what was left, and there was never anything. I wish someone had told me this before I started saving, so I'm telling you.
MarranitaYour goals and what you put away.
Updated
Saving isn't keeping what's left over
Saving “whatever's left” sounds reasonable, but it almost never works. Spending adjusts to the money available: if it's in your account, something always comes up to use it on. A delivery, a night out, a sale. At the end of the month it's not that you were wasteful: it's that nobody gave your savings a place.
The change that worked for me was flipping the order. Instead of income, spending, savings, I switched to income, savings, spending.
1. Set it aside first, then spend
On payday, move your share before you buy anything. What's left is what you spend. If you can, put it in a separate account or pocket from the one you use every day, so it doesn't get mixed in; and if your bank lets you schedule the transfer for payday, even better, because it doesn't depend on willpower.
At first it feels strange to have “less” for the month. After a few weeks you get used to it, and the money you set aside stops feeling like something taken from you.
2. Give it a name and a date
“Beach trip in December” gets done. Plain “saving” almost never does. A name reminds you what you're saving for, and a date tells you how much to set aside each time: divide what's left by the paychecks or weeks remaining.
With a name and a date you also know whether you're on track. If you fall behind, you adjust the amount or the date instead of feeling like you failed and giving up.
3. Your cushion first, then the trip
One month of essential expenses saved keeps you from paying for a scare with a credit card. Essential expenses are the ones you can't skip: rent, utilities, food, transport and loan payments. Add them up and that's your first target.
Without that cushion, any surprise, like a repair, a doctor's visit or a month with less income, ends up on the card or as a loan, and the debt eats what you were going to save. With it, the scare gets paid and your goals stay intact.
4. A little, always, beats a lot, never
A fixed amount every paycheck, even a small one, builds more than a big amount you only set aside when you remember. What matters at first is the habit: setting money aside is the first thing that happens every payday. When your income goes up or you finish paying off a debt, raise it a little.
If you want to know how much to save each week to reach your goal on time, in Oslo you can ask the assistant (it comes with the Personal plan) and it answers with your own numbers.
Frequently asked questions
How much of my salary should I save?
There's no percentage that fits everyone. The most useful thing when you're starting is to choose a fixed amount you can keep up every payday, even a small one, and set it aside before you spend. When your income goes up or you finish paying a debt, increase it. Consistency builds more than a big amount you can't maintain.
What comes first, an emergency fund or saving for a goal?
For many people, the cushion comes first. One month of essential expenses saved, such as rent, utilities, food, transport and loan payments, keeps a surprise from landing on your credit card and eating your other goals. While you build it, you can set aside a little for your goal so you stay motivated.
Where should I keep the money I save?
What matters most is keeping it separate from the money you use every day, so it doesn't blend into your monthly spending. It can be a separate savings account or a pocket inside your bank app. Choose an institution supervised by your country's financial regulator, and be wary of any promise of quick or guaranteed returns.
This is financial education, not advice: Oslo doesn't recommend loans or investments. Decisions about your money are yours.
