getting started with saving

Why saving money matters

It can be helpful to think about savings as different buckets of money, each set aside for a specific purpose.

Many people start with just one of these buckets.  Others may come later as your income or priorities change.  

You might have a bucket for:

• Emergencies – money set aside for the unexpected 
• Things to look forward to – hobbies, travel, gifts or experiences you enjoy 
• Future goals – things like moving out, study, larger purchases or contributing to something important for yourself, your family or your community 
• Superannuation – money invested by employers to support you later in life 

Here are some examples of what saving has helped young people do.

Why saving money sometimes feels so hard

Putting money aside sounds simple. In real life, it doesn’t always feel that way. Income can be unpredictable, expenses show up at the worst time, and it’s easy to tell yourself you’ll start saving once things ‘settle down’.

The problem is that point rarely arrives on its own. 

For some, money isn’t just personal either. You might be contributing to your family, community or sharing costs with others. That can make saving a bit more complicated, not because you’re bad with money, but because you’re balancing a lot. 

Saving can also feel harder when you’re:

• managing irregular income 
• barely bringing in enough to cover your expenses 
• paying off debt 
• juggling study, work, family and social commitments 
• still building confidence in managing money

Saving asks you to manage all of that while also thinking about the future. That can feel like a lot. 

The reality is that most people need to start saving when money is tight, so that it doesn't stay that way forever. The key is to start small. Really small.  

If you're looking at your budget and thinking, “There’s nothing left,” you’re not alone. Take a look at our article on Options for managing your money, for some ideas that could help free up a small amount to get started.  

How can I start saving money?

The best place to start is with an amount you feel confident you can repeat; something small enough that it won’t add pressure.

Your first win might be as simple as:

• putting aside a few dollars from your next pay 
• saving the amount of one purchase you'd normally make, like a coffee or takeaway 
• saving any unexpected income, like gifts or refunds 
• stashing away your coins.

In the beginning the goal isn’t the total, it’s about building some momentum. 

How much money should I save each month?

There isn't one number you’re meant to be aiming for.

How much you can save will depend on your income, living situation and responsibilities. If you're contributing to household costs, supporting family or managing irregular work, your starting point may look very different to someone else’s.

Some people choose to work towards a set percentage of their pay, such as 10%, so their savings adjusts with their income. Others just put away as much as they can week to week.  

If you’re needing to dip into your savings regularly, it's a sign the starting amount might be too high. Adjust it down until it feels sustainable. 

Where should I keep my savings?

An important part of making the habit stick is keeping your savings separate from your everyday spending.

Separating your savings can:

• create a bit of distance so it’s harder to dip into  
• reduce the mental load of working out what’s available to spend 
• help you see your progress over time 

You can do this in whatever way works for you, whether that’s a separate savings account, a different bank, a piggy bank, or even asking someone you trust to hold onto it for you.

Some people prefer multiple accounts for different goals. Others like one main savings space. It may take some experimenting before you land on a system that suits your specific circumstances.

As your savings grow, you might consider a high-interest savings account (HISA). These accounts pay higher interest on your balance, which means your money earns a little extra over time. Just make sure you check any conditions, like minimum monthly deposits or balance requirements, to make sure it fits how you manage your money. 

What should I be saving for?

You don’t need to have one specific savings goal. You might simply be working towards greater financial stability over time.

At the same time, saving for something that could genuinely improve your life, or the lives of people you care about, can be a powerful motivator.

If you’re not sure where to start with your next savings goal, try asking yourself what would make the biggest positive difference in the next few years.  

That could be:

• getting your driver's license
• attending a concert, festival or event
• a short trip or special experience
• enrolling in a course or training program
• updated technology to make work or study easier
• making a larger contribution to family or community 

Your goal doesn’t need to be big or impressive. It just needs to matter to you. 

How to turn a goal into a savings plan

If you do have a goal, it helps to turn that it into a number you can work with. There are two common ways to approach this:

Option 1: Start with what feels sustainable

You might begin by working out the most you can realistically save each pay without creating extra stress. Set that amount aside consistently. Over time, you’ll move closer to your goal at a pace that fits the rest of your life.  If you do have extra income some weeks, you could always add more.  

Option 2: Work backwards from a deadline

If you have a clear timeframe in mind, or find deadlines motivating, you can calculate what you need to save each pay to keep to it.

To do this:

1. write down your goal
2. estimate the total cost 
3. choose a realistic timeframe 
4. divide the total by your number of pays between now and the target date 
5. set up an automatic transfer for that amount, if possible.

If the amount feels unrealistic, adjust the timeline or reduce the goal. A savings plan can stretch you slightly, but if it's too aggressive it's unlikely to last. 

Review you plan every few months and adjust as your income, expenses or priorities change. If you miss a payment, start again as soon as you can. If it's not working, scale it back to something you can maintain. 

How do I stick to my savings plan?

Saving money can take a bit of discipline, but the right setup can reduce how much willpower it requires day to day. To help keep yourself going, you could try:

• Creating a small barrier. Keeping savings in a separate bank account or location can make it slightly less convenient to spend. 
• Making it automatic. Set up automatic transfers so the money moves before you see it. You can also setup a round-up feature on many banking apps that rounds up your purchases to the nearest amount set by you (e.g. $1, $5) and transfers it to a linked savings account. When it happens in the background, you don’t have to rely on motivation each week. 
• Keeping it visible. Renaming your account to ‘Emergency Fund’ or ‘New Phone’ can make the goal feel real. Tracking your progress on an app, whiteboard or poster on your wall can be surprisingly motivating. If it helps, let people close to you know you’re saving so they understand your priorities.  
• Setting milestones (and celebrating them!). Break larger goals into smaller checkpoints. Reaching smaller targets can make progress feel tangible and reinforce the habit. 
• Adjusting when life changes. If your income drops or you're struggling to make your savings targets each month, lower the amount instead of quitting completely

When might I think about investing?

Investing is generally about growing money over the long term. For some people, once regular saving becomes a habit and they have an emergency fund in place, investing becomes something they're curious about exploring.  

It’s worth mentioning here because investing has become much more accessible over recent years and some young people use small-scale investing platforms (apps) as a way to motivate them to save. Many of these platforms allow you to start with very small amounts, including round-up features that invest spare change from everyday purchases.  

It's important to acknowledge that investing is different from saving. The value of investments can rise and fall and returns on your money take time. Money that’s invested isn't always immediately accessible, so it's not a substitute for money set aside for an emergency.

If you’re interested, you might start by learning how to prepare to invest and how different investment options work. You could also ask people you know who have experience or seek advice from a financial counsellor for support.  

Saving won’t change your life overnight. What it can do is remove a small layer of stress you may not have realised you were carrying, or help you work towards something that matters to you. Starting is the hardest part, so congratulate yourself for those first few steps. Consistency matters far more than getting it perfect, and small habits can grow into something really meaningful over time.