Saving isn't just about "stashing cash"; it's about managing your life wisely. If you can save properly, you'll have:

• Emergency funds for sudden needs
• Money for vacations or dream purchases
• Peace of mind because you're not dependent on debt

But in reality, many people still struggle to save because they use the wrong strategy, like waiting for "leftover money," when there's almost never any left.

The right way to save

1. Separate savings from daily accounts

The most common mistake is combining all your money in one account. In the end, the money intended for saving gets used for snacks, hanging out, or online shopping.

Solution:

Create a special savings account that you don't use for daily transactions. If possible, choose a digital bank with high savings interest and no admin fees. For example, Honest Savings is super easy to use daily and can help you manage your finances more neatly. Plus, the more diligent you are with Honest Savings, the more you can increase your Honest credit card limit!

2. Apply the "pay yourself first" principle

As soon as you get paid, don't immediately pay bills or shop. First step: set aside money for savings. For example, transfer 10 - 20% of your income directly to your savings account. This makes saving a priority, not an afterthought.

If it's hard to be disciplined, activate the auto-transfer feature so the money is "hidden" before you can tempt yourself.

3. Set clear savings goals

Saving without a goal is like running without a finish line, it's easy to stop halfway. Create specific goals, for example:

• Emergency fund of Rp10 million
• Vacation to Japan next year
• Down payment for a motorcycle of Rp5 million

With clear goals, you'll be more motivated and know when you've reached your target.

4. Use the 50/30/20 method

This is one of the most popular formulas for managing finances:

• 50% for needs (food, rent, bills)
• 30% for wants (entertainment, hanging out, self-rewards)
• 20% for savings and investments

If your salary is Rp5 million, then Rp1 million automatically goes to savings.

The key: discipline, not a large nominal amount.

5. Avoid saving in cash

Cash is tempting; it's easy to take out and spend. It's better to keep it in a digital savings account with high interest. Besides being safer, your money can also grow every day. Some banks even offer interest up to 5–6% per year, much higher than regular savings.

6. Use automatic financial features

Many apps and digital banks can now help you save automatically. For example:

• Auto-split to divide expenses and savings
• Goal-based saving so you can create "pockets" according to your goals
• Cashback saving, where cashback goes directly into your savings account

With an automatic system, you can "save without thinking."

7. Evaluate and increase targets regularly

Once you get used to saving, try to gradually increase the amount. For example, from 10% to 15% per month. Also, evaluate whether your savings can be transferred to other instruments like deposits or mutual funds if they get large enough.

The right way to save isn't about how big your salary is, but how disciplined you are in managing your money. Start with small things: separate accounts, set goals, and save before you spend.

With the right strategy, you can have a calmer, more organized, and stress-free financial life.

Frequently Asked Questions

1. What percentage of salary is ideal for saving?

Ideally 10–20% of your monthly income. More is great, but starting small is fine as long as you're consistent.

2. When is the best time to start saving?

Now. The sooner you start, the sooner you'll have healthy financial habits.

3. Is it better to save in a conventional or digital bank?

If you want high interest and no fees, digital banks are more profitable. But if you need ATM access and physical branches, conventional banks are still relevant.

4. Can saving help manage expenses?

Absolutely. By setting aside money at the beginning, you automatically limit your spending so you don't overdo it.

5. What's the difference between saving and investing?

Saving is suitable for short-term goals and emergency funds. Investing is more appropriate for long-term goals like retirement or buying a house.