I’ve struggled with saving my money ever since I got my first paycheck. I love to go shopping and spend money on my friends, which isn’t too great for my wallet. Now that I’m older and have to start paying bills, I figured that I should probably start learning how to be more responsible with my money. 

I didn’t really know where to start, but my Personal Finance class gave me the starting point I needed. We started logging any money we make and spend in a chart. I then took this chart and added some more categories to it to fit my needs. Here is an example of what I logged:

Tracking the flow of money in my life really helped me to understand just how much I spend, and allowed me to understand that I don’t really need to buy as much as I used to. I started to sound like my mom, convincing myself that “we have food at home” and that I don’t actually need yet another tote bag. 

Tracking your cash

I learned that tracking the flow of cash in my life was pretty difficult since there was no digital record of it. I asked around for some help, and came up with three different ways to keep track of cash:

1. Store your receipts 

This is the method that works best for me right now. If you keep all of the receipts from cash transactions in an envelope, you can look back at them in case you forgot what you spent, and when. I like to keep the envelope in my car so I always know where it is. You can also pair this method with the following one.

2. Budget your cash

This is great when you have a steady income of cash. For this method, you divide up your cash into different categories. For example, you could put $20 each week into an envelope labeled “Snacks,” and $30 into one labeled “Gas.” 

3. Save it 

I used this when I was saving up for my study abroad trip. I was working as a server at the time, so I made lots of cash in tips in addition to my bimonthly payment. I would use any money in my bank account to buy things, and I would save all the cash I made in a jar. Every once in a while I would use some cash for gas, but I left it alone aside from that. Using this method, I was able to save over $2000 in just three months and still was able to indulge in my shopping habits.

Setting up a savings account

A savings account is a great way to–shocker–save money! Setting up an account is actually much easier than you might think. The most important thing is to find a bank that you think will best fit your needs. You’ll want to look for accounts that have a high Annual Percentage Yield (APY) because, to put it simply, the higher the APY, the more money the bank will add to your account over time. Finding an account that doesn’t have a withdrawal fee is also nice, especially if you like to travel. Another notable aspect to look at is the minimum amount of money you can have in that account without paying any fees. 

Start saving

The hardest part of saving money, in my experience, is figuring out where to start. My recommendation is to just begin with tracking your money. Learn your spending habits, find any patterns in your money flow. Here I’ve linked a 10 week spending log that you can make a copy of and use for yourself. 

After logging your spending for some time, try using what you learn to start saving. If you notice that you spend most of your money on the weekends, try leaving your cash at home when you go out, or make plans that don’t require spending. Opening a savings account is also a great way to make sure you don’t spend too much money, and depending on the APY, it might even help you make a little money. 

Having good financial management skills is something that many people struggle with. Starting when you’re young can help build a solid foundation for your future, so why not try it for yourself?