When it comes to personal finance, I was largely ignorant until I was in my mid-20s. I have been in school for more than half of my life, and I never received proper money management training. My income came in the form of hourly wages or a stipend for working in an academic lab, but I did not see any point in saving money — there was very little left every month after paying rent and going out. Well, one of the upsides of the COVID-19 pandemic in 2020 was that quarantine gave me ample time to reflect on my life, and it helped me realize that life is too precious to live day by day. I started taking my health and my finances more seriously, and I realized there are so many learning resources online if you are willing to be proactive. Nobody can force you. It is entirely up to you.
Here, I want to share three money-saving habits that kept coming up as I taught myself. I have stuck with them no matter what. This list is not exclusive or noble. You have probably heard all of them before — from an elder, or somewhere on social media. Other advice may work well for you and not for someone else, and that is fine. But the key to building financial freedom, for me, comes down to one principle: KISS. Keep it simple, stupid. You should not have to pour your time and energy into this. The whole point of a financial goal is to look at the long haul.
Save before you spend
There is no strict rule about what proportion of your salary to save. I never understood how one number could apply to every income and every situation. For higher income brackets, putting aside 10% or even 20% of your monthly income is practical. But it is nearly impossible if a large portion goes to rent and groceries — especially on the East Coast, where the cost of living is disturbingly high. My own income has increased drastically since I finished graduate school and entered the pharmaceutical industry. I could not have afforded my rent and groceries on my humble monthly stipend if I had applied my current saving discipline back then. The long-term goal shifts with every income bracket. And then there is life itself — I recently became a dad, which means I now have another dependent to support. With that life-changing event, I am adjusting my saving and my long-term finances.
To make the most of what you have, you need to be realistic about your timeline and your lifestyle at your current capability. I used to treat myself to delivery food every weekend back when I was a bachelor. It usually cost $30 to $60, depending on the cuisine or how hungry I was. Now, every meal costs double — and as a couple, my wife and I sometimes choose to cook at home and make it a stay-at-home Netflix date night instead. You can always adapt to a different lifestyle and still be happy.
This takes some time, and you might dwell on where you are right now. But remember: everyone is different, and life is a long-haul game. Nothing is permanent, and you can always look forward to changing the way you spend your time and money in the future.
So no judgment is needed. Just save what you can. There is no single number that works for everyone, and you can start small. No one needs to know. This is your journey, and one day you will look back and remember where you started. It is a lifelong adventure, and you are taking the first step. It does not need to be grand, and you do not need to be scared. Financial planning is not glamorous, and it is not intimidating either. You just do it when you can. That is it.
The amount can change whenever it needs to. We all have rainy days with unexpected expenses, so think of this as both a long-term commitment and a flexible one. On good months I put aside over $1,000; on lean ones I settle for $20. Yes, it does not feel good — but I never let a month go by with a $0 transfer to my savings account. There is no penalty for pausing. But do not quit. You will regret it later if you stop putting your money to work for you — the compounding effect is real. There are online tools that help you visualize a tangible goal and watch how every dime multiplies over time.
Automate it and forget
This is the key to sustainability. You need to make it effortless. You can schedule a set amount to move from your checking account into a high-yield savings account or a brokerage account. But before anything else, get some finance 101 knowledge from online resources — there are numerous YouTube videos I found useful, and they are easy to follow even if you are not familiar with financial jargon.
Currently, the APY (annual percentage yield) on a high-yield savings account is around 4%. That is far higher than a regular savings account, which hovers somewhere around 0.01% to 0.6%. You can imagine what a difference that makes as your money accumulates over time.
You can even schedule a set amount for an ETF (exchange-traded fund) investment. You have probably heard advice about diversifying your portfolio. I personally like to weight more heavily toward ETFs to track the overall trend of the US stock market, which has historically averaged roughly 10% a year. My current strategy is a 7:3 split between ETFs and individual company stocks, which I sort into a few areas — AI, retail, energy. I am not a financial advisor, and it is not my intention to tell you any specifics — so do your own homework and build the plan that fits you.
Once the system is built, it is incredibly easy — you sit back and focus on other things. It is the same idea as losing a few pounds. The easiest steps are clearing out the snack pantry and making the gym a routine. You set up two systems, and you stick with them. That is it.
The best approach is a routine, unbreakable system you can rely on. It is tempting to be ambitious at first when you set the amount. I get it. I remember having to reduce the amount I transferred after the first month, once I realized it was not sustainable. What is important is that you start somewhere — no matter how small.
Document and monitorIt is fine to withdraw when you need to. Life happens. But monitor your financial activity — not your expenses, your savings specifically — so you can see how much each deposit and withdrawal affects the overall goal. You do not need a fancy tool. A simple Excel spreadsheet does the job.
It is a good exercise to run simulations from time to time. It makes you conscious of how compound interest builds wealth. There are many online calculators for this, such as NerdWallet’s compound interest calculator (https://www.nerdwallet.com/banking/calculators/compound-interest-calculator).
It also helps you psychologically. As you become more financially literate and watch your savings grow, the dream of financial freedom and retirement becomes realistic. And beyond looking forward to what you can still build, you can be grateful for how far you have come. The number was never the point. The momentum is.