5 Tips to Save Money in 2026

January 15, 2026 - 8 min read

The new year brings new opportunities to improve your finances. Here are 5 strategies backed by personal finance experts that you can implement today.

1. Know exactly where your money goes

The first step to saving is understanding what you spend on. Many people are surprised when they see their expenses categorized for the first time.

In his book "I Will Teach You to Be Rich", Ramit Sethi explains it clearly:

"You can't optimize what you don't measure. Most people have no idea how much they spend on restaurants, subscriptions, or impulse purchases."

Practical action:

• For one week, track absolutely everything you spend
• Categorize your expenses: needs, wants, and savings
• Identify "phantom expenses" (those small purchases you don't notice but add up)

Use an app like Budpoint to make this process automatic and frictionless.

2. Implement the 50/30/20 rule

This rule popularized by Senator Elizabeth Warren in her book "All Your Worth: The Ultimate Lifetime Money Plan" helps you distribute your income in a balanced way:

Why does it work?

This distribution allows you to cover your needs, enjoy life without guilt, and build your financial future simultaneously. It's not about depriving yourself of everything, but finding balance.

Tip: If you currently can't allocate 20% to savings, start with what you can (even if it's 5%) and gradually increase each month.

3. Automate your savings

In "The Automatic Millionaire", David Bach introduces the concept of "paying yourself first":

"The difference between people who build wealth and those who don't isn't how much they earn, but that they automate the savings process before the money reaches their hands."

The problem with manual saving: When you wait to "see what's left" at the end of the month, your brain finds a thousand justifications to spend that money. Willpower is a limited resource.

The solution:

1. On the day you receive your paycheck, automatically transfer a percentage to your savings account
2. Treat that money as if it doesn't exist
3. Live on what's left

Interesting fact: According to behavioral economics studies, people who automate their savings accumulate on average 3 times more than those who do it manually.

4. Distinguish between your expenses and others'

This is a concept that few finance books address, but it's fundamental to maintaining an accurate budget.

The problem: When someone asks you to buy something for them, that money leaves your account but it's not really your expense. If you count it as yours, your budget becomes distorted and you lose real visibility into your finances.

Example:

• Your friend asks you to buy them something for $500
• That $500 leaves your account
• If you count it as your own expense, it looks like you spent $500 more this month
• Your "wants" budget is unfairly affected

The solution with Budpoint:

• Mark who owes you every time you pay for someone
• Your budget only counts expenses that are truly yours
• You have total clarity about how much you spend on yourself vs. how much you lend

As Morgan Housel says in "The Psychology of Money":

"Managing money isn't about math. It's about behavior. And behavior is hard to teach, even to really smart people."

Having clarity about what's yours and what isn't is part of that smart behavior.

5. Review and adjust monthly

In "Your Money or Your Life", Vicki Robin emphasizes the importance of conscious review:

"Money is something we exchange our life energy for. Every monthly review is an opportunity to ask yourself: am I trading my life for the right things?"

Your 15-minute monthly ritual:

1. Review your progress vs. your goals

   • Did you reach your savings goal?
   • Which categories did you overspend?

2. Identify patterns

   • Are there recurring expenses you no longer need?
   • Any forgotten subscriptions?

3. Adjust for next month

   • Is there a big expense coming? (birthdays, vacations)
   • Can you increase your savings percentage?

4. Celebrate your wins

   • Acknowledge progress, even if small
   • Motivation comes from seeing results

The best time is today

In "The Richest Man in Babylon", George S. Clason wrote a truth that remains valid after almost 100 years:

"A part of all you earn is yours to keep. It should be not less than a tenth no matter how little you earn."

You don't need a perfect plan to start. You don't need to earn more money. You don't need to wait until next month.

The best time to improve your finances was 10 years ago. The second best time is today.

Additional resources

Recommended books:

• "I Will Teach You to Be Rich" - Ramit Sethi
• "The Psychology of Money" - Morgan Housel
• "The Automatic Millionaire" - David Bach
• "Your Money or Your Life" - Vicki Robin
• "The Richest Man in Babylon" - George S. Clason

Join the Budpoint waitlist and be the first to try the app that will help you take control of your money.

Related:

• Welcome to the Budpoint Blog