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What are the 3 Methods of Saving?
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What are the 3 Methods of Saving?

In terms of saving, there's no one-size-fit-all method. We all have our preferences, different incomes, lifestyles, and needs that may prompt us to save; meaning, our ability to save and the methods we use will also differ.

Apart from creating the important cushion against financial emergencies, saving money can help you make large purchases, reduce financial stress, avoid debt, increase your ability to invest and improve your overall financial health.

But it is easier said than done. Saving money is not as easy as it sounds. There are many obstacles to saving which is why it requires patience, sacrifice, and discipline. 

Your purpose for saving might significantly influence your chosen method, whether it is for a short- or long-term goal.

Before you start saving, you must have a clear goal at hand. Are you saving for retirement, vacation, emergency fund, or for a project? Your objective will likely guide you on the amount you need and the duration to achieve it.

As such, these will determine the saving method that will best suit you. You can start at any time, ensuring that you remain motivated by your goal and disciplined all the way. Now, let's get down the path to saving.

Three Methods of Saving

Initially, it might be challenging to settle on a specific saving method directly when you start saving. Therefore, you can explore all the alternatives and stick to the one that serves you best.

1. Take Part in a Money Saving Challenge

A money-saving challenge can serve as a reminder and help you stay focused on doing what you need to do to reach your objective. Furthermore, these challenges are straightforward to execute. You essentially save a specific amount of money, which varies according to the rules of the type of challenge you are undertaking.

When it comes to saving, sometimes all you need is a good day's challenge to get you in the habit of doing so. You are fortunate that there are numerous money-saving challenges available for you to try.

Money-saving challenges are a fantastic way to get you to save more money by providing an incentive. They make saving money enjoyable bring you closer to achieving your financial goals. When you don't have any savings, taking part in a money saving challenge is a great way to start building your emergency fund.

You could use a savings challenge to save enough for a dream vacation, a down payment on a new home, or to purchase that outfit or item you've been eyeing for a long time.

Here are some money-saving challenges you can consider. Even so, remember to select the one that aligns with your goals. You can decide to keep the money you save through the challenge in a savings account. This guide will help you determine the best savings account to open that conveniently meets your needs.

  • The 52-Week Challenge 

You can easily follow this challenge as you have to save the specified amount each. The goal is to represent every week through the year by a Ksh100 saving (for example, Ksh100 for week one, Ksh200 for week two, and so forth). In one year, you'll have amassed Ksh137,800 in savings.

  • The 30-Days Challenge

The no-spend challenge has the potential to save you a lot of money and enable you to end overspending. You commit to a set timeframe, such as a week or month, and you only spend your money on essentials during that period. The rules are straightforward:

Rent, cooking gas, fuel, and groceries are the only things you can spend your money on during this time. Furthermore, you cannot use cash on things such as coffee, eating out, shopping, or anything non-essential.

The number of non-essential items that can creep into your everyday spending habits will surprise you after you get started. To get the best results from this challenge, keep track of your expenses in a spending journal.

  • Finding Extra Money Challenge

You might not believe you have any spare funds, but with a few simple tips and tricks, you can uncover the hidden funds you didn't even realize you had. This money challenge will motivate you to think outside the box. For example, you could cash in all of the spare change you have stashed away in your car, jacket, wallet, car, purse, or just lying around your house.

Alternatively, you could spend less than your grocery budget and add the extra money into a savings account instead. You can also make extra money by decluttering your home and selling items you no longer need. To put yourself in a position of having to save in ways that you would not normally do is the point of the exercise.

  • Coin-Saving Challenge

The coin-saving challenge is relatively easy to follow. All you need is a piggy bank or a locked container. Whenever you receive a five or ten shilling coin you put it in the piggy bank every day. You can extend it to twenty or forty shilling coins. The beauty of the piggy bank is that it will be easy to drop in your cash, but you won't be able to easily get it out. You can decide to use the amount accrued in your little bank to settle part of your debts.

2. Setting Aside a Specific Amount of Money

The second method on the list is the prevalent method of saving a specific amount of money over a specified period. As a result of its effectiveness and ease of automation, most people opt for this method.

Rather than saving a proportion of income, which requires you to calculate your savings manually, you can save a set amount in a way that is similar to "set it and forget it."

When you're working against a tight deadline, setting aside a specific amount each week, month, or pay period can be highly beneficial. Try to work with short-term goals to be more successful with this method. For example, you can decide on saving Ksh1,000 per week or Ksh3,000 per month. For the first option, you can choose to save Ksh200 over five days, or any amount that will eventually give you the desired total.

You can either decide to save this amount in a fixed deposit account and withdraw it after a specified period or put it in a Chama. Using this method can be helpful when saving for specific things like education funds or even for vacation. You can also use this method to save up for a household item.

  1. Saving a Certain Percentage of Your Income

Saving a specific percentage of your income is a common strategy for saving for retirement — but it doesn't have to end there. There are many other ways to save for retirement, just as you can use this method for different goals. For example, you can use this method to save for a property you want to purchase.

Individuals who earn a variable income will benefit from this method in particular. Instead of dedicating to saving Ksh2,000 every time you receive your salary (and failing to meet your target every time your pay decreases), you can commit to saving a specific percentage of your take-home pay each pay period.

If you follow these steps, you will not feel defeated for not keeping up with your original plan. You can save this amount in a retirement account or stocks. By the time you retrieve your cash, it will have earned some interest.

As a bonus, when working toward multiple savings objectives, you can easily split your contributions into percentages. Experts recommend using the 50-30-20 rule where 50% of your income caters to your necessities, 30% your wants, and 20% on savings. 

Out of the 20%, you should set half of it aside for retirement. You can then divide the remaining 10% across other needs. 5% of this amount can go into your emergency funds, while the remaining 5% goes into investment in the stock market or any other venture of your choice.

You can also start on the lower side by saving 10% of your income. 5% can go to your retirement account as you split the remaining 5% into other needs.


We all have different preferences in the approach we want to take on saving. What might work for one person might not be feasible for another person. If you haven't had a saving method that works for you, you can experiment with the suggestions given here. Hopefully, you might find something workable for you. You can also look into different options on where to keep your savings.

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Ian Job is an articulate writer with over four years of experience in SEO writing, digital marketing and screenwriting. Away from writing, he's probably producing an indie movie if you don't find him mentoring upcoming content writers. You can connect with him on Medium.

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