Although many people want to save money, only a few people actually do. And many people who don’t save think it’s because of their income. It’s not; it’s about not having a proper savings plan.   

Whether you're earning your first salary, freelancing across borders, or sending money home while building wealth, a savings plan is the foundation for everything else. This guide will show you exactly how to build one that works.

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Step 1: Calculate your numbers

Before you save a single cent, you need a clear picture of your financial situation. That means adding up everything that comes in and everything that goes out.

Start with your income. Everything you earn from either your salary, freelance payments, or side income. Then list your fixed expenses (rent, subscriptions, loan repayments) and your variable expenses (groceries, transport, eating out). The difference between your income and your total expenses is what you have to work with.

Most people are genuinely surprised when they do this for the first time. Hidden subscriptions, impulse purchases, and avoidable fees add up fast. Seeing the numbers clearly is usually enough to change behaviour.

What to track:

• All income sources (monthly, or averaged if irregular)
• Fixed monthly costs — rent, utilities, loan payments, subscriptions
• Variable monthly spending — food, transport, entertainment
• Money sent home or transferred internationally

You don’t need a fancy financial tracking app for this. You can start with your notes app or a simple spreadsheet. 

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READ: Best Digital Tools for Tracking Your Finances in 2026

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Step 2: Define what you're saving for

A savings plan without a goal is just money sitting idle, and sometimes that’s ok. The money might eventually come in handy, but goals give your savings purpose,  and purpose is what keeps you going when the temptation to spend arrives.

Think in three time horizons:

Short-term (under 12 months)

• Emergency fund (3–6 months of living expenses)
• Travel
• A specific purchase or expense is coming up

Medium-term (1–5 years)

• Sending money home to support a family, project, or business
• Moving to a new country
• Education fees

Long-term (5+ years)

• Retirement or financial independence
• Property
• Building generational wealth

You don't have to pick just one. Most people save toward several goals at once,  but be specific. "Save more" is not a goal. "Save $3,000 for an emergency fund by December."

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Step 3: Choose a savings method that fits your life

There are several frameworks for deciding how much to save. The right one depends on your income structure and lifestyle.

The 50/30/20 Rule: Allocate 50% of your income to needs, 30% to wants, and 20% to savings and debt repayment. This is a solid starting point for people with a stable monthly income. The 20% covers both building savings and paying down any debt — two things that work together to improve your financial health.

Pay yourself first: Move a fixed amount into savings the moment you're paid, before you spend anything else, and make it non-negotiable. This works especially well if you struggle with spending what's available, because it removes the decision entirely.

Percentage-based saving for irregular income: If your income varies, as it does for freelancers and self-employed people, save a fixed percentage of each payment rather than a fixed amount. Even 10% or 15% saved consistently builds up faster than you'd expect.

For example, if you receive a $500 payment, $75 goes straight to savings. If you receive $2,000, $300 goes to savings. 

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Step 4: Automate where you can 

Willpower is unreliable. Automation is not.

Set up automatic transfers from your main account to your savings account on the same day you get paid. If you're saving toward multiple goals, consider using separate savings buckets. Most modern banking and fintech apps allow you to create named sub-accounts or pots for different goals.

Automation removes the friction and the temptation. The money moves before you see it, and you adjust your spending to what's left. Over time, this feels completely natural.

Tools that help:

• High-yield savings accounts — earn interest while your money sits
• Multi-currency wallets — ideal if you earn or save in more than one currency
• Automated savings apps — round up purchases and save the difference
• Scheduled bank transfers — set and forget

Step 5: Build your emergency fund first

Before you save for any other goal, build an emergency fund. This is your financial cushion: money set aside for unexpected expenses. 

The standard recommendation is to save 3 to 6 months of your essential living expenses. For migrants and people supporting family back home, lean toward the higher end; your financial obligations often extend beyond just yourself.

Keep your emergency fund in a separate account that's accessible but not too easy to dip into. High-yield savings accounts are ideal; your money earns interest while remaining available if you need it.

Why this comes first: without an emergency fund, any unexpected expense puts you in debt or wipes out whatever you've saved elsewhere. The emergency fund is what makes every other part of your financial plan stable.

Step 6: Review and adjust regularly

A savings plan isn't a one-time exercise. Life changes, your income could go up or down, goals shift, and unexpected things happen. Your plan should change with it.

Set a calendar reminder to spend 15 minutes reviewing your finances once a month. Check that your automated savings are running, look at whether your spending has shifted, and see how you're progressing toward your goals. Once a quarter, do a deeper review: are your goals still the right ones? Does the amount you're saving still make sense?

Small, consistent adjustments over time make a much bigger difference than occasional dramatic overhauls.

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What to keep in mind as a global money maker

If you're an immigrant, a student abroad, a freelancer, or someone regularly sending money across borders, your savings situation is more complex than most. You're managing money in multiple currencies, juggling obligations at home and abroad, and often navigating financial systems that weren't built with your situation in mind.

A few things that matter specifically for you:

• Save in the currency you plan to spend in. If you're building an emergency fund in the UK, save in GBP. If you're working toward a goal back home, consider saving in that local currency.
• Account for remittances in your savings plan. If you send money home monthly, that's a fixed financial obligation; plan around it, not after it.
• Use tools built for cross-border money management. Multi-currency wallets and low-fee transfer services mean you lose less of your money to fees and exchange rate margins.
• Be intentional about what your savings are and what's transferable. They're different buckets with different purposes.

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Finally

Starting a savings plan doesn't require a windfall, a financial advisor, or a perfect income. It requires clarity about your numbers, specific goals, a simple method, and the discipline to automate the rest.

The best plan is the one you actually follow. Start with what you have. Automate what you can. Review it regularly. And build from there.

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Remember,  Pesa helps you send money home, manage multiple currencies, and save smarter,  wherever you are in the world.