How to start saving money

In economically turbulent times, saving money can feel like trying to hit a moving target. But it's more important than ever to start saving — and build a bit of financial breathing room. 

In this guide, we’ll show you how to get started so you can spend smarter, set realistic goals (that you can actually meet!) and find a way to save that works with your life — even when the economy isn’t on your side.

Saving money — especially in uncertain times — begins with getting your money organized. You might think of saving as cutting back, but it’s really more about putting together a system that allows you to stay consistent and save money effectively. You don’t need anything fancy, just a rough framework that helps you direct your money where you need it to go.

One easy way to start building that system is the 50/30/20 rule. Aim to spend roughly 50% of your income on needs and 30% on wants, then direct the remaining 20% to savings or debt. 

This kind of simple structure can help form the heart of your financial plan. Of course, a plan works best if you’ve got the habits to support it. To make your plan work in real life, build your system around these four key habits of effective money management: 

• Track your spending: Knowing what you actually spend helps you uncover small spending leaks or patterns and allows you to see what’s working (and what’s not).
• Budget: Set up a monthly budget with a tool like Scotia Smart Money by Advice+, found in the Scotia Mobile app, to plan out how much goes to essentials, extras and savings.¹
• Automate: Scotia’s smart saving tools  — Pay Yourself First and Savings Finder — help you put saving on autopilot. These tools can help you reach your goals by automatically moving small amounts of money into your savings account (you will need to have both an eligible Scotiabank chequing account and the Money Master Savings Account).
• Review: Take time every month to assess your progress and make necessary adjustments to your budget and your goals.

Once you have a system in place, your next step is to figure out what you want it to do. Financial goals can take money management beyond a routine and further motivate your drive to save. Whether you want to save $1,000 fast or have a major purchase in mind, having a clear target for your system makes saving feel doable. 

It helps to think of your savings goals in terms of timelines:

• Short-term goals: These are goals you want to achieve in a few weeks or months, like saving that $1,000 quickly or catching up on an overdue bill. A helpful tactic for short-term goals is the 30-day savings rule — whenever you’re tempted to make a non-essential purchase, wait 30 days. If you still want it after 30 days, buy it. But if you don’t, transfer the money you would've spent into your savings account instead. 
• Medium-term goals: A consistent monthly savings plan works well with this type of goal, which might take several months to a few years, along with automatic transfers to keep you on track. Examples include replacing your car or saving for a wedding.
• Long-term goals: These include a down payment for a home, your children’s post-secondary education or retirement savings. Long-term goals require both time and consistency, and are best paired with options like high interest savings accounts, an Registered Retirement Savings Plan (RRSP), Registered Education Savings Plan (RESP) or a Tax-Free Savings Account (TFSA).

Unsure how much you need to save to achieve your goal? Try working backwards: Break the overall amount of money you need into smaller monthly or weekly targets, then build your savings from there. Ultimately, what matters the most isn’t how much money you save — it’s giving your money a clear job to do and a timeline for getting there. 

Investing is one of the best ways to grow your savings over time. When you invest, your money earns interest or returns and builds up over the years. The best part? You don’t need a lot of money or experience to get started — just the right tools and consistency. 

Some of the most common investment options for beginners include:

• RRSPs: It helps you save for retirement. One of the main benefits of an RRSP is that you defer paying taxes on the money you contribute and any investment income earned, until years later when you withdraw your money in retirement.
• TFSAs: It can be used to save towards retirement, but also many other goals because, unlike an RRSP, you’re free to withdraw funds at any time without penalties. The main benefit of a TFSA is that you can grow your money in it tax free.  A TFSA is a registered account that can hold a variety of savings and investment products within that account, including cash, GICs and mutual funds. 
• Guaranteed Investment Certificates (GICs): GICs work similarly to savings accounts, as you can earn interest on your funds without the risk of losing your original principal investment. Generally, how GICs work is that you agree to leave your money in them for a set term in order to earn interest.  Lenders offer GICs with a range of different terms (including some up to 5 years), so you can choose the option that works best for your investment goals. There are also some types of GICs that are a good fit for short-term savings, like a Cashable or Personable Redeemable GICs, because you have the flexibility to redeem your cash anytime.
• Mutual funds: A mutual fund is a professionally managed investment that pools money from different investors to invest in a variety of stocks, bonds, short-term money market instruments or other securities.

Each of these investment tools can play a different role in your financial plan, and you can mix and match your options based on your goals, your timeline and your comfort level. If you’re nearing retirement, options like RRSPs and GICs offer more stability and lower risk. If you’re looking for passive income, mutual funds can help your money grow with minimal effort on your part.

The key? Start small, stay consistent, and let your money do the work for you.

If you’re asking, “How do I save money in day-to-day life?” — the answer often lies in the small stuff. Focus on the parts of your routine that are quietly draining your budget, as they're usually the easiest places to start saving. It may not look like much, but it can all add up faster than you think. 

Groceries are one of the easiest ways to overspend, but a few small changes in how you plan and shop can lead to big savings. You might try:

• Planning your meals around what’s already in your fridge and cupboards
• Taking your grocery store’s weekly sales into account before creating your shopping list
• Sticking to your list to avoid impulse buys
• Using online grocery apps that track your total as you shop, so you stay within budget
• Buying items you use often in bulk when possible

Your utility bills may feel fixed, but you can usually make some small tweaks to cut back on the total. For example:

• Depending on the season, lower or raise your thermostat settings to a cooler (or warmer) but still-comfortable temperature
• Unplug electrical devices and chargers when not in use
• Replace incandescent light bulbs with LED bulbs
• Use the cold-water wash cycle for your laundry
• If you have time-of-use pricing, do high-energy usage tasks during off-peak hours
• Ask your internet and cellphone providers about promos, loyalty discounts or bundling

When it comes to things like entertainment or takeout, you don’t have to give up on fun or flavour. A few changes can make a big difference without feeling like you’re missing out. For instance, you could:

• Swap a night out each month for a free or low-cost option, like a community event
• Instead of dining out, have friends over for a potluck or do an at-home movie night
• Switch from a paid gym membership to free online workouts
• Check out your library’s apps for eBooks, movies and digital learning resources
• Plan out your meals for the week to reduce the temptation to order takeout

Fuel, parking and transit costs can really add up, but a few adjustments to your transportation habits can make a difference. Consider:

• Walking or biking when going shorter distances
• Carpooling with coworkers or friends
• Using public transit when it’s more efficient
• Planning errands so you can do everything in one trip
• Checking out discounts or frequent user passes for transit

Monthly entertainment subscriptions have become a fact of life for most people. But if you're not paying attention, you can spend a bundle on apps you're not even watching. You can trim costs with a regular review and:

• Cancel any subscription you haven’t used in the last month
• Rotate services by paying for one platform at a time and switching regularly
• Use a free trial, setting reminders to cancel before they renew
• Check for student or family plan discounts you might be eligible for

Kids bring a lot of joy, but the costs of raising them can stack up fast. Saving money as a parent doesn’t have to mean saying no all the time, though. You can:

• Shop for second-hand clothes and toys (or accept hand-me-downs)
• Choose fewer, more meaningful extracurriculars so you’re not overpaying for activities they don’t love
• Make the most of student discounts and free school-based resources
• Save child-related government benefits or credits in a separate account
• Plan meals and snacks instead of relying on more costly packaged, processed food

Paying off debt might not feel like saving, but it absolutely is. Here’s why: Every dollar of debt you pay down means less interest. This leads to lower payments, which frees up money for saving. 

Here are a few smart debt management moves to consider:

• Refinance or consolidate loans: This strategy can help reduce your monthly payments and/or secure a lower interest rate.
• Tackle higher-interest debt first: A good credit card repayment strategy is to prioritize paying off cards with higher interest rates first.  
• Check for student discounts and similar savings opportunities: You can often find discounts for things like transportation, software or memberships.
• Automate your payments: This helps you avoid late fees and stay on track with your repayment plan.

Want a deeper dive into how to pay down your debt? Read our guide on debt repayment strategies.

Frugal living often gets a bad rap, but living frugally doesn’t mean living small — or cutting all the joy out of your life. It’s about spending smarter and with intention, so you can put your money where it matters most.

You can start with a few small shifts in your spending habits. Here are a few ways to spend less while still living well:

• Shop second-hand when it makes sense (for example, when buying furniture or clothes)
• Cook more at home, including cooking ahead to have easy meals in your freezer for those busy nights
• Use credit cards or apps that offer cash back or rewards on things you’d buy anyway
• Sell items you’re no longer using through online marketplaces or community swaps 
• Take on a side hustle, such as freelance work, pet sitting or selling handmade items online for some extra income
• Don’t spend your tax refund — use it to knock down debt or build your savings

Frugal doesn’t mean cheap — it means smart, because small changes really do add up. 

With rising costs and economic uncertainty, building an emergency fund is a backup plan that matters more now than ever. Emergency savings are exactly what they sound like: It’s money you’ve set aside specifically for whatever unexpected things life might throw your way. 

You won’t touch your emergency fund unless absolutely necessary, but when the occasion arises, it’s often one of your best tools for avoiding debt in a crisis. 

A good place to start your emergency fund? A savings account. It provides a safe, low-risk place to keep your money and earns interest while staying easy to access.

Don’t stress, though, if you can’t stow away much in your emergency fund right away. Choose a realistic goal to start, like $1,000 or enough for two weeks of expenses, and then set up a regular, automatic transfer, so your fund grows quietly in the background, without you thinking about it. 

Between tariffs, price hikes, and supply chain noise, you’re probably already feeling the impact on your wallet. But when it’s hard to know what’s coming next, saving is even more important.

Remember, the best saving strategy is the one that works for you.