How to Save Money: A Simple Guide for First-Timers

Saving money might feel overwhelming, especially if you’re just starting out or rebuilding your finances after a setback. But here’s the truth: you don’t need to be a financial wizard to save. With a little planning, smart tools, and a few small changes, you can set yourself up for success—and even have fun along the way.

Let’s explore how to save money through the story of Liam, a recent college grad with big dreams and simple goals. If Liam can do it, so can you.

Meet Liam: A Recent Grad with Big Goals

Liam is 23 and just landed his dream job in marketing. He’s living at home with his parents, driving the Toyota Camry he bought from his dad for $4,000, and enjoying his mom’s home-cooked meals. He doesn’t spend much, but saving? That’s new territory.

Liam’s goals are straightforward:

1. Save for a vacation in July.

2. Surprise his parents by paying their mortgage for Christmas.

3. Build a $4,000 emergency fund.

With his parents cheering him on, Liam is ready to tackle his financial goals—and you can follow his lead.

1. Start Small, Think Big

Saving doesn’t mean you have to give up everything you enjoy. Liam began by following the 50/30/20 rule:

• 50% for needs: Gas, car insurance, and phone bills.

• 30% for wants: Occasional dinners out or new sneakers.

• 20% for savings: His vacation, emergency fund, and Christmas gift goals.

Liam automated his savings by opening a Vacation Club Account at First Alliance Credit Union. Each paycheck, a portion went straight into the account, ensuring his vacation fund would be ready when he needed it.

Ask Yourself: What’s the easiest money-saving tip you’ve tried that actually worked?

Liam’s tip: Automate savings. “If I don’t see the money, I don’t spend it.”

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2. Save Money Without Feeling Broke

You don’t have to be a penny-pincher to save money. Liam found creative ways to cut back without sacrificing his lifestyle:

• Drive smarter: Liam bundles errands to save on gas.

• Cook at home: Mom’s lasagna beats fast food any day—and it’s free!

• Ditch unused subscriptions: Goodbye, gym membership. Hello, YouTube workouts.

These small changes added up quickly. Liam saved $200 in his first month—just by making conscious choices.

Ask Yourself: What’s one expense you’ve cut out that made a difference in your budget?

Liam's Tip: Skipping coffee runs saved $100 a month. That’s $1,200 a year!

3. Add Fun to Saving with WINcentive® Accounts

Saving money doesn’t have to be boring. That’s why Liam opened a WINcentive® Savings Account at First Alliance Credit Union. For every $25 increase in his balance, he earned entries into monthly, quarterly, and annual cash prize drawings.

By the time July rolled around, Liam not only had his vacation fund ready but also won $100 in a monthly drawing!

Ask Yourself: If you could save $1,000 in three months, what would you do with it?

Liam’s answer: “Book my dream vacation—and maybe win some cash along the way!”

4. Build an Emergency Fund Like a Pro

Emergencies don’t wait for payday. Liam’s goal of saving $4,000 for emergencies felt daunting at first, but he broke it into smaller steps:

• Set milestones: Start with $1,000, then work up to $4,000.

• Use windfalls: Holiday bonuses and birthday money went straight into his emergency fund.

• Stay consistent: Liam saved $100 from every paycheck. In less than a year, he hit his target.

An emergency fund gave Liam peace of mind. He knew he could handle unexpected car repairs or medical bills without stress.

Ask Yourself: How do you decide between saving for the future and spending on what you love now?

For Liam: balancing both made saving more rewarding.

5. Make Saving Goals Personal

Liam’s favorite part of saving is knowing it’s for something meaningful. His goals—treating his parents to a mortgage-free month, taking a vacation, and feeling financially secure—kept him motivated.

To stay on track, he opened a Holiday Club Account at First Alliance Credit Union. Every month, he deposited a little extra. By November, the balance transferred into his checking account—just in time to surprise his parents for Christmas.

Ask Yourself: What’s your first savings goal?

Liam’s advice: “Make it personal. Saving feels easier when it’s tied to something you care about.”

6. Track Progress and Celebrate Wins

Liam didn’t just save—he tracked his progress with tools from First Alliance Credit Union. Budget calculators helped him see where his money was going, and setting up alerts ensured he never missed a deposit.

Every milestone felt like a victory. When Liam hit $1,000 in his emergency fund, he treated himself to his favorite ice cream. Celebrating small wins kept him motivated for the long haul.

Ask Yourself: What’s your favorite tool or app to stay on track with saving?

Start a budget today!

Your Savings Journey Starts Now

Saving money isn’t about perfection—it’s about progress. Like Liam, you can build better habits, set meaningful goals, and use tools like WINcentive® and Club Savings Accounts to make saving exciting and achievable.

Whether you’re saving for a dream vacation, a rainy day, or a heartfelt gift, First Alliance Credit Union is here to help. Ready to start? Visit our website to explore savings options and take the first step toward your goals.

What will you save for first? Share your story with us—we’d love to celebrate your progress!