Beat the "Can't Save Money" Anxiety: Master 3 Mindsets to Watch Your Savings Grow Steadily

1. From “Spend First, Save What’s Left” to “Save First, Spend What’s Left”

Many people, after receiving their paycheck, prioritize satisfying their spending needs — and by the end of the month, there’s barely anything left, making effective saving impossible. This “spend now, save later” pattern almost always leads to failed savings plans. Flipping this around to a “save first, spend later” strategy can truly change the situation.

Steps to Implement:

1. Set a savings target: Decide on a monthly savings amount — a good starting point is 10–20% of your income, adjusted to your personal situation.
2. Automate your transfers: Set up an automatic transfer so that when your salary arrives, this amount moves directly into a savings account. Even better, transfer it into a separate investment account rather than a regular, easy-access savings account.
3. Use what remains for living expenses: After setting aside savings, whatever is left is your disposable income for the month — this naturally keeps unnecessary spending in check.

This approach puts saving first, ensuring you steadily accumulate funds every month. You can even become a “high-class paycheck-to-paycheck” person (月光族) — spending freely within your limits with zero guilt.

2. From “Impulsive Spending” to “Rational Spending”

In an era of material abundance, impulse buying has become the norm. These unconsidered purchases are often the primary reason we can’t save money.

Steps to Implement:

1. Distinguish needs from wants: Before buying anything, ask yourself: is this a “need” or a “want”? Needs are life necessities; wants are desires that aren’t essential.
2. Make a shopping list: Write out a list before going shopping to avoid being tempted by promotions into buying things you don’t need.
3. Practice delayed gratification: Give yourself a waiting period for non-essential purchases — say, one week. If you still feel you need it after that time, then go ahead and buy it.

These habits cultivate rational spending behavior and protect you from the financial pressure that comes with impulse shopping.

3. From “Short-Term Thinking” to “Long-Term Planning”

Many people manage their money by only focusing on immediate gains, lacking any long-range vision. This short-sighted mindset often keeps financial progress at a standstill.

Steps to Implement:

1. Set long-term financial goals: For example, saving enough for a down payment on a home within five years, or achieving financial independence within ten years.
2. Build your financial knowledge: Take personal finance courses, read relevant books, raise your financial IQ (財商, financial intelligence quotient), and prepare yourself for long-term investing.
3. Diversify your investments: Avoid putting all your money into a single asset. Learn to spread risk across stocks, funds, real estate, and other diversified investments.

This long-term planning mindset helps you make continuous financial progress without being rattled by short-term market fluctuations.

4. Practical Tools and Methods

To better put these mindset shifts into practice, here are some useful tools and methods:

1. Daily bookkeeping habit: Track your income and expenses every day to get a clear picture of your cash flow, which then informs better financial decisions.
2. Personal finance apps: Use mobile apps like “1 Second Everyday” or “Toshl Finance” to easily track spending and set budgets.
3. Automated saving: Set up automatic transfers to move a portion of your income into savings or investment accounts, removing the temptation to spend it first.
4. 52-Week Savings Challenge: Save a specific amount each week, gradually increasing the amount as the weeks go on — this builds a consistent saving habit.

These tools and methods help us manage finances more effectively and achieve steady wealth accumulation. (Full disclosure: I no longer use tracking apps myself — I’ve moved to a budget-based approach and happily live as a relaxed, guilt-free spender within my limits.)

5. Case Study: A Real Story — From Paycheck-to-Paycheck to Financial Pro

Xiao Mei is a 28-year-old marketing coordinator earning NT$55,000 per month (approximately USD 1,700). For the first three years, like many young people, she spent nearly every paycheck on shopping, food, and entertainment, regularly maxing out her credit cards. By the end of each month, she was borrowing money from colleagues to get by.

Then an unexpected medical bill became her wake-up call: living without savings was simply too dangerous. She started seriously learning about personal finance and implemented the mindset shifts described above. She began with the most fundamental change — “save first, spend later” — setting aside 30% of her salary every month without exception. She then started keeping records of her spending, began researching investing, and laid out a five-year financial plan.

After two years of consistent effort, Xiao Mei had not only paid off all her credit card debt but had also built an investment portfolio of approximately NT$1,000,000 (around USD 30,000), including regular monthly contributions to ETFs (exchange-traded funds) and stocks. Today, she continues to grow in her career while generating additional income from side projects and investments. This transformation didn’t just improve her finances — it filled her with confidence about the future.

Lazy Da’s Takeaway

懶大

金融科技新創 CEO | 獨立財務顧問

For many people, the biggest obstacle to saving is simply not knowing where their money is going — or not having a realistic sense of their actual spending capacity (a lack of budget awareness). The result? This month’s income is often being used to pay off last month’s expenses (credit card bills).

Adjusting your cash flow through systematic steps isn’t easy, because even just converting last month’s debt into a normal, current-month expenditure requires building discipline and forming new habits.

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