Personal Finance Basics: Saving (How to Save Money?)
Why do people save? Too often, it’s just "what's left over." For a steward, saving is intentional. It's deciding that future needs are more important than current wants. Saving is prudence. Scripture warns against the foolishness of squandering resources today without planning for tomorrow (Proverbs 6:6-8, Parable of the Talents). Saving is taking ownership of your future provision. Scripture also warns against saving and investing without being rich toward God with our finances Luke 12:13-21.
We have seen how God has provided us an income and we want to wisely consider the expenses that we have chosen to use these finances for and now we have a surplus. What are we to do with these finances? This is when saving rightly comes in.
How to Save Money: Making it Non-Negotiable
The biggest myth about saving is that it happens automatically with whatever cash is left over at the end of the month. That approach simply doesn't work because discretionary spending always expands to fill the available income.
The truth is that saving must be treated as a fixed expense in your budget—you pay your future self first.
Pay Yourself
In your Zero-Based Budget (ZBB), saving must be listed as an expense right after your giving/tithing, but before your groceries, gas, or entertainment.
Tithing/Giving: Honor God first with your tithe.
Saving: Allocate a set amount (e.g., $100 for your Emergency Fund) and move it immediately.
Expenses: Distribute the remainder of your income to bills and variable costs.
If you don't list savings as a bill, you will spend it.
Automate Your Savings
The best way to eliminate human error and temptation is to automate the process.
Set up an automatic transfer from your checking account to your dedicated savings account to occur on the day you get paid. This ensures the money is moved before you even see it or have a chance to spend it.
Automate your retirement contributions (401k/Roth IRA) directly from your gross paycheck once you are ready to save for retirement.
Attack the "Leaky" Variable Expenses
The fastest way to increase your savings rate is by performing a ruthlessly honest Expense Audit (tracking every dollar spent). The cash found in these "leaks" should be immediately redirected to savings.
Cancel Unused Subscriptions: Review your bank statements for memberships and streaming services you no longer use.
Reduce Dining Out: This is often the largest single leak in any budget. Pack lunch and meal plan aggressively to redirect hundreds of dollars back into savings.
Recommended Savings: Following the Financial Map
Saving is not just one pile of money; it serves different, distinct purposes. You must save in stages to align with your overall financial roadmap (the Baby Steps or similar methodology).
The key is to save one type of fund completely before moving to the next objective.
The Three Purposes of Saving:
Defense (The Emergency Fund): This is purely for protection against unexpected events.
Offense (Sinking Funds): This is for planned future large expenses.
Future Impact (Investing): This is for retirement and building wealth.
Other Good Reads:
From Avoidance to Action: How to Build a Budget that Works
The Overflowing Harvest: How Giving Actually Makes You Richer
Emergency Savings: Your Financial Safety Net
Emergency savings is your non-negotiable defense fund. It prevents life's inevitable setbacks from forcing you back into the financial servitude of debt.
The Starter Fund ($1,000)
Your absolute first priority once you have stopped taking on new debt is to save $1,000 as quickly as possible.
Purpose: To cover small, common life emergencies (a car repair deductible, a broken appliance, a medical co-pay).
Speed: Attack this goal with intensity. Sell items, work overtime, and cut expenses ruthlessly until this account is funded.
Sacred Rule: Do not touch this money for anything that is not a true emergency. If you use it, replace it immediately.
The Full Emergency Fund
Once you have eliminated all consumer debt (your Debt Snowball is finished), your next priority is to save your Full Emergency Fund.
Goal: Save enough to cover 3 to 6 months of your total living expenses.
Purpose: This fortress protects you from catastrophic loss, such as job loss, major illness, or an economic crisis. It provides time to find work without having to panic or liquidate your retirement investments.
Where to Save Money (Defense)
Emergency funds should be:
Liquid: Easily and quickly accessible without penalties.
Secure: Held in an FDIC-insured account.
Recommended: A high-yield savings account (HYSA) at an online bank. This keeps the money separate from your daily checking account (reducing temptation) while earning a modest interest rate. Do not put your emergency fund into stocks or complex investments.
When to Save Money: The Order of Operations
You cannot successfully save for everything at once. You must follow a sequential order of operations:
You should only be working on one major goal at a time to maximize focus and momentum.
Good Resources:
Investopedia: What Is a Savings Account and How Does It Work?
Tips for Saving Money
Once your defense is secure (Emergency Fund fully funded), you can move into saving for offense and future impact.
Sinking Funds
A Sinking Fund is a tactical savings account used to save for large, known, non-monthly expenses. These are often forgotten in a typical budget and derail progress when they hit.
Example: If your auto insurance is $1,200 annually, you save $100 per month into a "Car Insurance Sinking Fund." When the bill arrives, the cash is ready.
Common Sinking Funds: Christmas gifts, annual insurance premiums, car maintenance/repairs, or saving for a down payment.
Save for the "Big Three" Investments
This is the ultimate long-term savings strategy, focused on building wealth for future generosity and security.
Retirement: Fund your 401(k), Roth IRA, or other tax-advantaged accounts up to 15% of your gross income.
College: If you have children, save for their education using tax-advantaged accounts like a 529 plan.
Mortgage Payoff: Systematically attack your mortgage principal after all other goals are funded.
Saving is the key discipline that separates those who merely earn a living from those who build lasting wealth for the Kingdom's purpose. By treating savings as a non-negotiable expense, you are honoring God's provision and securing your financial future.
Ready to start saving? Click here and complete the communication from to begin your financial future today. P.S. Listen to the podcast Financial Coaching Kingdom Men, for more encouragement!
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