The habit of saving is a good habit to adopt. Many people believe that: Income - Expenditure = Savings. That I think is a wrong formulation. The correction formulation should be: Income - Savings = Expenditure. Set aside the amount you aim to save first before deciding how or what to spend on. This will make you more bias towards your savings portion. Which will inevitably force you to save more over time. In my view, it is the least one should do once he/she starts to have an income. It is a habit that should be inculcated since young. Put the money that you want to set aside, at its very least, into the highest interest yielding bank one can find and is comfortable with. Get to know all the banks and saving products(SSB etc) that are available out there(esp their interest yields) so that you will have more ......