If you’re just starting out in your career, saving money might seem impossible. You have rent, student loans, bills and other expenses to pay, and not much left over at the end of the month. But saving is crucial for your long-term financial health, because the sooner you start, the more time your money has to grow. Even small amounts can make a big difference over time. Here are some tips to help you save more on an entry-level salary.

• Track your spending. The first step to saving is knowing where your money is going. Use a free app or spreadsheet to track your income and expenses for a month. You might be surprised by how much you spend on things like coffee, eating out, or parking. Once you have a clear picture of your cash flow, you can identify areas where you can cut back or eliminate unnecessary spending.
• Make a budget. After tracking your spending, make a realistic budget that covers all your essential bills and expenses, and sets limits for variable costs like groceries and entertainment. Then, automate your bill payments as much as possible, so you don’t have to worry about late fees or missed deadlines. This will also help you stick to your budget and avoid overspending.
• Save first, spend later. A common mistake is to try to save whatever is left over after paying your bills and expenses. The problem is that there might not be much left to save. Instead, treat your savings as a fixed expense in your budget, and pay yourself first. Decide how much you want to save from each paycheck, and set up an automatic transfer to a savings account. This way, you’ll be forced to live on less and save more.
• Look for savings opportunities everywhere. There are many ways to save money without sacrificing your quality of life. For example, you can make your own coffee and lunch, instead of buying them. You can paint your nails at home, instead of going to a salon. You can compare utility providers, phone plans, and insurance companies, and switch to cheaper options. You can use coupons, discounts, and cashback apps to save on your purchases. You can also look for free or low-cost entertainment options, like going to the library, park, or museum.
• Use different accounts for different goals. Depending on your savings goals, you might want to use different types of accounts to maximize your returns. For example, you can use a high-yield savings account for your emergency fund, which offers higher interest rates than regular savings accounts. You can use a tax-advantaged IRA for your retirement savings, which offers tax benefits and compound growth. You can also use certificates of deposit (CDs) for longer-term goals, which offer fixed interest rates and maturity dates.
• Save your windfalls. If you receive a tax refund, a bonus, or a cash gift, don’t spend it right away. Instead, use it to boost your savings, pay off debt, or invest in your future. You can also use it to treat yourself to something you’ve been wanting, but only after you’ve allocated a portion to your savings.
• Keep it up when you earn more. When you get a raise, it’s tempting to increase your spending and enjoy your new income. But that will only delay your progress towards your financial goals. Instead, maintain your frugal habits and increase your savings rate. You’ve already learned to live on a modest income, so keep it up as you advance in your career, and you’ll reach your goals faster.

Saving money on an entry-level salary is not easy, but it’s not impossible either. By following these tips, you can build your nest egg and unlock future possibilities. Remember, every dollar you save today is worth more tomorrow. Happy saving!