6 Things I Did That Helped Me Save 60% of My Entry-Level Salary

I have always been intrigued by the idea of gaining more control over my time and, eventually, having the option to retire earlier.

After all, working towards financial freedom is not only about earning a high salary. More importantly, it is about understanding where your money goes and deciding how much of it you want to keep for your future.

However, saving a large portion of your salary is not a realistic starting point for everyone. Your housing costs, family commitments, debt repayments and daily expenses can make a major difference.

Therefore, instead of treating another person’s savings rate as a target, it is better to build a monthly salary budget that suits your circumstances.

MoneySense recommends aiming to save at least 20% of your monthly take-home pay, or more where possible. In addition, you should work towards keeping three to six months of expenses in an emergency fund.

That gives you a practical starting point. From there, you can gradually increase your savings rate whenever your income rises or your expenses fall.

Here are six habits that helped me improve my salary budget planning.

6 Things I Did To Save More of My Entry-Level Salary

1. Open separate bank accounts and adjust my allocation rule
2. Cut my food expenses
3. Remove tempting content from social media
4. Replace my tech devices only when necessary
5. Earn additional income from manageable sources
6. Buy quality items that last
7. Bonus: Turn saving money into a personal challenge

Let me put it out there: I did not start with a particularly high-paying job.

Naturally, someone earning S$20,000 a month may find it easier to save half their income than someone earning S$2,000. Nevertheless, a higher salary does not automatically produce a healthy bank balance.

Instead, what matters is how consistently you manage, save and grow what you earn.

So, how do you budget your salary monthly when you are just starting out? These were the habits that worked for me.

1) Open Separate Bank Accounts and Adjust Your Allocation Rule

The first thing I did was simple: I separated my salary into different accounts.

Admittedly, managing several accounts may sound troublesome. However, it made my spending limits much clearer.

Whenever my salary came in, I automatically transferred money into separate accounts for:

• Savings and emergency funds
• Regular bills and necessary expenses
• Everyday spending
• Longer-term financial goals

Because my savings were moved first, I did not accidentally treat that money as available spending cash.

This approach is consistent with the “save first, spend later” method. MoneySense also recommends keeping savings in a separate account so that you are less tempted to spend them.

How Much Percentage of Your Salary Should Be Saved?

As a starting point, you can aim to save at least 20% of your monthly take-home pay.

For example, if you take home S$3,000 after CPF deductions, a starting allocation could look like this:

However, this is only a starting framework. If your essential expenses take up 60% of your income, forcing them into a 50% limit may not be practical.

Instead, begin with an amount you can maintain. Subsequently, increase it in small steps—for example, from 10% to 12%, and then to 15% and 20%.

More importantly, base your budget on take-home pay rather than your headline salary. Your take-home amount reflects what is available after employee CPF deductions and other compulsory deductions.

For Singapore Citizens and third-year Permanent Residents aged 55 or below earning more than S$750 per month, the employee CPF contribution rate is 20% in 2026. However, CPF contribution rates differ according to age, wages and residency status.

Once you understand your regular spending patterns, you can adjust the percentages to match your actual life.

2) Cut My Food Expenses

Being more mindful of my expenses made me realise how much of my salary went towards food.

Of course, saving money does not mean rejecting every gathering or eating the cheapest possible meal every day. After all, meals are an important part of catching up with family and friends.

Nevertheless, there is a difference between intentionally budgeting for a restaurant meal and ordering food out of habit.

Therefore, I started planning my food expenses around a few simple rules:

• Bring food from home when it is convenient
• Set a weekly dining-out budget
• Compare prices before making a reservation
• Use restaurant deals only when I already intend to dine there
• Avoid buying extra food merely to qualify for a promotion

For example, Burpple Beyond continues to offer 1-for-1 and percentage discounts at participating merchants. Likewise, the ENTERTAINER offers buy-one-get-one-free deals at selected restaurants and other merchants.

Alternatively, Eatigo allows users to make free reservations with time-based discounts of up to 50% at participating restaurants.

However, a discount is only a saving when you would have made the purchase anyway. If an offer encourages you to spend S$80 instead of preparing a S$10 meal at home, you have still increased your expenses.

Also, check the membership fee and redemption conditions before subscribing to any paid dining platform. Participating merchants, available deals and blackout periods may change.

Most importantly, avoid informally sharing subscriptions in ways that breach the provider’s terms. For instance, Netflix accounts are intended for people living in the same household, although eligible plans may support paid extra-member slots.

3) Remove Anything Tempting From Social Media

I enjoy looking at attractive products as much as anyone else.

Unfortunately, social-media algorithms are very good at showing us items we are likely to buy. Consequently, I found myself constantly looking at new clothes, accessories and product launches.

So, I decided to clean up my feed.

I unfollowed many retail pages, muted selected accounts and unsubscribed from marketing emails that regularly encouraged impulse purchases.

Initially, the change felt strange. However, I quickly stopped thinking about most of the launches I was no longer seeing.

As a result, I became more intentional about what I bought.

You do not have to remove every brand from your feed. Instead, start with the accounts that frequently trigger unplanned spending.

Additionally, remove saved card details from shopping apps and disable unnecessary sales notifications. Adding even a little friction can give you time to reconsider a purchase.

For larger wants, I also use a waiting period. For example, I may wait 48 hours or several days before checking whether I still want the item.

Often, the urge disappears before the waiting period ends.

4) Replace My Tech Devices Only When Needed

There are always new phones, tablets, laptops and wearables being released.

Moreover, major brands are very good at making minor upgrades feel essential. Nevertheless, a new feature does not automatically mean you need a new device.

Instead of upgrading whenever a new model launches, I now replace my devices when they no longer work reliably, no longer receive necessary security support or cannot perform the tasks I need.

For illustration, buying a S$1,000 phone every year would cost S$5,000 over five years. By contrast, keeping one suitable device for several years can free up money for savings or other goals.

That does not mean you should never buy new technology.

Rather, ask yourself:

• Does my current device still work properly?
• Will the new device solve a genuine problem?
• How often will I use the new features?
• Can I repair or replace the battery instead?
• Can I comfortably pay for it without touching my emergency fund?

Furthermore, calculate the cost per use. A device used daily for several years may offer better value than a cheaper gadget that is rarely used.

Ultimately, the goal is not to avoid technology. It is to make sure your purchase supports your needs rather than a passing urge.

5) Earn Money From Manageable Sources

Once you have reduced unnecessary expenses, the next way to increase your savings is to earn more.

Naturally, getting a pay raise can help. However, that is not always within your immediate control.

A side hustle is another option. Nevertheless, taking on too much work can lead to burnout, especially when your full-time job is already demanding.

Therefore, I prefer additional income sources that fit naturally into my schedule.

For example, you could:

• Sell unused clothing, furniture or electronics
• Take on occasional freelance projects
• Tutor subjects in which you have relevant experience
• Offer a practical service based on an existing skill
• Participate in legitimate research studies or surveys

Platforms such as Carousell can help you sell items that you no longer use. Consequently, you may earn some money while clearing space at home.

However, be careful with “easy money” platforms. Before giving an app your personal information, check who operates it, how payments work and what data permissions it requests.

Additionally, never pay an upfront fee to secure a supposed job or task. Such requests are a common warning sign of a scam.

Although irregular side income may improve your finances, do not build your essential monthly budget around money that is not guaranteed. Instead, use your regular salary to cover recurring commitments.

Then, whenever additional income arrives, you can direct part of it towards your emergency fund, debt repayment or longer-term goals.

6) Buy Quality Items

When I was a student, the lowest price often mattered most.

However, I gradually realised that the cheapest item was not always the most economical one. If something breaks quickly, you may have to replace it several times.

Therefore, I now consider durability and cost per use rather than looking only at the price tag.

This is especially useful for frequently used items such as:

• Shoes
• Work bags
• Basic clothing
• Kitchen equipment
• Mattresses and furniture
• Devices needed for work or study

Of course, an expensive item is not automatically a high-quality item. Accordingly, compare reviews, warranty coverage, repairability and materials before buying.

Moreover, consider buying refurbished or second-hand products from reputable sellers. You may be able to get a durable item without paying the full retail price.

At the same time, do not use “buying quality” as an excuse to overspend. If an affordable item already meets your needs and will last, paying more may not provide meaningful value.

The most useful question is simple: how much value will I receive over the item’s usable life?

Bonus: See Saving Money as a Motivation or Challenge

Without a clear system for learning about money, it is easy to feel embarrassed about your budgeting habits.

Furthermore, if your finances cause stress, you may be tempted to avoid checking your accounts altogether. Unfortunately, avoidance usually makes the problem harder to solve.

What helped me was learning about personal finance through trustworthy websites, videos and podcasts.

As I became more financially literate, I also became more confident about making decisions.

In addition, I started turning selected financial goals into small challenges. For example:

• Have one no-spend day each week
• Reduce food-delivery orders for one month
• Increase monthly savings by one percentage point
• Sell five unused items
• Review and cancel one unnecessary subscription
• Track every expense for 30 days

However, avoid turning budgeting into punishment. A plan that leaves no room for enjoyment is difficult to maintain.

Instead, include a reasonable amount for guilt-free spending. Once that money has been budgeted, you can enjoy it without worrying that you have disrupted your savings goals.

Closing Thoughts

Everyone has different priorities, incomes and financial commitments.

Therefore, there is no single answer to how much percentage of your salary should be saved. Saving 20% of take-home pay is a useful starting benchmark, but the right figure depends on your circumstances.

If 20% is currently unrealistic, start lower. More importantly, save consistently and work towards increasing the amount when your situation improves.

At the same time, aim to build an emergency fund covering three to six months of expenses. This buffer can help you handle unexpected costs without immediately relying on credit.

Ultimately, learning how to budget your salary is not about copying someone else’s savings rate. It is about creating a system that helps you pay your bills, enjoy your present life and make steady progress towards your future goals.

Start with the amount you can manage today. Then, review your salary budget planning whenever your income, expenses or priorities change.