Smart ways to grow savings quickly: Practical strategies and real- life examples

Saving is a fundamental pillar for achieving financial stability and preparing for the future. However, it is not just about setting money aside—it requires financial awareness and smart strategies to reach goals as quickly as possible.

In this article, we explore a set of smart ways that help Saudi youth and families grow their savings rapidly, supported by real examples and reliable sources, highlighting local experiences and practical applications that can be implemented in real life.

Deep Understanding of Saving and Its Goals

Saving is not limited to just reducing spending; it includes tight financial planning and converting surplus money into investments or accounts with returns that contribute to building a secure financial future.

Examples of saving goals:

• Buying a house or car within 5 years.
• Starting a small business within 2 years.
• Building an emergency fund equal to 6 months of essential expenses.
• Covering costs of higher education or professional fellowship.

According to a study by the Saudi Arabian Monetary Authority (SAMA), 60% of Saudis lack clear saving plans, emphasizing the importance of raising awareness about smart saving methods and the role of educational and media institutions in building sustainable financial culture.

Setting a realistic and ongoing budget

The fundamental step for any saving plan is controlling expenses through a precise and ongoing budget that helps individuals track their spending and set financial priorities.

Steps to create a smart budget:

• Determine fixed monthly income.

• Classify expenses into fixed (rent, installments) and variable (restaurants, entertainment).

• Allocate a specific percentage for saving (at least 20%).
• Regularly review and update the budget according to financial changes.

Real example: Nora, a government employee, allocated 25% of her income to savings after using the “Mahfazti” app to track daily expenses. Within a year, she saved over 30,000 SAR, which she used to start a simple e-commerce business, boosting her financial independence and investment awareness.

The 50/30/20 rule for saving

Created by financial expert Elizabeth Warren, it is one of the most flexible and easy-to-apply methods:

• 50% of income → basic needs.
• 30% → wants and luxuries.
• 20% → saving and investment.

Example: If your monthly income is 10,000 SAR:

• 5,000 SAR for basic expenses (housing, food).
• 3,000 SAR for luxuries.
• 2,000 SAR for saving.

These percentages can be adjusted according to lifestyle and income, but the key factor is commitment to a fixed saving percentage regardless of the amount.

Utilizing digital and financial tools

Several apps and websites in Saudi Arabia today help with smart saving and managing personal finances in a simplified technological way.

Useful apps:

• "Lendo": for crowdfunding investments.
• "Murabaha": to set saving goals and track progress.
• STC Pay / Apple Pay: enable automatic expense tracking and link spending to automatic saving accounts.

Real case: Salman, a young man from Dammam, used the STC Pay app to link his daily spending card to a savings account, where 5% of every purchase is automatically transferred to a special savings account. He saved over 15,000 SAR in 18 months without feeling financial pressure.

Automated Saving Techniques

Automatic saving is one of the strongest strategies to set aside money without feeling the loss, as it works behind the scenes without direct intervention.

How to implement automated saving?

• Open a separate savings account.
• Activate automatic transfer service from the current account to the savings account monthly.

• Choose a fixed date for transfer (preferably right after receiving salary).

Actual example: Abdulrahman from Jeddah deducts 1,000 SAR monthly from his account automatically after salary receipt. Within two years, he accumulated more than 24,000 SAR effortlessly and used part of it for a simple investment in real estate funds.

Investing surplus money with compound returns

Smart saving doesn’t just mean accumulating money but deploying it in low-risk investment tools to increase returns over time, thanks to compound interest that allows money to grow exponentially.

Suitable investment options for new savers:

• Bank investment funds (low to medium risk).
• Leading Saudi stocks (Al Rajhi, Aramco, SABIC).
• Government sukuk: state-backed with fixed returns.
• Electronic portfolios linked to Saudi banks.

Numeric example: If you save 1,000 SAR monthly and invest in a fund with an 8% annual return, in 10 years you will have over 180,000 SAR (not just 120,000 SAR), thanks to compound interest and profit accumulation.

Reducing unnecessary expenses without affecting quality of life

It’s not about deprivation but reordering spending priorities and controlling non-essential expenses.

Smart ways to cut expenses:

• Replace daily coffee from cafes (15 SAR × 30 days = 450 SAR) by making it at home.

• Cancel unused subscriptions (Netflix, sports channels).
• Benefit from bank offers and rewards.
• Shop during discounts or using electronic coupons.

Case study: Rahaf, a university student, saved over 5,000 SAR during one semester by preparing meals at home and managing her expenses using Google Sheets. This helped her allocate monthly funds for an educational tripabroad.

Adopting short-term saving challenges a fun and motivating way for group or individual saving that increases commitment and motivation.

Examples:

• 52-week challenge: save a small amount starting at 10 SAR and increasing weekly.

• "No Spend" challenge: abstain from unnecessary purchases for a month.

• "Double Save" challenge: save the equivalent of every unnecessary expense.

These challenges can be shared on social media to create a sense of community and positive competition.

A Money Crashers study showed that people who follow short-term saving challenges achieve 30% better results than those who set long-term goals without breakdowns.

Teaching saving culture within the family it is important that the family environment encourages saving, especially for children and teenagers, to enhance financial responsibility from an early age.

Practical ideas:

• Reward young savers.
• Discuss family expenses transparently.
• Involve children in preparing the family budget.

Leveraging loyalty programs and bank offers many Saudi banks offer reward programs that encourage saving and smart spending and enhance the culture of thoughtful expenditure.

Examples:

• Al Rajhi Rewards Program: points on spending that can be redeemed for products or services.

• Prepaid credit cards: help control expenses.
• "Kasb" program from Riyadh Bank: earn points on transfers and payments.

• Interest-free financing or seasonal discount offers.

Small Steps Lead to Big Results

growing savings quickly does not mean lowering quality of life or deprivation. It is a conscious process that begins with understanding money, organizing spending, and smartly using available tools. With perseverance and commitment, anyone—regardless of income—can achieve their financial goals and live with financial independence and well-being.

“Saving isn’t about how much you earn; it’s about how much you keep and grow.” – Robert Kiyosaki

References:

1. Saudi Arabian Monetary Authority (SAMA) – sama.gov.sa
2. Saudi Central Bank – Personal Finance and Saving Reports
3. Mal Economic Website – Investment and Saving Reports
4. Financial studies from MoneyCrashers and Investopedia
5. Real experiences published on “Citizen Account” platform and Saudi Financial Twitter
6. Saudi Financial Awareness Platform – mawareness.sa
7. "Financial Awareness" Program by Saudi Ministry of Finance