How to save money on a small salary

Set aside first, not at the end

The old formula "savings = leftover spending" almost always yields zero, because spending naturally expands to fill whatever space is available. Flip the equation: as soon as your salary arrives, move your savings first, then live on the rest.

In personal finance, this is known as "pay yourself first": paying yourself before you pay retailers and bills.

Start small, but stay consistent

Rp 150,000 a month might sound small. But over a year it totals Rp 1,800,000, enough to cushion a small emergency without having to borrow. And someone saving Rp 150,000 consistently every month will surpass someone aiming for Rp 500,000 who quits in month three.

To make it feel real, give your savings a clear name and target: emergency fund, vehicle maintenance, or a gift for your parents. In the Catatku app, the Savings feature is built exactly for this: you set a target and watch your visual progress fill up.

Find your small leaks

With a modest salary, room for savings rarely comes from huge one-time cuts. It comes from fixing small, repeating leaks:

• Daily treats: Spending Rp 15,000 every workday adds up to roughly Rp 300,000 a month.
• Unused subscriptions: Review your recurring bill list and cancel anything you won't miss.
• Delivery & service fees: Fine once in a while, but every day it turns into a major expense of its own.

Leaks only become visible when spending is recorded. If you haven't started yet, begin with our guide on how to track daily expenses.

Increase gradually, and capture windfalls

Your savings percentage doesn't need to stay at 5% forever. Here are the two easiest moments to raise it:

1. When your salary increases: Before lifestyle inflation kicks in, move half the raise to your savings. You still enjoy greater breathing room, and your savings grow without feeling like a sacrifice.
2. When unexpected money arrives: Holiday allowances, bonuses, or proceeds from selling used goods aren't part of your regular monthly budget, so you won't miss them. Put aside at least half before it gets spent.

Love a challenge? Try saving Rp 10,000 every single day. It feels tiny, but over a full year it totals Rp 3,650,000, which equals nearly a full month's salary for many people.

First target: an emergency fund

Before saving for anything else, build an emergency fund worth 3 to 6 times your monthly expenses. This is the money you rely on when hardships occur so you don't need to take on debt.

Keep it in a separate account that is easy to access when needed but disconnected from daily shopping, and never touch it for sales or vacations.

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Questions about this

What percentage of salary is ideal to save?

The common benchmark is 20%, but the ideal number is whatever you can realistically repeat every month. Starting with a consistent 5% is far better than a 20% target that collapses in month two.

Should I save first or pay off debt first?

High-interest debt should be paid off first because its interest grows faster than your savings. However, still set aside a small emergency cushion (about one month of expenses) so an unexpected event doesn't force you into new debt.

Where should savings be kept?

Separate from your daily spending account. A second bank account or another secure instrument works fine. What matters is distance: money sharing the same screen as a checkout button will always lose.