The picture depicts 7 ways to save money in 2021. It has gold coins and words in black and mustard

Although the year has started out weirdly, I still find that saving money is crucial. One of my biggest goals this year is to save a lot. I am not too disciplined with money, and mostly spend it as soon as I make it. While trying to come up with the best way to save, I came up with this list. These 7 ways to save money in 2021 are meant to be a guide to those that also want to save this year.

What are you spending on most?

When I decided to make saving as a goal this year, I knew I had to have a look at myself. I needed to work out on what I was spending money most on. Doing this made me realise that I spend a lot of things I do not need much. Let me give you a little of a break down.

This is the list of things that I was buying most:

  • Airtime / Internet
  • Alcohol
  • Eating out
  • Junk food

And many more “stuff” that I do not need. This has made me understand that I am an impulse buyer. My excitement to spend is way huge than that to save. Something that a lot of us suffer from.

Now that you have decided to start saving, self-reflect and understand where your money is going.

What will you be using for budgeting?

Another crucial part in making sure that you’re truly saving would be to have a working budget. You need to plan on your income. One of the quotes I have on my vision board says

Do not Save what is left after Spending. Spend what is left after Saving!

Saving money is hard. Very hard. More especially in these times, money is tight. But having a working budget makes things better. When you budget every cent that comes your way, you give it a job. However, it is important, like the quote says, to remove your potion of savings before you start making budgets.

Make sure to stick to your budget, fight those impulse buying demons. At the same time, it is just as important to have a money saving worksheet to make sure you are on track.

7 ways to save money in 2021

1. Fixed Deposit Account

While most banks have savings accounts to help those that want to save. I find fixed deposit accounts to be more the saving trick than the other. This is because, with FDs, they have a locked timeline before you can start withdrawing. On the other hand, there is no such restriction with savings accounts which really does not do well with money discipline.

2. Invest in a Money Market Mutual Fund

Money markets are perfect for saving money because they offer a higher interest return. These are perfect for those that want to secure their monies while pending an investment option. Just like FDs, most MMMFs will have a lock on time for when you are allowed to withdraw money. In Malawi, best places to invest is the Old Mutual Money Market Fund.

3. Treasury Bills

Yes, individuals can buy treasury bills too. Another great way to save money and make money without any default risk. In Malawi, you can buy a treasury bill starting from K100,000. Advertisements are done in the newspapers, and buying them can be done with banks licensed to sell them. Also, they have interests attached, so you are able to grow your savings.


A lot of African countries have running SACCOs. These are Savings And Credit Co-Operatives. The savings are mostly divided into Savings and Shares. The bigger the shares, the more credit they allow you to take. I joined a SACCO in 2018, and since, I have never taken any credit. Because I decided that I wanted it for pure savings. And it has been going great.

5. Village Banks

Although these are mostly frowned on by people, they are great for savings. They are not any different from SACCOs, just way riskier. Just like SACCOs, you buy shares, and the bigger the amount of shares, the money you can borrow. The interest is shared within the group. However, before joining, you need to make sure that everyone in the group is trustworthy. Some have had their money stolen from group members. So, do a proper vetting.

6. Insurance Policies

Buying insurance policies aides saving money. Life insurances, for example, are a long term way of saving. Your money grows with the insurance premiums, which gives a great return when it is time to cash out.

7. Saving Box

I put this as last, because this should be a last resort. Having a saving box should only be to help you have discipline with money. These do not offer any returns at all. Your money does not grow, because it stuck in one place. But it helps you to not overspend on any petty things.

Like I said, saving is a hard task. But, taking into consideration these 7 ways should be able to guide you.

How are you saving money this year? Share your ideas in the comment section below.

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23 thoughts on “7 Ways to Save Money in 2021

  1. Lovely post. I too find the fixed deposit account to work better than the other savings account (unless ofcourse you are king/queen of self-control

  2. Do not Save what is left after Spending. Spend what is left after Saving!– This spoke to my soul because it’s usually the opposite. Beautiful piece🖤🖤

  3. I was so excited to see this article. I have a hard time saving money as well. You don’t really get taught all this stuff. Which leads to tons of research. Your article lays it out very nicely yet descriptive.

  4. These were some really helpful tips. Thanks for sharing your knowledge. One way I help myself to save is to have a portion of my money automatically transferred to my savings account.

  5. These were some really helpful tips. Thanks for sharing your knowledge. One way I help myself to save is to have a portion of my money automatically transferred to my savings account. It helps me to not think about the money that I’m not spending lol

  6. Will definitely be saving this for future use as well!! This year my goal is to save more, spend less and invest as well!

  7. Lovely article as always Louisa!
    You can also start saving with Mpamda Fesa – from my understanding its an MMMF collab w/ Old Mutual. I like it because it is flexible and not too intimidating, straight from my Mpamba to my Fesa Account.

    Quick question though, how do you join a SACCO?

    1. The organisation I work for is affiliated with a SACCO, which made it easy for me to join. However, I will try my best to find a proper response to this and make a blog post on it

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