A Practical Guide to Smart Saving in Saudi Arabia
Saving money might not sound exciting, but it’s one of the most powerful things you can do for your financial peace of mind. It reduces stress, builds stability, and helps you move closer to your dreams — whether it’s a new home, retirement, or just a more comfortable life.
Why Save in the First Place?
Think of saving as your financial safety net. If something unexpected happens — job loss, medical emergency, car trouble — your savings can keep you afloat without falling into debt.
Beyond emergencies, saving helps you build a future: owning a home, paying for education, retiring comfortably, or traveling without guilt.
How Much Should You Save?
There’s no perfect number for everyone, but a solid starting point is saving 20% of your monthly income. If that feels like too much, start with whatever you can. Even 5% is better than nothing — consistency is what matters.
What Are You Saving For?
Before you decide how much to save, ask yourself why you’re saving. Here are common goals:
💰 Retirement
Start early to live comfortably later. A good target is to save enough to cover at least 20 years of post-retirement expenses. The earlier you start, the easier it is.
🛟 Emergency Fund
Aim to set aside 3 to 6 months’ worth of living expenses. This buffer can save you from a crisis becoming a catastrophe.
🏠 Big Purchases
House, car, wedding, education — these goals require long-term planning. Saving regularly makes them achievable without financial stress.
📈 Investment
Saving is great, but investing can grow your money over time. Consider low-risk portfolios or long-term investment products from licensed institutions.
How to Divide Your Income:
The 50/30/20 Rule
This simple rule helps balance your needs and goals:
- 50% for essentials: rent, food, bills, fuel
- 30% for wants: outings, shopping, entertainment
- 20% for saving and investing
Break down the 20% like this:
- 10–15% for retirement
- The rest for emergencies or short-term goals
Where Should You Keep Your Savings?
Different goals call for different accounts:
- Current Account: For daily spending — easily accessible but doesn’t grow your money.
- Savings Account: Ideal for emergencies or short-term goals like travel or rent.
- Long-Term Savings or Investment Plans: Many banks and financial institutions in Saudi Arabia offer monthly saving or investment programs to help you build wealth over time.
- Investment Portfolios: If you have some knowledge (or a trusted advisor), consider putting part of your savings into low-risk portfolios.
- Education Funds: If you have children, you can start putting aside money for their future tuition.
How to Save from Your Salary
- Calculate your net monthly income (after taxes and deductions).
- Choose a fixed amount or percentage to save every month.
- Set up automatic transfers from your current account to your savings or investment account.
- Treat savings like a non-negotiable bill — it gets paid first.
What If I Can’t Save Much?
That’s totally okay. Start small. Even saving SAR 25 a month builds a habit — and habits compound.
Try to:
- Cut back on non-essential spending
- Track where your money goes
- Look for small side income opportunities (freelancing, selling unused items, etc.)
📌 Action Toolkit
Here’s a simple checklist to help you get started:
| Step | What to Do |
| Set Your Goals | Write down 3 clear goals (retirement, emergency, vacation, etc.) |
| Apply the 50/30/20 Rule | Divide your income: 50% needs, 30% wants, 20% savings |
| Automate Your Savings | Set a recurring monthly transfer to a savings or investment account |
| Track Weekly Spending | Use a spreadsheet or app to see where your money goes and where to save |
