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7 Tips On How To Save Money From Salary And Where To Allocate It

Ever wondered how to save money from salary?

If you are employed and work for someone else, this blog post or video is exactly for you.

It means you receive a monthly or biweekly paycheck. 

But the core question is…

How do you pay attention to the money you receive in your bank account from your employer?

Do you have control over it? 

Or you plainly leave it, withdraw it from time to time, and you don’t pay attention to it. 

But that’s the wrong money skill approach. 

Listen, you are part of the Pat VC community. 

And the primary backbone is to recondition your mindset from scarcity and climb up the wealth pyramid toward financial independence, prosperity, and holistic wealth.

It means growing your financial literacy and managing personal finances is a must.

For that reason,

Let’s talk about 7 essential tips on how to save money from salary and where to allocate it wisely.

7. How To Save Money From Salary – Pension Fund

How To Save Money From Salary - Pension Fund

This step is mandatory in every civilized country. 

Because your employer automatically transfers a certain percentage of your salary to a pension or retirement fund. 

For example, I live in Hong Kong.

How To Save Money From Salary - Hong Kong

So an employer allocates 5% of your relevant income as you can see in the table.

MPF account Hong Kong - the current minimum and maximum relevant income levels

It simply means, 

if your monthly income is between HK$7,100 and HK$30,000, the employer’s mandatory contribution is your relevant income x 5%.  

Also, your employee’s mandatory contribution is your relevant income x 5%. 

And anything above HK$30,000 is a fixed amount of HK$1,500 for you and your employer.

In short, you can’t touch this money until the time is right.

One advantage is that it is tax-deductible.

Additionally, you can increase your contribution to the pension fund. 

However, there are much better ways on how to save money from salary and where to allocate it…

6. Current Or Checking Account

Pat VC - Current Or Checking Account Bank Account

I assume your employer transfers your salary to your bank account.

Or some employees prefer to be paid by cryptocurrency such as Bitcoin.

Either way, in most cases, you get paid to your bank account. 

It means you have a checking account with a local or virtual bank, which is a famous trend now.

So this money should stay in your checking account just for a while. 

The reason is, it does not grow. 

“There is no interest in checking accounts, and your money is suffering and dying.”

In the best-case scenario, you want to redistribute automatically most of this money to another location, which we’ll talk about later.

Now, what’s the point here?

I assume you pay rent or mortgage from your checking account.

So keep only a small amount between 5 – 10%. 

What I mean by this small amount is using it for your essential necessities such as food, clothing, and utilities…

Does it make sense?

Another tip on how to save money from salary is…

5. Pay Off Your Debt – The Debt Avalanche & Snowball Method

Pat VC - Pay Off Your Debt - The Debt Avalanche And Snowball Method

As you may have already known, the compounding interest is a powerful investment tool. 

But it may crash you when it applies to debt.

In short,

if you don’t pay attention to your debt repayment discipline and do not strictly follow this financial routine, you can get into really serious financial trouble. 

In addition to that, your credit score will be poor. 

And you won’t be entitled to apply for any type of loan, mortgage, or investment leverage if you don’t control your debt.

So if you have credit cards or any other loans, apply preferably the debt avalanche method strategy

It means,

  • Start paying down the debt with the highest interest rate and continue down the road to the lowest rate.
  • Or you can apply the debt snowball method strategy where you pay off the debt in order of smallest to largest balance. 

Listen, take this step seriously. 

Because it’s about self-discipline that will open the door to your financial literacy and distinguish you from the masses.

After that, the following tip on how to save money from salary will keep you calm…

4. Control Your Emergency Fund or Account

How To Save Money From Salary - Control Your Emergency Fund or Account


“Do not treat your emergency account as your savings account. That should not be meant in this way.”

Certainly, there will be days you will need your emergency fund. 

But also there will be days you won’t touch it for so long. 

However, if you as an employee have just one flow of income…

“Focus on creating an emergency account for at least 3 – 6 months.”

Because some unexpected situations might happen.

And you will have enough time to sort out your thoughts and find another job if you want to make money as an employee.

So once you receive your salary, build up this 3-6 month emergency account. 

Remember, this money is liquid quickly, so control to have your emergency account all the time.

In the following tip on how to save money from salary, the money will make you wiser and will work for you…

3. Allocate Money In Yourself And Your Side Hustles

How To Save Money From Salary - Allocate Money In Yourself And Your Side Hustles


“If you don’t want to stay average and want to climb up the wealth pyramid toward financial independence, prosperity, and wealth, you need to think all the time about how to increase your income.”

But you don’t need to immediately become an entrepreneur.

Firstly, this step is not about savings. 

It’s about heavily investing in yourself by purchasing:

  • digital courses,
  • attending seminars,
  • joining mastermind groups,
  • and free or paid mentorship.

So be patient, take your time and perform diligently at your full-time job. 

But besides that, develop your elite-income skills and entrepreneurial skills. 

It will pay off eventually. 

On the other hand, if you already run some small side hustle, consulting, or partnership, allocate a specific amount of your salary into this vehicle. 

I am in this transformational process, and I am pumped to share it with you.

Also, a quick tip is to explore what intrapreneurship is

Because you can boost your personal and professional development within the organization where you work.

Now, would you like to know how to save money from salary and let the money work for you?

If yes, follow this tip…

2. Automate Savings To “Opportunity” Bank Account

Pat VC - Automate Savings To Opportunity Bank Account

What I mean by that is, you allocate a specific percentage of your salary to the secret opportunity account.

Notice, I don’t use the word savings account. 

Because I learned recently from my mentor to change the language of money.  

Moreover, when you hear and use a savings account, it triggers in your subconscious mind a limiting belief that you need to save and only save. 

But that’s not the purpose of saving money on a secret opportunity account. 

The core principle here is…

Regularly allocate a specific amount from your salary to the secret opportunity account, which will later be used for larger investments.

So you have to be poised to pull the trigger to buy paper assets or real estate when there’s blood in the streets. 

And it also applies to your side hustle to double down on what works. 

Or maybe outsource your work to someone else to scale your online business.

So again, I prefer to call it a secret opportunity account because of the psychological effect. 

And the last tip on how to save money from salary is…

1. Smaller & Regular Dollar-Cost Averaging Investing

Pat VC - Smaller And Regular Dollar-Cost Averaging Investing

I left this tip as the last one. 

Because many people leap the previous tips and invest a larger chunk of their salary into several investment vehicles, they do not understand. 

And then they end up with no emergency fund, no savings, or their debt is accumulating like a snowball. 

But listen,

The key point of the dollar-cost averaging strategy is to invest a smaller amount of your salary regularly.

Notice, I say regularly, because you need to build self-discipline.

But you must have fundamental investment skills. 

For example:

  • Allocate a specific percentage of your salary to your brokerage account. 
  • It could also be peer-to-peer lending platforms.
  • Or even buying cryptocurrency every month.

Because when you buy regularly no matter what the market does, in the long term it will pay off. 

Of course, it depends if you want to be a conservative investor or take risks in growing industries. 

But to eliminate your risk tolerance, you can even split your total regular amount within several investment vehicles.

Remember, just automate it. 

Oversee it once a month and play the money game in the long run.

It will pay off and you might reap a windfall after 20+ years.

Are You Going To Rethink How To Save Money From Salary?

To conclude this blog post, 

You as an employee, it is essential to learn money skills and follow these 7 tips.

The reason is, it eliminates your financial stress, expands your elite-income skills and directs you from the middle class to the upper class. 

After all, how high you want to climb is only up to you.

But the goal of the Pat VC’s personal development is to help you move to prosperity and wealth.  

So whatever path you want to pursue, understand this.

“If you are an income earner in your 20’s, 30’s, 40’s, 50’s, or beyond 65 you must get your personal finances in order to reinforce a financial area within holistic wealth.”

Do you agree?

Now, I’d like to hear from you. 

What are your tips to allocate money from your salary? 

Maybe you feel stuck to find the starting point to take control over your personal finances and move you toward prosperity.

If so, leave us a comment below. 

How To Save Money From Salary - Comment

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After all, I invite you to become a Doer. 

And I want you to build holistic wealth.

Thanks for reading or watching and I will see you next week. 

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About the Author

Vlastimil Cícha

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