Can I Save Differently to a Typical Person

Can I Save Differently to a Typical Person? Exploring the answer to this question.

When it comes to saving money, most people follow the same advice: set aside 20% of your income, open a high-interest savings account, and avoid unnecessary spending. While these principles are solid, they may not work equally well for everyone. If you’ve ever asked yourself, “Can I save differently to a typical person?” - the answer is a resounding yes.

In this blog post, we’ll explore why saving differently can be a smarter approach, how your personal circumstances should shape your saving strategy, and practical tips to build a savings system tailored to you, not the average person.

Can I Save Differently to a Typical Person

Why Saving Like Everyone Else May Not Work

Most financial advice is based on broad averages and general assumptions. These recommendations don’t always account for variables like your income level, financial goals, career path, living costs, or even your risk tolerance. For example, saving 20% might be ideal for someone earning a six-figure salary, but it may be unrealistic for a freelancer with irregular income or a new graduate in a high-cost city.

Here are a few reasons why saving like the “typical person” may not be the best fit for you:

• Different life stages: A 22-year-old just entering the workforce will have very different priorities compared to a 45-year-old saving for their children’s college education.
• Unique goals: While many people save for retirement, you might be more focused on travel, starting a business, or buying property abroad.
• Income variability: Freelancers, contractors, or small business owners often deal with inconsistent income, requiring a more flexible savings strategy.

What Does It Mean to Save Differently?

To “save differently” means designing a savings plan around your personal financial reality rather than blindly following conventional wisdom. It’s about prioritizing your goals, maximizing efficiency, and using tools and tactics that suit your lifestyle.

1. Align Your Savings With Your Goals

Start by asking yourself: What am I saving for?

Whether it’s a down payment on a home, a sabbatical, or early retirement, your goals should define how and how much you save. A typical person might funnel everything into a general savings account, but you could create goal-based savings buckets—separate accounts for short-term and long-term goals.

2. Adjust Your Savings Rate Dynamically

Instead of sticking to a rigid percentage, save based on your monthly cash flow. Some months you may save 10%, other times you might hit 40% after a bonus or a low-expense period. This is particularly useful for entrepreneurs and gig workers.

3. Automate, But Stay Agile

Automation is a common savings tip—and for good reason. But you can do it differently by automating transfers into different types of accounts depending on your financial rhythm. For example:

• Use a sweep rule: Move all leftover funds at the end of the month into savings.
• Automatically invest spare change using apps like Acorns or Revolut.
• Direct your freelance payments into a separate business account, then distribute it into taxes, business reinvestment, and savings.

4. Use Tools That Fit Your Lifestyle

The typical saver might use a high-street bank’s savings account, but you might benefit more from:

• Digital banks with goal tracking features.
• Investment platforms for higher long-term returns.
• Envelope budgeting apps like YNAB or Goodbudget.
• Cash stuffing, a low-tech but psychologically effective method of budgeting and saving.

Mindset Shift: From Deprivation to Design

Saving doesn’t have to feel like punishment. Instead of focusing on what you’re giving up, focus on what you’re building. Design your savings plan in a way that reflects your values and energizes you.

• Are you a visual person? Use charts and trackers to watch your progress.
• Do you need flexibility? Build a buffer that lets you skip a savings transfer during tight months without guilt.
• Prefer experiences over things? Allocate a lifestyle fund alongside your emergency fund to maintain joy in your financial journey.

When Saving Differently Makes the Biggest Impact

Here are some scenarios where saving differently from the norm can offer a clear advantage:

1. You have debt: Aggressive saving may not be wise if you’re juggling high-interest debt. A blended approach - paying down debt while saving modestly - is often more effective.
2. You live in a high-cost area: Typical savings goals might not reflect the realities of your rent, transportation, or childcare expenses.
3. You’re planning a major life change: Whether it's career switching, moving countries, or starting a family, a typical savings route may not prepare you adequately for transition periods.

Final Thoughts: Make Your Money Serve You

To save differently is not to rebel against financial wisdom—it’s to make sure your money habits serve your individual goals, not the statistical average. Personal finance is just that: personal.

If you're asking, “Can I save differently to a typical person?”, you’re already ahead of the curve. You’re thinking critically, questioning defaults, and moving towards a financial strategy that’s built for you.

By optimizing your approach, you empower yourself not only to save more effectively but to live more freely. And that’s something the typical plan can’t always promise.