Yes, this is what you do. Paying down debt (starting with the highest interest rates, like your credit card) is the best "savings" you can do. As stated, the secret is to stop or slow down the amount of digging you do. Then you can start piling up a little bit of proper savings. Good advice is to start a savings or money market account (once you're out of credit card debt) and get that up to about 1 to 2 months worth of income, as a safety buffer, which is kept for true emergencies. Not spending is the key to being able to save. Live within or below your means at all times. Don't binge or have benders. As for retirement savings, start by maxing out your 401k or equivalent once you're fully employed. By that I mean defer at least the amount that maximizes any company match, then as much as you can afford to up to the federal limit. Good luck.