Money is one of the important things that everyone needs in life at such times. So, saving money is one of the best ways of dealing with hard times and meeting expenses. It comes to our rescue at times of need. Like these, you have many reasons to save money to enjoy a quality life. So, know how to save money in India from salary which is helpful for managing your finances.
Adopting such habits will lead to a stress-free life as you can enjoy life without financial stress. You won’t have to worry about the uncertainties of life when you have the money to deal with it. You will always be ready to tackle financial stress when you have savings in your hand.
Let us look at why saving is important and how it helps you along with the tips in this article.
Also Read: Why Life Insurance is Important in India
Why Saving Money is Important?
Save money while you have. Saving money gives you an option of ease at the time when you are in need. Here are some of the reasons why you should pay attention to saving money from your Salary.
- Offers peace of Mind: When you know that you have money for uncertain times then it offers you peace of mind. You can live to stress-free life when you have the money to use in need time.
- Provides a better future: We all have many goals in life. It can be buying a car to buying a present for your special one. Saving money can help you in achieving those goals.
- Provides security in unfortunate situations: Money in uncertain times saves a life. Whenever we have a family or friend in need of health emergencies. You can always rely on savings to tackle those life-threatening situations. You can always be a great help when such time comes.
10 Tips on How to Save Money in India from Salary
Saving money is not a very difficult process, making it a habit will help you to reach your goals easily. While getting a salary each month you can keep some amount aside and save it for future emergencies. But sometimes we spend that money unknowingly so it is very important to keep that money secure in such a way you don’t use it by mistake anytime.
1. Plan Your Budget
Planning a budget is a very ideal way of setting money and controlling expenses. When you receive your salary, make a monthly budget by dividing your expenses into categories and fixing them. It will help you to know how much money you need to spend. Sticking to the expense helps in avoiding overspending. Thus, you can save money every month from your salary.
Follow straightforward budgeting rules to improve your budgeting: Spend 50% of your income on necessities like housing, 30% on desires like traveling, entertainment, and shopping, and 20% of your income on savings.
2. Lower Your Expense
Sometimes we overspend on things that are not essential to us. Cutting out such expenses from life will help you to save money in your pocket. Reduce the habit of spending money on unworthy things like outside food orders, entertainment expenses, online shopping, etc. You can also lower your expenses by avoiding buying expensive kinds of stuff, going salon, using public transportation, cutting on drinks and parties, etc.
3. Avoid Getting into Debt
Debt is just one of those things that happen without your knowing or you might even feel like you can’t control it. However, it is possible to avoid debt. Debt is like a financial net where people get stuck and have difficulties getting out. Avoid getting into the trap of Debt. Take debt only in case of urgent emergencies. You will need to get a better understanding of spending money wisely. Don’t add debt while you are already in one. This will help you to save money from paying extra money on interest.
4. Pay EMIs on Time
Paying EMIs on time will save you from spending extra money as a late fee. It will help in saving you a lot of money from your salary. Delayed payments will lead to paying a lot of extra money which you could have used somewhere else on important stuff. Always pay your credit card amount in full and it will help in boosting your income.
Keeping up with your EMI payments demonstrates your creditworthiness, increasing your chances of getting a loan with a competitive interest rate in the future. Before approving your application for new loans, the bank typically takes into account your good credit history. If you have a decent financial record, you might be qualified for greater credit. So, automating repayments of EMIs from the bank account will help you to save yourself from delayed payments.
5. Save Your Bonus Amount
Getting a bonus in your salary doesn’t mean you have to spend more. It is always good to save your money when you get extra money in your salary. Saving that money will come in help in times of emergencies.
6. Buy in Bulk
Buying your regular needs in bulk will get you a lot of offers. It not only saves money but also helps you to buy things in larger quantities. It will help you to avoid visiting stores daily and save a lot of money. You can save this money for future needs by buying all the regular needs in huge quantities.
7. Use Public Transport
Using public transport is a very smart way of saving money. It’s cheaper and always helps in saving money from spending on fuel for personal vehicles. Avail public transport whenever possible.
8. Party at Your Place
Going out on weekends or occasions can cost you a lot. Avoid spending that money by partying at your place. It will save a lot of money on food, transport, and drinks.
9. Keep Track of Expenses
Keeping track of your expenses is a better way of knowing where and how much you are spending your salary amount. In this way, you will be able to know your important expenses and cut off unnecessary expenses next time while planning a budget. All of your bills, receipts, payments, bank statements, and other records of your income and expenses for at least a month should be consolidated into a single place. Placing them in one place will give you an idea of your expenses thus, it will help in keeping track of expenses.
10. Start Investing
Investment is a super ideal way of saving money from your Salary. Investing helps to save money and also you can avail its benefits of interest amount. Talk to experts who will help you to select the best investment plans according to your budget. You will save a lot of money through investing and lead which to secure you from uncertainty and emergencies.
As we have read above how you can save money from your Salary and Why it’s important. So, follow the tips and save your money for emergencies. Saving money will only help you to get out of the tough crisis and will help you to lead a stressful life. Set 20% of your salary for Savings. Such goals will be of great help in emergencies. Make Savings a habit and it will return you its benefits in time of need. Have a great time and always find something new when you’re looking for ways to save your money.
How to Save Money in India from Salary – FAQ
Why should I save money?
Ans. Setting Some amount of money from your salary to save helps in the future in a time of need. It provides you peace of mind at times of emergencies. You can lead a stress-free life when you know you have savings in your account. It will help you to overcome a financial crisis.
How can I invest my money in savings?
Ans. Investment is an ideal way of growing money by paying some amount from salary. You can choose from many investment options in the financial market and choose what is suitable for you. You can also talk to experts to choose investment plans. Money on Investment will pay you back with interest and help you in times of need.
How can I Lower my expenses to save Money from my Salary?
Ans. Cutting on unnecessary expenses will help you to save a lot of money. You can lower your expenses by avoiding buying expensive kinds of stuff, going salon, using public transportation, cutting on drinks and parties, etc.
How much money should I save from my Salary?
Ans. Save 20% of your salary by keeping it aside is a good way to save from your salary. Plan a budget and according to it use 50% for your monthly needs like rent, electricity bill, medicine, transportation, etc. Use 30% for your expenses on vacations, luxury purchases, salons, and parties. The rest of the 20% you can keep aside for savings.
Why should I keep track of expenses?
Ans. Keeping track of your expenses is very helpful in knowing where and how much you are spending. It will help you in dividing expenses and planning a proper budget. This will help you in cutting off unnecessary expenses as well.