In our uncertain world, saving patiently and regularly is more crucial than ever before. While the typical Indian middle-class individual saves some ₹10,000 every month, specialists advise keeping at least 30% of what you bring home. For a person making ₹1,00,000 per month, that would translate to saving ₹30,000 every month. Using discipline and good judgment, you can shoot even higher—up to 50% of your take-home pay. Here are ten easy steps to achieve this.
1) Buy Health Insurance
- Why? A yearly premium (say ₹12,000) can protect you from surprise hospital bills that run into lakhs.
- Example: If you currently spend ₹1,500 per month on healthcare, and the ₹1,000 monthly premium covers you and your spouse, you effectively save ₹500 every month that would otherwise go to unexpected medical costs.
2) Choose Cost-Effective Transportation
- Public Transport: Leave the car at home and ride the bus or train. Even saving just ₹10 per day adds up to over ₹3,000 a year.
- Carpooling: Share rides or use ride-share apps to split fuel and parking costs.
3) Optimize Your Phone Plan
- Postpaid vs. Prepaid:
- If you have Wi-Fi at home and work, pick a lower-data postpaid plan (e.g., Airtel’s ₹499 plan with 75 GB and Amazon Prime, or Jio’s ₹599 for 100 GB and Prime).
- If you don’t need constant data, switch to a prepaid plan and recharge only when needed.
- Employer Reimbursements: Always claim any phone bills your company will cover.
4) Shop Online Smartly
- Price Compare: Don’t just stick to one website; check smaller platforms for deals.
- Coupons & Cashbacks: Use coupon sites, wallets (Paytm, MobiKwik), or UPI offers to get extra discounts.
- Free Shipping: Wait to buy until you qualify for free shipping.
- Avoid Impulse Buys: Say no to “buy 2, get 1 free” unless you truly need all three items.
5) Prudent Grocery Shopping
- Make a List: Sticking to a list helps you resist end-of-aisle temptations.
- Buy in Bulk: Stock up on monthly essentials in one go to lower per-unit costs.
- Supermarket Cards: Sign up for loyalty programs to earn points (1–10%) you can redeem later.
6) Cut Entertainment Costs
- Cancel Unused Memberships: If you visit the gym or club less than twice a week, drop the membership and work out at home.
- Ditch Cable: Switch to streaming services you actually use—Netflix, Hotstar, Prime—then cancel cable.
- Trim Subscriptions: Review magazine, newspaper, or app subscriptions and cancel those you don’t use.
7) Lower Your Energy Bills
- LED or CFL Bulbs: Replacing a 60 W bulb with a 14 W LED saves about ₹50 per bulb each month.
- Unplug Devices: Chargers, appliances, and gadgets still draw power when idle. Unplug them to save small amounts that add up.
8) Save on Food Costs
- Home-Packed Lunch: Packing lunch can save around ₹1,000 a month—₹12,000 a year.
- Limit Dining Out: Set a strict budget (e.g., two restaurant meals per month) and stick to it.
9) Make Homemade Gifts
- DIY Cards & Presents: Instead of spending ₹500 on store-bought gifts, get creative with handmade items. The thought often means more than the price tag.
10) Quit Costly Habits
- Smoking & Excess Drinking: Cutting out or reducing these habits not only improves health but can free up thousands each month.
Putting It All Together
Suppose your monthly salary is ₹50,000, and your current expenses total ₹33,700. That leaves you with savings of ₹16,300 (about 33%). By applying the tips above, you could trim expenses down to around ₹15,000, which lets you save ₹35,000—a full 70% of your income! Even if you achieve half of that improvement, you’ll still hit a 50% savings rate, giving you ₹25,000 each month to build an emergency fund, invest, or pursue long-term goals.
| Metric | Before Tips | After Tips |
|---|---|---|
| Monthly Salary | ₹50,000 | ₹50,000 |
| Total Monthly Expenses | ₹33,700 | ₹15,000 |
| Monthly Savings | ₹16,300 | ₹35,000 |
| Savings Rate (% of Income) | 33% | 70% |
Conclusion
Saving money isn’t about depriving yourself—it’s about making wiser, more thoughtful decisions. Begin with tiny steps, consider doing just one or two tips at first, and create the habit of setting aside money. Gradually, these little adjustments will total up to a substantial safety net, enabling you to ride out life’s unpredictabilities with confidence.
Discipline and self-regulation are the cornerstones of a successful investment plan. Begin today, and your future self will thank you.
