Money Saving Tips: Rising inflation has made it difficult for people to manage their expenses. Hearing about a monthly salary of ₹25,000 often makes people think that saving is nearly impossible. Adding in rent, groceries, bills, travel, and minor personal expenses can leave them empty at the end of the month. However, if expenses are properly allocated, saving ₹4,000 to ₹6,000 per month is quite possible. This amount can reach ₹48,000 to ₹72,000 annually. This isn’t a magical effect, but rather a few planned habits that have helped millions of people strengthen their financial situation. If you’re also looking for ways to save on a low income, this detailed information is extremely useful.
Why is Proper Salary Allocation Important?
Budgeting is the most important step in managing money with a low income. The 60-20-20 formula is considered quite practical for low-income individuals. In this, 60 percent of the salary is used for essential expenses such as rent, food, electricity, water, and travel. Twenty percent is set aside for savings, and the remaining twenty percent for entertainment or small hobbies. The most important thing is to immediately deposit the savings into a separate account as soon as you receive your salary, as savings are difficult if expenses come first.
Read Here: OnePlus 15 vs OnePlus 15R- Which Flagship Killer Is Best For You?
Savings Increase by Controlling Expenses
No matter how much you earn, small expenses often derail your budget. Eating out, frequent online shopping, and unnecessary transportation expenses can add up to a significant monthly burden. By adopting home-cooked meals, travelling by public transport or bicycle, and carefully saving electricity, thousands of rupees can be saved each month. Using LED bulbs is beneficial for saving electricity. Finance tracking apps are also very helpful for keeping track of expenses.
Focus on Investments to Increase Savings
Just keeping money in the bank isn’t the way to grow it quickly. Regular investments can also help grow even small amounts over time. Starting a monthly SIP of Rs 4,000 can yield good returns in the long run. Safe options like PPF offer stable interest rates and tax benefits. New investors should start with small amounts, such as Rs 1,000 in a fixed deposit and Rs 3,000 in an SIP. It’s important to set aside three to six months’ worth of expenses as an emergency fund to avoid financial stress in case of any difficult situation.
Why it’s important to avoid common mistakes:
Many people spend their money on shopping, outings, or expensive EMIs as soon as they receive their salary. This prevents savings from forming, leading to difficulties in times of need. Excessive spending on festivals and weddings also often disrupts the budget. A small amount can be set aside each month to avoid this by creating a gift or festive fund. Family responsibilities are important, but prioritising your savings is equally important. Keeping rising inflation in mind, savings should be increased year after year.
Small savings can lead to significant wealth.
An annual savings of ₹48,000 to ₹72,000 may seem small at first, but consistent savings and investments over a long period of time have a significant impact. Through the effect of compounding, this amount can grow to lakhs and even crores over the years. For example, if a person invests ₹5,000 every month in a SIP (Systematic Investment Plan), they can accumulate a corpus of over ₹3 crore over time. NPS and other pension schemes also help secure their future for retirement planning.
Read Here: No More Wait at Toll Plazas, Know the Fastest Way to Recharge Your FASTag
Start your savings journey today.
There’s no better time than today to achieve financial stability. As soon as you receive your salary, put a certain portion directly into savings or investments. Keep a record of your expenses and curb unnecessary spending. Evaluate your budget and investments every few months to identify areas where improvements are needed. An income of ₹25,000 is not a hindrance; with financial discipline and consistency, it can prove to be the foundation of wealth. Small savings can turn into substantial capital over time, and these steps contribute to a financially secure life.