No matter how much money you make each month, ₹10,000 or ₹1 lakh, learning how to save money is an important life skill. Having a well-defined action plan is essential if you struggle with saving money or want to increase your monthly savings. You can choose saving over spending an important portion of your salary by developing solid financial habits.
This article will examine eight simple strategies to improve your monthly money-saving efficiency and help you learn how to save money from salary.
Let’s Dive right in!
1. Know your money
Before you start saving a significant amount out of your salary every month, it is important to learn more about the money going into and out of your bank.
Track your income and expenses
Knowing where your money is going is the first step towards saving it. Record your earnings and outlays first. Use budgeting applications and a basic spreadsheet to organise and track your expenditures.
Consider the following:
- How much do you spend on groceries, utilities, rent, and other necessities?
- Do you track how much you spend on entertainment, eating out, and shopping as non-essentials?
- Do any unexpected expenses consistently surface?
Make a budget
Create a budget that aligns with your financial goals and provides a clear picture of your income and expenses. A popular method is the 50/30/20 rule:
- 50% for needs (rent, utilities, groceries)
- 30% for wants (entertainment, dining out)
- 20% for savings and debt repayment
Automate your savings. Set up automatic transfers to your savings account to ensure consistency.
2. Spend smarter
Let’s learn about being a wiser and smarter spender of money.
Shop smart
Your savings can be greatly increased by making wise purchases. When purchasing things you use regularly, look for sales, use coupons, and buy in quantity.
Here are a few clever strategies to cut costs while you shop:
- Use cashback apps to get money back on your purchases.
- You can also sign up for store loyalty programs to receive discounts and special offers.
- Before making a large purchase, always check online prices to ensure you’re getting the best bargain.
Cook at home
Dining out can quickly drain your budget. Cooking at home is not only cheaper but also healthier. Plan your meals, make a grocery list, and stick to it.
Take on a meal prep challenge with your friends. Share recipes to see who can make the tastiest, most affordable meals.
Embrace the sharing economy
Services like Uber, Ola, and Airbnb have completely transformed the way we live and travel. Ride-sharing is a more cost-effective option than buying a car or renting out a spare room on Airbnb. For example, you last week, while driving to work from Mayur Vihar, Delhi to Gurgaon, Rishabh saved ₹730 by offering CarPool rides to people taking the same route.
Apps such as BlaBlaCar and QuickRides can help you find and offer carpool rides across India.
3. Maximise your savings
Now, let’s move to putting your savings on steroids.
High-interest savings account
Every savings account is not made equal. Look for accounts with greater interest rates to get the most out of your savings. In many cases, online platforms offer greater rates than traditional banks.
For example, Dive Money offers its users an impressive interest rate of up to 10.5 % on savings. This will make savings simple, straightforward, and more rewarding for you.
Save your salary bonus
Most employees are tempted to spend their pay bonus immediately upon getting it. But you should set that bonus aside if your ultimate objective is to make significant savings.
Save big with local shopping
While shopping in malls for branded items might seem trendy, it’s often an expensive habit. For everyday needs like groceries or clothes, local stores can offer substantial savings without compromising on quality.
Instead of paying premium prices for hybrid veggies and frozen fruits at malls, head to your local farmer’s market for fresh produce at lower prices. These veggies and fruits are healthier and more affordable.
Local shops often have similar-quality clothing at a fraction of the mall price. For example, a shirt costing ₹2000 in a branded store could be just ₹500 at a local shop, offering the same style and quality.
By switching to local shopping, you can enjoy significant savings and avoid unnecessary expenses, keeping your budget on track while supporting local businesses.
Try Dive Money
While juggling and hustling through finances can be a big challenge, Dive Money makes investments, savings, and investment-based savings easier for you, me, and everyone!
Whether you are just starting out your investment journey or are looking to diversify your portfolio, the Dive app can be a lifesaver for you.
Plus, the lock-in feature helps ensure that you don’t run after the saved money right away. As the reaction to cravings becomes trickier to act upon, you are able to save more and spend less, as long as you are associated with Dive.
Thanks to Dive Money, our users are being able to save more and grow more in a few steps. (Don’t worry, we are breaking them down for you).
Step 1: Download the Dive Money app
To start with, open the Google Play Store or Apple App Store on your mobile device. Search for Dive Money in the search bar.
Tap on the Install button to download the app.
Step 2: Create your account
After downloading the app, open the Dive Money app on your phone and tap on Let’s Dive In and enter your name and phone number.
After this, verify your account through the confirmation code (OTP) sent to your phone number.
Step 3: Set up your savings goals
Once logged in, tap on Create New Goal and verify your PAN and Aadhar.
After this, choose the type of goal, such as a vacation, gadget, or general savings.
Now, enter your target amount and the deadline. With Dive Money, you can start investing with as little as ₹100!
Step 4: Share and achieve goals together
Share and achieve your financial goals together by inviting friends and family to join in.
Simply choose the goal you want to collaborate on and share it with loved ones via email or phone number. Working together towards a common financial target makes the journey more engaging and rewarding.
Step 5: Track your growth daily
Watch your savings grow as you monitor daily updates. Celebrate your milestones along the way and stay motivated with real-time feedback on your financial growth.
Dive Money transforms saving into a fun and engaging experience. With a small initial investment and the ability to track progress and share goals, it’s an excellent way to reach financial milestones effortlessly.
Start your journey today and watch your savings grow!
Download here: iOS, Android OS
Best part—it’s an excellent way for Gen Z to manage their finances wisely without dealing with complicated terminology due to features like goal-based savings and up to 10.5% APR.
4. Invest wisely
Here are some strategies to help you maximise your financial progress and make wise investments:
Start investing early
Over time, the power of multiplying can greatly increase your wealth. Even if you only have a little money to invest, get started as soon as you can.
Think about these:
- Have you explored low-cost mutual funds or index funds?
- Are you taking advantage of investment opportunities provided by your employer?
Diversify your investments
Don’t invest all of your money in one thing. To reduce risk and increase potential rewards, diversify your investments across several different assets.
Investigate robo-advisors which can assist you in building a well-balanced portfolio according to your financial objectives and risk tolerance. These resources make investing easier and provide you with tips that are specific to your situation.
Educate yourself on financial literacy
The more you know about personal finance, the better decisions you’ll make. From reading books, listening to podcasts, and following financial blogs to stay informed to connecting with Dive’s Instagram or YouTube page for valuable financial insights—you can do it all to up your financial education game.
To top it up you can also converse with like-minded people on financial strategy by joining online communities or forums.
5. Earn extra money
Here’s how you can grow your wealth beyond your regular income:
Leverage your skills
Challenge yourself to make an additional ₹10,000 a month through side gigs like freelancing, tutoring, or selling handcrafted items. Whether you offer online classes or do freelance projects, every bit helps boost your savings.
Participate in the gig economy
Increase your income using gig economy services such as TaskBucks, Upwork, and Freelancer. Whether you’re skilled at content writing, digital marketing, or graphic design, these platforms provide flexible methods to make extra cash.
- To earn extra money, provide services like graphic design, virtual help, and teaching.
- Look for freelance jobs or local assignments that fit your hobbies and skill set, such as social media management or event planning.
These options enable you to diversify your sources of income, improve your talents, and increase your savings.
Turn unused items into extra cash
Clear out your clutter and earn some extra money by selling items you no longer need on platforms like OLX, Quikr, or Facebook Marketplace.
- Organise a virtual sale with friends and family to quickly offload items you don’t use anymore.
- Time your sales around festive seasons or popular shopping days to get the best prices.
This way, you can declutter your home and boost your savings with minimal effort.
6. Plan for the future
Here’s how to set yourself up for long-term success:
Set financial goals
Setting clear financial goals can help you stay motivated and focused. Knowing exactly what you’re working towards makes saving more purposeful. Whether you’re saving for a new device, organising a family vacation, or hoping to retire early, Dive Money can help you define and achieve these goals efficiently.
To maintain motivation on your financial journey, break down your goals into smaller, more achievable steps and recognise each accomplishment.
Build an Emergency fund
Unexpected things happen in life. For emergencies, set aside three to six months’ worth of spending. Maintain an accessible, separate account for your emergency fund.
Pay off debt
High-interest debt can hold you back. Focus on paying it off quickly.
- Use the snowball method: Pay off your smallest debts first.
- Consider a balance transfer to a lower-interest card to save on interest.
7. Live smart
Living a smart lifestyle can save a lot of money and relieve stress. Here are some ideas for living smart:
Accept simplicity
It’s better to have less. Living a simple life can help you save money and feel less stressed. Make sure you only purchase necessities.
A “30-day declutter” project can help you save money and simplify your life.
DIY projects
DIY projects can be a great way to save money and add a personal touch to your home. From fixing minor home repairs to creating beautiful decor, there’s a DIY project for every skill level. Try repurposing old furniture, making your home cleaning products, or even learning simple sewing skills to mend clothes. Not only will you save money, but you’ll also enjoy the satisfaction of completing a project with your own hands.
Stay healthy
Staying healthy can save on medical bills. Exercise, eat well, and avoid bad habits like smoking. Use free or low-cost fitness resources like YouTube workout videos or community fitness classes.
8. Build good habits
Now, let’s learn about how building good habits can boost your savings:
Adopt a savings mindset
A positive attitude towards saving can make a big difference. Set small goals and celebrate your progress.
- Start with small, achievable savings goals.
- Reward yourself when you hit a milestone to stay motivated.
- Track your progress regularly to see how far you’ve come, and adjust your goals as needed.
Avoid lifestyle inflation
As your income grows, don’t let your spending grow too. Keep your lifestyle modest and save the extra money. Each time you get a raise, increase your savings rate instead of your spending.
Hold off on buying for a little while
You could frequently make sudden purchases that result in excessive spending. You have to make an effort to stay away from this. After a few days, you may conclude that the specific item you were willing to purchase was more of a want than a need.
Start your financial journey today!
Making wise decisions and developing excellent habits are the keys to saving money on a 10,000 salary. Use these suggestions to reach your financial objectives and secure your future. It’s never too late to start, and never forget that every little step counts. Get started now and see your savings increase!
FAQs
Let us look at some of the most frequently asked questions while trying to save money from salary.
1. How can I save money on a tight budget?
Strategic planning and smart spending are necessary when operating on a limited budget. Keep a close eye on your spending, give priority to necessities, and search for places where you can save money. Use budgeting tools, prepare meals at home, and look for reasonably priced entertainment.
2. What is the 30-day savings rule?
You avoid making impulsive purchases for 30 days by the 30-day savings rule. Rather than wasting money on something you might not need, you give yourself thirty days to consider if it is necessary.
3. What are some essential budgeting tips for a 10,000 salary?
There’s a lot you can still do to save money out of your 10,000 salary. Let’s see what.
- Track Your Expenses: Use a budgeting app or spreadsheet to monitor where your money goes.
- Create a Realistic Budget: Allocate funds for needs, wants, and savings using the 50/30/20 rule or a similar method.
- Automate Savings: Set up automatic transfers to your savings account.
- Cut Unnecessary Expenses: Cancel subscriptions you don’t use and avoid impulse purchases.
4. How can I reduce my living expenses?
Here are some tips:
- Housing: Consider living with roommates or moving to a more affordable area.
- Utilities: Save on energy bills by conserving electricity and water.
- Food: Plan meals, cook at home, and shop with a list to avoid unnecessary purchases.
- Transportation: Use public transportation, carpool, or bike instead of owning a car.
5. How do I earn extra income on a 10,000 salary?
An extra income can make life easier on a beginner’s salary. Let’s take a look at different side income options one can opt from:
- Side Hustles: Freelancing, tutoring, dog walking, or delivering groceries.
- Gig Economy: Work through platforms like Uber, Fiverr, or Upwork.
- Sell Unused Items: Sell items you no longer need online or at a garage sale.
6. What percentage of my monthly salary should I save?
Savings should account for at least 20% of your monthly income. Adapt this percentage to your existing spending and financial objectives.
7. What are some free or low-cost entertainment options?
- Library: Borrow books, movies, and music from your local library.
- Parks and Recreation: Enjoy free outdoor activities like hiking, biking, or picnicking in public parks.
- Community Events: Attend free or low-cost community events, such as festivals, concerts, and workshops.
DIY Projects: Engage in do-it-yourself projects or hobbies that require minimal investment.