How to save money every month – Knowing the value of every rupee is essential in India, especially in middle class families. If you can save a certain amount of money every month, you will be able to achieve financial security. By following these tips, you can gradually build the habit of saving and achieve financial independence in the future.
How to Save Money Every Month – Practical Ways in India
Nowadays, the cost of living is increasing day by day. As the prices of goods, education, health expenses, house rent etc. are increasing, saving some amount every month has become essential. However, many people are not clear on how to save money and where to start. In this article, we will discuss “How to save money every month” In answer to the question, adapted to India’s special conditions, let us know some important tips.
1. Create a Monthly Budget
The first step in the frugality journey is making a budget. What is your income? Where are the costs incurred? A budget is very useful to know what are the needs and the non-necessities.
How to:
- Either on Google Sheets or on paper, write down your monthly income and expenses.
- Separate essential expenses (rent, EMI, electricity bill) and food expenses.
- Identify where unnecessary spending is occurring.
2. Follow the 50-30-20 rule
This is a very popular financial rule. This includes:
- 50% – Needs: Rent, Food, Electricity, Education etc
- 30% – for wants (Wants): cinema, shopping, travel etc
- 20% – Savings & Investments
By following this rule it is possible to limit spending to necessities and control desires.
3. Automated Savings
Set up an automatic transfer from a bank account to a savings account, so you don’t have to struggle to pay yourself every month.
Examples:
- Recurring Deposit (RD)
- SIPs (Mutual Funds)
- PPF (Public Provident Fund)
This saves money. It develops a good discipline.
4. Cancel Unused Subscriptions
Don’t waste money on unnecessary monthly subscriptions like OTT platforms, gym, music apps, cloud storage etc. Cancel those subscriptions immediately if you are not using them.
Hint:
- Take a look at your debit/credit card statements to see if any automatic charges have occurred.
- Cancel them immediately.
5. Learn to spend in cash (Prefer Cash Over Cards)
Digital payments make us feel less expensive. But using cash increases control over our expenses. If we want to take 500 or 1000 rupees daily and spend it, we think and spend it.
Tip: “Cash Envelope System” can be used for daily expenses.
6. Use Offers & Coupons Wisely
In India, many companies like Amazon, Flipkart, Swiggy, Zomato, and BigBasket give discounts and coupons. Use them wisely.
Caution: Don’t buy unnecessarily on the pretense of an occasional offer.
7. Increase Your Income
Saving is not just about reducing expenses, but also about increasing income. Consider freelancing, part-time jobs, tuition, digital marketing, affiliate marketing, etc.
Examples:
- Content writing (freelancing)
- YouTube Channel
- Blogging
8. Smart Shopping Habits
- Before every purchase – “Do I really need this item?” Think that.
- Put on WhatsApp, Flipkart Wishlists for 24 hours – buy later.
- Look out for Seasonal Sales.
9. Invest in Insurance
Without health insurance, even a small health problem can cost the entire savings. That is why it is better to take insurance at a young age.
Price reference:
- Term Insurance – Low premium, high coverage
- Health Insurance – Floater policy for family
10. Avoid Credit Card Overuse
Using a credit card makes us spend without thinking about the real cost. If you miss a payment any more, you will get a big fine. So it should be used very cautiously.
In short:
| Cost control method | purpose |
| Prepare the budget | Awareness of costs |
| Automatic savings | Regular savings |
| Check for unnecessary expenses | Money wastage reduction |
| Additional income | Savings will increase significantly |
| insurance | Protection during emergency |
