How To Save Money With 30000 Salary?

Saving money is not that difficult. We can always save a few bucks once we get our salary. The problem starts when we do not know how to maintain those savings. Besides that, when a person gets enough savings, he/she thinks of ways to spend it, and all the savings go into vain. So, how can you maintain your savings? In this guide, I will tell you how you can maintain your savings. Besides that, I will tell you how you can save money with 30,000 salary per month. The methods for saving money varies according to the salary that a person earns. The methods to save money with an INR 30,000 will not match with tips for people earning INR 50,000. The tips and methods are different for different salary ranges. It will help people know how they can save and invest their money from their 18000 salary increases. When it comes to saving money, everyone starts giving advice and methods. Though most of the methods are useful, one can only save money if he/she is willing to. Various investment companies will show you various schemes. They will try to lure you to invest your money in them. Most of the people fall into such traps. But, if you research schemes and know about them, then you would be able to invest your money in the right place. But how investment and saving money connected? They are connected, and I will tell you about that in detail. But, here, the main focus is on saving money.

 

How can you save money? There are tons of tips and advice that I can give you. But it will be of no use if you do not know the basic things about saving money.

How Can You Save Money With 30000 Salary Or Monthly Income?

Though there are various tips and tips that you will get on how to start saving, the important part comes after that. It is easy to start saving money, but it is tough to maintain the flow. Here, I would help you know how to start saving money and maintain the flow. Here are some of the best tips that have always worked.

1. Use Simple Methods

Instead of jumping into advance savings schemes, it is always better to start with simple methods. There are some small, simple methods that you can start practicing if you want to save money.

i. Start Saving At Home

Keep a piggy bank at home and make it a habit to save money in there. Usually, we carelessly keep coins in our home and forget about it. Instead of doing that, you can put those coins in your piggy bank and save it. Though the process here is slow in the end, the result is relatively high. It will encourage you to save money and will slowly help you in developing this habit. This is one of the most simple methods which you can try at first. You can proceed towards other methods too. But this method will help you in getting habituated to saving money.

ii. Start Paying Yourself

When you receive your monthly salary, pay yourself too. Make it a habit to pay yourself at least 5-10% of your monthly salary. Though the amount might not be much, you can save it. By paying yourself, you are motivating yourself to work and save money for your goals. Save this money in your savings account. Paying yourself means saving money for a better future. It does not mean that you will spend this money on your “wants.” When you start paying yourself, you are securing your financial life after retirement. Moreover, if you cannot pay a large amount, you can start from a small amount. Start by paying yourself 1% of your salary and then slowly increase the amount. It’s all about experimenting and saving.

iii. Tip Yourself

Whenever you spend money on your “needs,” make sure you tip yourself. Why should you tip yourself? You should tip yourself because you completed one of your “needs” for the month. For example, you bought the groceries for the entire month. Now, tip yourself at least 60 bucks for doing this task. By giving yourself a tip, you are motivating your mind towards saving money. Your mind gets automatically charged that once you complete a task, you will get a tip. Save this tip in your piggy bank, and you will have a nice amount of money at your home, which you can use in times of emergencies.

iv. Hike Your Savings

It is important to increase the amount of savings. It will help you to keep up with the increase in price in your surroundings. Whenever you get an appraisal, make sure to increase a small percentage of your savings too. If you save around 5% of your savings and you got an appraisal, try to save at least 8% now. Hiking your savings will further help you to achieve your goals sooner.

2. Clear High-Interest Debts First

Most of the freshers have debts in their heads while joining a company. The most common type of debt is a student loan. It is highly suggested that you should first clear off your debt. Once you start doing a job, start paying off the loan. You can talk with your bank and decide which amount you have to pay for clearing the debt. Once you get to know the amount, plan your budget accordingly.

Separate the debt amount first and pay it to the bank. After doing that, spend the money based on your budget. When you receive a hike in your salary, increase the monthly EMI for the debt. Though it might be difficult to save money while clearing off the debts, you can try some simple methods. Moreover, when you clear around 50% of your debt, you can move forward with a savings account. Until then, clear the debt as soon as you can. If you are getting a high salary after appraisal, then talk with your bank and then settle the loan amount and pay it at once. While doing so, you will be spared from paying the interest money on the debt, which can help you save tons of money.

3. Never Ending EMIs

You should never stop paying your EMIs. I know it might sound absurd, and most financial experts say otherwise, but this is a tip for saving money. When you are paying your debt, you are making a budget accordingly. As per this budget, you can live comfortably even after paying your monthly EMI.

Once your debt is cleared, follow the same budget planning for yourself. Deduct the monthly EMI from your salary and save it. It is a mind trick that you can use for your benefit. Your mind is convinced that you can live even after deducting monthly EMI from your salary. So, continue deducting monthly EMI from your salary and transfer it to your savings account. This way, you would be able to save money effectively.

Make sure that you do not spend the EMI money after clearing off your debt. If you save that money, you will achieve your financial goals sooner than you think.

4. Postal Savings Scheme

There are tons of savings schemes that you can find in the market. But, one of the safest savings schemes is the “postal scheme.” The postal savings scheme provides you with risk-free options and nice returns.

There are 2 types of postal saving options, fixed deposit, and recurring deposit. Each of the deposit is different and will help you in saving money. A fixed deposit is used for locking the money for a longer period. Usually, you can use the fixed deposit for your long-term goals. This account’s interest is a bit higher than the recurring deposit, as it will lock your money for a longer period. You can either save a lump sum of money in the account or transfer the monthly amount to the account.

But, the recurring deposit is for the short-term goals. Here, you have to transfer a fixed amount every month. The interest rates in this account is a bit low, but the savings scheme is entirely safe. You can remain assured that your money will not get mishandled. Moreover, the recurring deposit will help you to encourage the habit of saving money. If you are opening an RD account, you have to deposit money every month without any fail. Another advantage of using a postal savings scheme is that you can deposit a minimum of 500 bucks to this account. If you miss any monthly deposit, then the account might get closed.

Though a postal savings scheme might not provide you with high-interest rates, it helps you save money in a risk-free manner. Moreover, if you have a debt to clear, then you can use this savings scheme for saving your money. If you are not sure about other savings schemes, you can research them and use postal schemes.

5. Budget Planning For Better Savings

Budget planning is a major step for saving money. If you do not plan out your budget, then there are chances that you would overspend your salary. How can you make a perfect budget plan?

To make a perfect budget, you first need to sort out the essential things for you. Make a list of things that you need every month to survive. This list will include your rent, groceries, food, transportation, electricity, and as such. After listing out the essential things, write down the approximate amount you need. Cancel out this amount from your salary. After canceling out the “essential” money from your salary, you will have some money left in your account.

Now, divide the amount as savings and “wants.” How to divide the money? Make a list of your financial goals to achieve and calculate the amount you need for each goal. Take one goal at a time and start saving accordingly. After canceling the “savings” amount, you will get a part of your account’s salary. You can use this amount for your “wants,” such as entertainment, picnic, partying, and as such.

 

If you have a debt, then cancel out the monthly EMI from your salary first. After that, cancel the essential money and the savings money. If you find that your essential money exceeds your salary, then sort out your list and cancel out huge expenses. Use a pen and paper to make your budget and stick to your budget. There are various apps available that can help you to design your budget. These apps will help you in dividing the money effectively and plan out your monthly budget. The only thing that you need to do is stick to the budget at all costs. Once you start neglecting the budget, you are going to ruin the balance of your monthly savings.

 

6. Financial Goals For Motivation

We usually need reasons to save money. What can keep you motivated to save money? Financial goals can be used as motivation for saving money. There are two types of financial goals, namely, short-term goals and long-term goals.

 

Short-term goals are the goals that need less time to achieve. Long-term goals are the ones that need around 8-10 years to achieve. If you want to save money, then plan out your financial goals. Write down the things that you want to achieve. It can be a new phone, a laptop, a flat, a car, a nice vacation, or anything. List out all these things in a paper. After writing down the things, sort them out.

How can you sort out your goals? List down the time that you need to achieve each goal. For example, if you want to buy a new laptop, you need to save for a year to buy it. Similarly, if you want to buy a nice flat in a metro city, then you need to save for at least 10 years for the down-payment. By using this tactic, list down the time you need for each thing.

Rank out the goals in your paper. Start with short-term goals that are easy to achieve. Once you achieve your first goal, go for the second goal. Like this, slowly proceed towards the long-term goals. These goals will continuously keep you motivated to save money for your future. Once you get focused, you will find it easier to save money. Short-term goals are easy to achieve, while long-term goals are a bit difficult. To keep yourself motivated while starting long-term goals, you can use some tips and tricks. Like, you can have some side-goals which will help you in achieving long-term goals and as such.

Financial goals are important as they give us the reasons to save money. Once a person finds a reason to save money, he/she will start the process. You must list your financial goals for saving money.

7. Saving On Health Insurance Policy

Not all companies provide their employees with medical facilities. If your company is not providing medical facilities, then you should buy a health insurance policy. Though investing in an insurance policy is risky, health insurance is a must for people who do not have any medical backup.

Medical expenses are the highest form of expenses, and if a person does not have any medical backup, it will cost a fortune. Hence, it is better to invest money in a health insurance policy rather than money on bills. Various insurance companies provide you with health insurance, which is under the budget and has various benefits. You can compare the health insurance policies of different companies and then choose the best one for you.

In the case of health insurance, the person has to pay the premium fees yearly. If you buy health insurance, it will encourage you to save money for the premium charges and even save you from high medical bills.

It is better to buy a health insurance policy in the early years of working as you will get more benefits when the insurance attains maturity. Moreover, when you complete your short-term goals and want to start with long-term goals, t health insurance policy’s premium charges will keep you motivated to save money. A health insurance policy will not give you any kind of loss. Instead, it will save you from the expenses of medical treatments. There are various health insurance policies like a family health insurance policy, individual health insurance, critical illness cover, group health insurance, senior citizen health insurance, maternity insurance, and much more.

Each of the health insurance is designed for specific usage. Like, maternity health insurance is designed for a mother who is pregnant. This particular insurance will cover all the charges from pre-natal to the post-natal stage. Most of the health insurance companies are even linked up with various hospitals. If you visit those hospitals for treatment, then you can get cashless benefits too.

8. Gold Savings

Investing in gold is one of the best ways to lock your savings. When you start to save money for your long-term goals, you will get the urge to spend the savings. Why? Because you have to save for around 8-10 years for the long-term goals and, commonly, you will get the urge to spend the money after a year’s savings.

How can you prevent spending this money? By locking your savings. Locking your savings means keeping it in an account where you cannot withdraw the money for years. Another option is to invest in precious metals like gold and silver. Investing in gold will help you to lock your savings and will keep you focused too.

Make it a point to invest in at least 5 grams of gold every year. By locking your savings in gold, you are sparing yourself from the urge to spend money. Moreover, the price of gold always changes. You can use the gold investment when the price is at its peak and get higher returns. It will help you in getting extra money, which will come in handy for your long-term goals.

People usually invest in gold because it is a safe investment. You cannot get any kind of loss by investing in gold. Besides that, it will lock your savings and will give you higher returns when you need it. Once you are moving towards the long-term goals, make it a point to invest in gold every year.

9. Savings Account

Various types of savings account are available in each bank. What is a savings account? The savings account is the type of account where you cannot issue a debit card and transfer money in it every month.

Though all the banks offer savings accounts, most banks do not provide higher returns on this. Before you open a savings account in a bank, look for a savings plan that will provide you with higher returns. Look for savings plans with higher interest rates and even have the facility lock your money for a period.

 

Research well and then open a savings account. Fix a specific amount that you will transfer every month and then start doing so. There is even the facility of automating savings account. Automated savings accounts are directly linked with the account where you receive your salary. Here, when you receive your monthly salary, a part of the money will automatically go towards the savings account. Hence, you will not have to transfer the amount to your savings account manually.

The automated savings account will deduct the amount which you have stated while opening the account. Apart from that, it will not deduct a single penny. Automated savings accounts are better because it will help you in maintaining your budget plan. You will not be able to disturb your savings amount if you are using an automated savings account.

10. Look For Company Benefits

Most of the companies provide certain benefits that most of the freshers are unaware of. Look for the company benefits as it will help you in saving money on certain things. While most companies provide a home to the freshers, others provide a certain rent amount to the freshers. Look for such benefits which your company is providing, and you will be able to save money.

If your company is providing you with medical facilities, then avail the benefits. It will save you from the high medical expenses, and you will get your treatment done. Most of the companies even provide transportation facilities for the employees. This would help you in saving money on fuel and transportation. While some have bus facilities, some provide carpooling.

Companies even provide with meal coupons and 2 times meals for the employees. This will help you in saving money on food. It is well known that most of the freshers prepare for competitive exams and higher studies. Companies provide such candidates with exam fees and even handles the education fees of the employee. It will help the person in saving tons of money on exams and higher studies. Look for such benefits and talk to your employer about this. Once you get to know about the company benefits, try to use them as much as possible. It will help you cut down expenses in many areas, and you can use that money to save.

 

11. Save By Net Banking

Though it might sound absurd, you can save money through net banking. With the growth in technology, even the banks are growing. Banks are turning into digital platforms, and net banking has become normal.

Banks encourages its customers to use net banking by providing tons of offers. Look for the offers that your bank is providing when you use net banking. Banks are usually linked with certain shopping and booking sites. When you use net banking while shopping or booking tickets, you will get discounts and cash backs, helping you save money.

Moreover, banks even provide points and rewards for loyal customers. You can use these rewards for various purposes. Besides that, banks even provide facilities like zero account opening to open an account without any charges. Not only that, banks even offer rewards if you prefer the services to your friends.

You can look for the offers and benefits of net banking by going through your bank’s official website. It will help you know how you can use your bank’s online facilities for your benefit. Banks now have their apps, using which you can transfer money too. Besides that, you can even pay your EMI using the online facilities of your bank. Know the various online facilities of your bank and start using them. It will help you earn rewards and spare you from visiting the banks for a simple purpose. You can do every bank process with just a single click. So, start using online facilities.

12. Save On Utility Bills

You can get tons of money in your utility bills. One of the easiest methods to save money on utility bills is by switching to energy-efficient bulbs like LED and CFL. By switching to an energy-efficient lighting system, you will see a huge difference in your electricity bills.

Another method to save money on utility bills is by unplugging electronic devices when you do not use them. Even when the electronic devices are switched off, they take a small amount of power while plugged in. it is better to unplug the devices when you are not using them. Though the difference might not be much, you will surely see a difference.

Besides that, make sure to use payment apps for making your payments for electricity and water. With the technology change, all the electricity companies are accepting online payments. By making online payments, you can get cashback and coupons, which will help you a lot. Moreover, you can contact your service provider and ask about the various offers that they are providing. It is better to know about the offers as it will help you in many ways. Most of the service providers offer discounts when you use a specific payment app for paying the bills. Ask about such offers and then proceed with your payment.

 

Moreover, make it a habit to pay your utility bills beforehand. Most of the companies provide cashback and discounts to the customers who prepay the bills. When you pay the bills in advance, you are getting a discount on your next payment. By doing so, you will be able to save a few bucks in utility bills. These small, simple steps will help you in saving some money on utility bills.

13. Saving By Maintaining Good Credit Score

If you are using a credit card, then make it a habit to maintain the credit score. What does a credit score mean? A credit score means the worthiness of the person for a loan. If your credit score is higher, then you will get more benefits.

How can you improve your credit score? If you are having a loan and regularly paying your EMI, your credit score will automatically increase. An increase in credit score will benefit you in many ways. It will decrease the interest rates, and your EMI amount might decrease after some time. Moreover, you can even settle down the loan at a smaller amount if your credit score is good.

Besides that, a good credit score will help you to get a loan easily. Lenders usually look for people with good credit scores to lend them loans. Moreover, a good credit score can even help you in earning rewards and points from the bank. You can use these rewards in various places and get discounts too. A good credit score is essential if you are paying off a loan.

Even if you are using a credit card for managing your expenses, make it a habit to pay the credit card bills on time. It will help you get points that you can use to pay off your annual credit card fees. Annual credit card charges are usually higher than that of debit cards, and if you have rewards, you can pay the annual fees with those rewards. Hence, pay your credit card bills on time and maintain good credit scores for saving money. It is better to settle the loan amount at a lesser amount rather than paying the interest amount. With a good credit score, you will get these benefits.

14. Save 50% Before Taking Loans

It is not possible to save the entire amount for any long-term goals. Ultimately, we need to take a loan to achieve long-term goals. But when should you take a loan? You should opt for a loan when you have saved at least 50% of the amount.

If you plan to take a home loan, then make sure that you have saved at least the amount for the down-payment. By paying 50% of the amount, your loan debt and interest rates will be lower.

By keeping your debts below 50%, you are allowing yourself to save money without any pressure. Though it is difficult to achieve long-term goals, and you might need to take a loan, it is better to take a lesser amount. Save at least 50% of the total amount as it will become easier for you to clear your loans.

The below 50% rule is highly effective and has helped tons of people. Though people take a loan of the total amount for long-term goals, by doing so, it will become difficult for you to pay off the loan. The interest rates, in this case, will be higher, and you will have to deduct a higher EMI amount from your salary for paying off the loan.

15. Saving By Earning More

You can save money by earning more. One of the best options is by doing over-time for a few extra money. But, doing the same work for extra income might not be the best way for everyone. What else can you do? You can go for an online internship and get some extra bucks and save it.

It is better to do an internship in a field that you love. If you are passionate about writing or drawing, you won’t find it difficult to work for the clients. The thing here is that when you do something you love, you get the urge to work more. Hence, you can earn more through your passion.

There are various websites and apps which provide online internships and clients for whom you can work. You can work as a freelancer and post your works for getting clients. The best thing about freelancing is that you are not entitled to any company and can work for anyone. Moreover, you can earn more through this method. This side hustle will help you earn a bit more than your salary, and you can use it for saving.

Moreover, you can even look for your nearby cafes and stores for any part-time jobs if you want. Most of the stores offer part-time jobs for the weekends, helping you get some extra money. The advantage of going for extra income is that you get to meet a lot of people. This helps you in improving your networking and circle. How will this help? A better network can help you in getting a better opportunity than your present job. Besides the extra income, you will even get the chance to showcase your field skills and grab a chance in a better place. It will become easier for you to switch jobs and get a better income. Through side income, you will be able to save extra money and get the chance for better opportunities.

16. Saving On Online Shopping

Online shopping has become a way of living. Earlier, we only had the option to shop for gadgets and clothes from online websites. But, now we can get everything from these online websites. The one-click shopping has proved to be both boon and a curse for the youth. It has made shopping easier but has even increased cases of overspending money. Impulsive buying has made it difficult to save money. How can we save money from online shopping in such situations?

 

One of the best ways to shop for money while online shopping is by comparing the prices. The same model of a chair would have different prices on different online websites. Before you proceed towards buying from the online website, compare the prices from different sites. Look for the site which is selling the same item at a lower price. After doing that, look for the “free shipping” option. Most of the websites have high shipping charges, which might add to your expenses. Make sure to check for the site which offers less shipping charges.

Besides that, most of the online shopping sites are linked with various coupon apps. If you use the coupon-apps for shopping, you will get various benefits. Shop from the link provided in the coupon-apps, and you will get nice discounts and coupons. Moreover, make it a habit to pay from payment apps. Payment apps provide tons of cash backs and discounts, which can help you in saving money. Before you make the payment, look for the offers you can get if you use payment apps. These shopping websites are linked up with payment apps to encourage customers to use them.

Do not save your debit card details on the website. If you do so, you will get the urge to spend money on shopping. Avoid linking your debit card details with your shopping account. This will help you to prevent impulsive buying while window shopping.

Online shopping websites conduct sales regularly. During such sales, the prices of the items drop drastically. But when should you shop during the sale period? Shop on the first day of the sale. Why? The first day of sale has higher discounts to attract more customers towards the website. If you shop on the first day of the sale, it will help you bag huge discounts.

Another important tip which you should remember is to avoid “offer” deals. Various deals like “buy 1 get 2 free” usually lure the customer into buying the item. People go for such deals even if they do not need it, just for the price. Avoid such deals and stick to your shopping list. You should make a list of the items that you need to buy from the online shopping site. It will help you to remain focused and avoid any excessive spending.

If you need to buy an item, but the price is too high, then leave the item in your cart for a few days. Why? Because the price will drop when you leave it in your cart for some days. The shopping website will use its algorithm to drop the price so that you will buy it.

Various websites even sell second-hand items. If you want to buy a book, the price is quite high at Amazon. You can get the same book on a second-hand book website in good condition. Various genuine apps sell second-hand items in good condition and at a lower price. Look for such apps as it will save you tons of money.

17. Sell To Save

Most of the time, we spend money unnecessarily and have tons of things that we do not need anymore. These things not only take up space but need maintenance too. Instead of keeping these things, it is better to sell off such things.

There are various websites on which you can put up any extra item and sell it off. Let’s say you have a table which you do not need anymore. You can open your account in OLX, put up an ad for the table, and set the price. People will communicate and then negotiate the price, after which you will sell it off.

By selling off unnecessary things, you are saving yourself from the burden of maintaining them. Most of the people throw away things while they are moving to another city. Instead of doing so, you can sell them off on the website and use that money for managing the expenses of movers.

Likewise, there are various second-hand bookstores and websites where you can sell your old books at a reasonable price. Sell off the books that you don’t need and save that amount for other purposes. By selling off useless things, you are making way for saving money.

18. Local Shopping For Saving

It has become a trend to shop in malls and buy branded things. Even if the items are highly-priced, people tend to buy things because of the trend. This is one of the major areas where youth spends the maximum amount of money. Everybody wants to remain in trend and buy things from malls. Even if it is groceries and vegetables, people tend to go to the malls first.

Instead of doing so, try going for local stores. Most of the malls do not serve fresh vegetables and fruits. Here, you would find hybrid veggies and fruits at a high price. Instead of wasting money on unhealthy vegetables, visit your local farmer shop. In the farmer’s shop, you can get fresh vegetables and fruits at a reasonable price. These are not only good for health but also good for your budget. Vegetables and fruits from the malls are usually frozen and full of chemicals. They are not at all good for health and are expensive too. If you want to buy vegetables, look for places where you can get fresh vegetables at a reasonable price.

Most cities have weekly markets where you can get all the vegetables, pickles, fruits, and even groceries at a reasonable price. Try going for such options where you can get good items at reasonable prices.

Not only vegetables but even various clothes in the malls are also highly-priced due to the brand name. You can get better clothes from your local store at a lower price. Let’s say you want to buy a shirt. You saw a shirt in the mall which is priced at 2000 bucks due to its brand. In your local shop store, you will get the exact shirt made of the same material and have the same quality at 500 bucks. Why not pay 500 bucks instead of 2000 bucks? Though people like to buy branded things, you should try local if you want to save money. By switching to local stores, you will be able to save yourself from getting bankrupt.

19. Stick To The List

Whenever you are going for shopping, prepare a list. Be it vegetable shopping, grocery shopping, or accessories shopping, always prepare a list. By preparing a list, you are stating the things you need to buy and budget accordingly.

Once you make a list, stick to it. It is important to stick to the list as it will help you prevent any extra expenses and maintain your budget balance. Most of the shopping marts use special shelf arrangement. Due to these shelf arrangements, customers tend to buy things that are not on the list and spend more.

Besides that, the shopping marts even arrange the items so that the higher cost item is in the front while the cheaper ones are at the back. Let’s say you buy a specific type of flour, which costs you 100 bucks. When you search for the flour packet in the shopping cart, you might not find it easily. Instead of that, you will find flour packets which are costlier. Most of the people tend to buy the costlier packets as it appears first. Try to avoid doing that. Search for your regular flour packet, and if you can’t find it, ask the service people to find it for you. If you buy the costlier packet, then it will ruin your budget. Though it might not seem like much difference, it will affect your budget in some way.

The shopping marts even have special shelves in front of the payment counter. These shelves have items that are below 100 bucks. People tend to add these things to the bill, thinking that they will not make much difference in the bill. But, it does make a difference.

There are shopping marts who keep a bag full of plastic bottles priced at 19 bucks. Even though you have enough bottles, you will add at least one bottle to your bill because you are getting it at a discount. The most common thinking is that, what if you don’t get the same thing at such cheap rates tomorrow? Even if you do not need that item, you buy it. Once you start avoiding such offers, you will find that the budget remains unaffected. Always stick to the list whenever you are shopping. Even if you plan for online shopping, prepare a list for the same, and follow it strictly.

20. Use Shopping Cards And Payment Apps

Almost all shopping marts and malls have their shopping cards. It provides certain benefits to the customers. If you visit a particular shopping mart for your daily needs, you should issue a shopping card. To issue a shopping card, you don’t have to pay a lot of money. The major advantage of using a shopping card is that you will get rewards points.

Whenever you buy something from the shopping card, the amount will be added as reward points to your shopping card. Next time when you visit the shopping mart, you can use these rewards points for making payment and get huge discounts. It will help you in saving tons of money.

Every shopping mart has its shopping card. Not only that, but most of the major brand stores also have their cards. Brands like Titan has its shopping card, which you can use while purchasing from the brand.

Other than the shopping cards, you can even use payment apps for making any kind of payment. Shopping marts are using online payment methods now. They are providing rewarding points to the customers who use payment apps for the bills. Use payment apps for making the payment, and you can get huge cash backs and other rewards from the store.

Make it a habit to use payment apps for making any kind of payment. Most of the payment apps even have certain offers, like “scan at 5 stores and get a cashback of 50 bucks” and as such. When you use payment apps for making any kind of payment, you get a reward from the app for sure. It can be a coupon, a discount card, or cash backs. You can even gift these cards to your contacts. Digital payment has made it easier for people to pay at any moment without using any case.

But, you need to use the apps wisely. One-click payment can lead to impulsive spending, which can later be a problem. Hence, only spend the money which you have stated in your budget or list. Once you start spending money on things other than your list, you ruin the balance of your budget plan.

21. Save For Occasions

Occasions are the time when we spend a lot of money on gifts. We buy gifts for friends, family members, and colleagues on various occasions. Be it a birthday party, New Year’s Eve, or any festival; it has become mandatory to buy gifts for your friends and family. Apart from that, most of the companies provide bonuses during such festivals.

Here, most of the people think of spending the bonus amount on gifts and parties during the occasion. If you also think like this, then you need to change it as soon as possible. Instead of depending on the bonus amount, it is better to save money for the occasions beforehand. Start saving for occasions at least 3 months before the date. By doing so, you are preventing yourself from spending the whole bonus amount on gifts.

When the time comes for buying gifts, you will have some money beforehand, helping you manage the cost. Moreover, it will help you to save the bonus money. Companies provide a huge bonus amount to the employees, and you should try to save at least 75% of the bonus amount. Save money for the festivals, and you will save the bonus amount from the company.

22. Emergency Funds For Savings

An emergency fund is different from a savings account. An emergency account is the one where you save money for emergencies. We do not know what might happen in the next moment, and it is good to have some emergency money at the time of need.

Make it a habit to transfer at least 3-4% of your monthly salary to your emergency account and do not touch it at all. Use this money only in times of emergencies like medical needs and as such. By creating an emergency fund account, you are helping yourself in many ways.

Let’s say there is some natural calamity in your area, and you are in trouble. Here, your emergency funds will help you in surviving the calamity. It would help you to at least survive for a few days till help arrives. Make it a habit to save money for emergencies. Though you might have health insurance, it is real money that is going to help you during such times.

If you have emergency funds, you will be able to face any kind of difficulties. Let’s say you want to start your own company. Though you might have saved some amount, your emergency funds will add some extra amount. It will help you to get the financial help that you need for the time being.

How Can You Start Saving Money?

A human being needs a specific reason or goal to start doing something. The rule even applies to save money. How can you start saving money? The answer is, by finding an aim to save money. Once you find your aim to save money, you will be able to start saving money. The main goal of saving money is for emergencies.

An emergency can occur at any time. If you have some money in hand, then you can tackle or survive in that emergency. Many people start creating their emergency fund as soon as they start working. It is not necessary that you need to put tons of money into that account. You can keep a part of your monthly salary in that account and use it in times of emergencies. This particular money can help you with medical needs, home payment, and many more. The medical bills are rising every day. In case there is a medical emergency, you need to have money to pay your bills.

Another reason to save money is for retirement. Life after retirement can be dreadfully difficult if you do not have any savings. Not everyone is an EPFO member, and hence it is important to save for your retirement. You can earn a lot of money till the age of 60, but after that, it will be difficult for you. During this time, if you have savings, then you will not find it difficult to survive without any salary. The savings will be useful when you are paying for medical bills and other essential needs. If you are earning INR 30,000 now and you do not start saving, then you are more likely to face a difficult life.

The 50/30/20 Rule

If you are planning to save money but do not know how much you should save, then the 50/30./20 the rule is for you. This is the ultimate budget rule, which has proved to be effective from time to time. So, what is the 50/30/20 rule? This rule states that for saving money, you need to divide your salary into 3 parts. The parts will be 50% needs, 30% wants, and 20% savings.

So, if you are earning INR 30,000 per month, then divide it into 3 parts. Spend the first 50% part of your needs. Here, the needs will include all your essential things like rent, debts, mortgage, etc. In this list, you have to include your groceries, electricity bills, food, and the things that you need. Keep in mind that entertainment, movies, and parties do not count in needs. Make sure that your 50% covers up all your essential needs for the month. If it doesn’t, then you might have to cut down some of your expenses.

The next part of the budget is 30% wants. The things that come in the “wants” list are movies, dining out, partying, and everything you wish to do. Make sure that your wants do not exceed 30% of your money. If they do, then you will not be able to save your money. It is important to limit your wants to this 30% of your salary. If you start spending more than your budget, then you will have nothing by the end of the month. You need to remember that you even have to survive on your salary for the entire month. List out what you want to do with the 30% of your salary and then spend accordingly. Do not cross the limit.

The remaining 20% of your salary is the part which you need to save. From your salary, separate the 20% and then save it for later use. Once you have made your budget with the 50% needs and the 30% wants, make sure to save the remaining 20%. Where should you save the 20% salary? You can save it in your savings account, in mutual funds, or in postal too. The options can always be confusing. Here, we would help you to know where you should save your money if you are earning INR 30,000 per month.

What Prevents Savings?

Certain things prevent a person from saving money. But, the most important points in this section are debts and overspending. These two factors are responsible for a person not being able to save money.

Generally, a fresher who has started doing a job has a student loan to pay off. If he/she does not pay off the loan accordingly, then it will be difficult to save money. Moreover, if the time increases, then the rate of interest on loan money also increases. If a person has any kind of EMI, then he/she should make it a point to pay at least 10% of the EMI amount every month. By doing this, he/she will be able to clear the debts sooner. Once you start clearing your debts, the path to saving money will become easier. Make sure that you talk to your bank about the loans and the time from when you can start paying the amount. By doing so, you will be able to create a budget that would fit accordingly.

Coming to overspending, this is one of the most common reasons to prevent people from saving. It is common for a person to spend money more than he/she can afford. It is difficult to control overspending, but you can do so if you have strong will power and a constructed budget. The main step to prevent overspending is to track your expenses and follow your budget. Follow the 50/30/20 rule, and you will not face any difficulties in preventing overspending. Once you start following your budget, you would start devising methods to save money.

Before you start following any method, make sure that you can follow it properly. If you do not follow your saving methods properly, then it will lead to problems. What problems? Problems like not having enough money in your hand, savings spent on loans, and many more.

Frequently Asked Questions