Want to know how to save money from salary every month? Well, this is a very common search term among both new and old salaried professionals equally. Wondering how to save money from salary in bank in order to fulfil your little or big dreams, both short-term and long-term? While the question is simple, the answer isn’t all that effortless and easy to follow. You need to be devoted, consistent and have strong willpower to keep yourself away from the distraction that can cost you a bunch. So, without any delay, let’s get you started on this journey of saving practices and how to save money from salary in India or in general, whichever way you prefer.
How To Save Money From Salary In Bank – Minimising Monthly Expenses
Can you cut down on that 50% living expense and instead, increase that percentage in your savings? Why not! Some of the ways how to save money from salary in bank are:
- Less transportation
- Essentials-only grocery shopping
- Less expensive choices
- Less electricity usage and bill
- Eating home-cooked meals than take-outs or orders
- Fewer entertainment expenses, etc.
Tips On How To Save Money From Salary Every Month
1. Monthly Budgeting Is The Key
The first tip on how to save money from salary is to know where all your cash is going. And this can be done by tracking your monthly expenses and making a budget out of it. Try to stick to that and don’t overspend. According to the golden thumb rule, spending 50% on living, 30% on lifestyle and 20% on savings are considered a smart choice. Try it!
2. Invest The Savings Correctly
There are numerous banking investment plans and direct market funds to invest in. Do not rush into it. Knowing how to save money from salary every month is researching well and starting with small amounts in assured ventures like SIP. Your money is hard-earned, hence invest and grow it wisely.
3. On-time EMI Repayment To Avoid Penalty
The benefit of being salaried is, you can avail EMI facility and repay it easily. But do not forget to do it. Or else, the hefty extra cost incurred to you due to delayed or missed payments will just burden your bank balance. A tip on how to save money from salary in bank is to automate these payments in case you are too busy to remember.
4. Do Not Take Debts
Wondering how to save money from salary with all the debts and loans burdened? Debts are the ugliest forms of stress one can take upon themselves. Hence, as soon as you get the salary, get rid of any outstanding debt and make sure not to take them anymore. A debt trap is harmful to your financial freedom.
5. Slash Down Unnecessary Subscriptions
A major reason why people are in a fix to know how to save money from salary in India is that most of us spend it on Netflix and Amazon prime for those mind-boggling series and on Hotstar for IPL.
Once in a while is acceptable but if you aren’t using these services to the fullest, do not keep the subscription dragging. It only increases extra expense on your part when you aren’t even using it. To know how to save money from salary every month, cut down on your entertainment plans and see the change yourself.
Also Read- Build Your Savings Plan With These Smart Methods
6. Stay Healthy, Reduce Medical Expenses
You’re halfway through completing the list of knowing how to save money from salary if you agree to the fact that it is better to opt for spending on healthy food than a long list of medicines and hospital bills. A bit of jogging and exercise along with plenty of healthy fruits and vegetables will save you the hassle, guaranteed.
7. Say No To Credit Cards Or Personal Loans
The greater awareness of how to save money from salary in bank is to know that credit cards and loans are just ways to bury yourself under unnecessary debts and expenses even when you aren’t using the service.
Their surcharges for non-usage and other penalties will only stress you out. So, to know how to save money from salary every month is to avoid loans or any kind of arrears.
8. Reduce Liquid Money, Stay Less On Cash
How to save money from salary every month when you’re tempted just by the fifty rupees note in your wallet? You’d probably treat yourself to a meal that’s not even needed. That’s how cash flows. Thus, be less on cash to avoid unnecessary spending on things you will later realise you didn’t need.
9. Avoid Expensive Indulgence
When you are living with a goal to crack the code on how to save money from salary every month, there shouldn’t be any room for luxury shopping and fine dining reservations. You will understand the technique on how to save money from salary in India if you keep it minimal and simple, avoid fancy expenses, spend according to your income and save more.
10. Save Automatically Using Tools
If you see it, you’ll want to use it. That’s why, to know how to save money from salary in bank, try setting up an automated transfer of your salary’s portion to your savings venture as soon as it is credited to your account. This way, you will systematically grow your savings for your long-term and short-term financial goals.
11. Save That Extra Bonus
If you can, do save that bonus you get on festivals or other occasions instead of spending it like a normal salary. It’ll give your savings a much-needed boost as well as solve your dilemma of how to save money from salary in India or anywhere else.
Also Read- Save Money On Tax – How To Invest Your Money
Conclusion
The tips on how to save money from salary in India are now at your fingertips. Hence, it is your responsibility to conquer your goals of how to save money from salary in bank and enjoy it wisely. Some general rules that we’d like to include are, to be consistent and not to save for two months and spend all in the third. Let the money accumulate for better returns and be determined. Don’t lose hope and success is all yours. Happy saving!
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