The most fantastic advice your parents, teachers, trainers, and millionaires gives is to save some percentage of money from your salary to fulfill your desires and dreams.
Some earn enough to pay the bills and save it, and some middle-class people sacrifice their wishes to cover expenses. But if you learn the proper process to manage your money, it’s easy for you to save a good amount of money from your salary.
We’ve covered some most practical tips for you to manage your money. In the long term, you’ll understand the importance of your savings to fulfill your dreams. And if you want to know the exact strategies to save money from your salary, keep reading this article.
Tips to Save Money from Salary in India
1. Make a Budget for Yourself
The most practical method to save your money is this. You need to create a budget for your monthly expenses, your bills and have a separate account for saving. First, track your expenses and then start managing your money. Make sure your wishes are priorities at the end and pay the bills at the top. When you start making a budget, track where you spend money and realize how to manage and save it.
2. Set Realistic Financial Goals
You need to set some realistic financial goals for yourself. Because if you imagine unrealistic goals and don’t hit them, then you’ll not follow financial goals. So first, you need to set realistic goals like how much money you want to save at the end of the year ex- Rs. 1,20,000 at the end of the year means you need to save Rs. 10,000 per month. It’s time to select your achievable goals and ask yourself – how will you hit this goal? Only then will you’ll achieve your goals.
3. Always Create an Emergency Fund
The most practical advice for you is, create an emergency fund. We don’t know when we need money in an emergency, and at that time, your emergency fund will help you handle the situation. You need to open a separate account for the emergency fund so that you’ll completely forget until an emergency comes to you.
4. Get Rid of Your Debt
In India, most middle-class families are not able to save money because of debt. Because debt also comes on the top priority list. After your daily expenses, you need to pay your debt, and then you can do savings. So make sure you’re debt-free and not using a credit card to fulfill your desires and dreams.
5. Start Investing Without Losing
Follow the rule of never losing money while investing. Ask yourself before investing, are you going to be in profit for sure. Because earning money is simple but not easy, you need to spend wisely. And when you start investing money long-term, you’ll start getting cash flow. There are many safe investments you can do like mutual funds, any investment plan, etc.
6. Open Fixed Deposit
When you save some amount of money in your account, the first thing you can do is open a fixed deposit. It’s the safest and best investment for Indian families to save their money. And you’ll also get good returns and interest for a specific period. So you should select the best investment plan for a fixed deposit and open it as per your suitability.
7. Real Estate
If you’re earning a good amount of salary per month and covering all your expenses and bills, then you can invest in real estate. Buying properties is the best way to grow your money rapidly for a long-time. Without any risk, without any efforts, you can start investing in real estate if you have a good amount of money. Buying cheap and selling at high prices is the biggest game in real estate. Else you can purchase properties and rent to get monthly cash flow and generate multiple cash flows. Nothing is better than investing in real estate.
8. Find Ways Where You Can Cut Expenses
When you start tracking your money, you’ll identify where you can cut extra expenses like food, traveling, subscriptions, and many things you don’t need. So first, track your money, and then you’ll understand what’s essential for you and where you can save money.
9. Looking for Offers and Cashback
Some people think it’s a cheap way to save money from your salary, but if you spend some considerable amounts with 10% cashback, then you’ll understand the real power of using Cashback and rewards. When some people use credit cards for daily uses, they’ll get points, and with these points, they can travel for free and stay in a hotel for free by using these points. You don’t need to ignore and understand how beneficial it is for you to take offers and rewards.
10. Start a Side Hustle
It’s utterly dependent on your mindset; if you’re open to doing some side hustle to earn extra money, you should start a side hustle. A small investment and a good Idea can help you to generate a good amount of money. A side hustle is profitable, and some salary earners earn more from side hustle than their salaries. If you can spend a few hours on your side hustle daily, then you can start generating good money from your hustle.
11. Looking for Small Increments
As a salaried person, the bonus can be the best gift for you. To manage your finances, you need to look for small increments in your income. Work overtime, ask for a Bonus and do something extra work for Increments. That’s how you can manage your money in small increments gradually.
How Much Should You Save from Your Salary?
This question is confusing lots of people. Because they don’t know the correct percentage of money, they need to save per month from their salary. There is a general thumb rule to save money from your salary is 20% off savings. When you start saving 20% saving monthly from your salary, you can increase your percentage by at least 1% every month. And you’ll see a lot more difference in your savings. This method is beneficial and helps you to save more to fulfill your dreams.
There’s a plan called 50/30/20 for a salaried person. This rule tells you to manage your money by 50/30/20, i.e., 50% for spending on expenses and essential Bills, 30% spend on your wants, and 20% for saving purposes. It’s the most intelligent way to save your money and manage it.
After reading this article, saving is not an issue for you. Now, you know the exact methods to manage your money and save it. We’ve listed the best ways to save money from your salary. Now it’s your turn to start saving money from your salary with these practical ways.