How to Save Money From Salary?-Best 15 Tips. सैलरी से सेविंग कैसे करें? बचत ही बचत बस कर लो ये काम
Saving money from your salary is critical aspect which involves strong financial planning and regular following of some specific money saving tips and tricks. In this article we will give you some strong tips and tricks to save money specifically from your salary.
How to save money from salary is a common question of every salaried person. It is very difficult to save some penny from salary for most of the salaried people, not only for salaried but for business class also because they don’t have regular and fixed flow of income, so business class also want to know how to save money from income. Here we will give you answer of your question how to save money from salary or from business income. We will tell you about some strategies to reduce your expenses and to increase your savings and investment also.
Golden Rule of Budget and Saving-50/30/20
This is fundamental rule of Saving.
What is 50/30/20 rule? Here we will explain in details.
As per this rule we have to divided our income into three parts.
1. 50% For Needs:
First part of your income should be for your needs. You can spend up to 50 percent of your income on your needs. Needs means those things which can’t be avoid and which is necessary for living. For examples Food, Vegetable, medicine, school fees, electricity bill etc.
2. 30% For Wants:
Second part of your income should be for your wants. You can spend up to 30 percent of your income on your wants. Wants means those things which are not essential but can improve your standard of living. For examples mobile phone, car, air condition, luxury goods for your house etc.
3. 20% For Saving:
Third part of your income should be for your saving. You should save at least 20 percent of your income and should invest that saving into wealth creations options such as mutual fund, real estate, money market etc.
Top 15 Tips and Ideas to save money from salary
Here are top 15 tips and ideas to save money. If you follow these tips you will surely save money and will never ask how to save money from salary.
Top 15 Tips and Tricks
1. Set Your Goals
2. Make Budget
3. Cut Expenses
4. Limited Debts
5. Avoid EMIs based purchasing
6. Avoid unnecessary and unplanned expenses
7. Don’t spend too much on depreciate goods
8. Initiate Small Saving
9. Start Automate Saving Plan
10. Create Emergency Fund
11. Do Smart Shopping
12. Use Your Credit card wisely
13. Pay Your Bills and EMIs on Time
14. Follow 30 Days Saving Rule
15. Regular Financial Education
1. Set Your Goals:
Before starting anything set a goal. Your goal can be short term such as buy a car, a mobile, plan a vacation or can be log term such as child education, marriage, dream house, retirement planning etc. Without goal you can not achieve anything, so start saving according to goal. Goal setting means half done of your work. So it is very important to set your goal very wisely which should be realistic. Well decided goals are clear picture to motivate you. So focus on that first.
2. Create Budget:
Next step is to create your budget. A well planned budget is a road map to achieve your goals. Prepare your monthly budget as well as yearly budget. Compare your monthly income with your monthly expenses and try to reduce expenses compare to your income. If you get surplus this is achievement for you, if there is deficit then cover this deficit in next month budget.
3. Cut Expenses:
Try to cut down your expenses. In another words save from expenses. Is it possible to save from expenses? Yes it is possible, How? Here is some explanation.
Suppose your monthly electricity bill is 5000/- per month. Figure out how many lights you are using in your house, can you reduce consumption of any one for few hours. If you save electricity one hour per day of one light, you will save 30 hours electricity consumption in a month. Switch off lights and fans when they are not in use. Be conscious about unnecessary use of resources.
This is only one example, there are many examples in our daily routine life where you can save resources as well money from your expenses. Check your expenses regularly and cut down that which is not necessary such as old subscriptions etc.
4. Limited Debts:
Take debts or loans when it is too much necessary. Take these debt when you are creating your wealth such as house loan or education loan. Avoid debt as much as you can because these debt will take a big part of your income in interest and in EMIs. If big part will go in interest and EMIs then saving would be very difficult for you.
5. Avoid EMIs Based Purchasing:
Some people buy their goods on emi such as TV, Car, Washing machine or other luxury goods. To buy luxury goods on emi is not a good habit. These are not necessary goods so you can buy these when you have money in your hands. If you want to save money from your salary and want to build good wealth stop this habit.
6. Avoid Unnecessary and Unplanned Expenses:
Sometimes we spent money without a planning, which is out of our budget. For example we like a costly painting in a fair visit and buy it for our house. After few days when your budget mismatch you feel that expenses was unnecessary and can be avoid. So before buy anything think twice.
7. Don’t Spend Too Much on Depreciate Goods:
Spend very wisely, don’t spend too much on that goods which depreciate and never give any return such as luxury car, costly mobile phones etc. Save that money and invest so that you can earn something in return.
8. Initiate Small Saving:
Always make habit of saving. Small saving can be convert in big corpus. Educate your kids to save money. Introduce a small piggy bank to your family members and start small saving per day. This should be a habit.
9. Start Automate Saving Plan:
Start any saving plan which is automatic or ESI (Electronic Standing Instruction) based. Start some SIP (Systematic Investment Plan) and tied yourself in compulsion saving. This will help you to achieve your financial goals.
Convert your saving into good investment such as mutual funds, money market instruments, equity market, real estate etc.
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10. Create Emergency Fund:
Building an emergency fund is a fundamental step in financial planning. Aim to save at least three to six months' worth of living expenses. This fund acts as a financial safety net in case of unexpected events, such as medical emergencies or job loss.
11. Do Smart Shopping:
Buy your goods, groceries, clothes etc in smart way. Try to take out benefits of discounts, use bonus points, promotional offers, seasonal offers etc. These all will help you to save your money.
12. Use Your Credit Card Wisely:
Credit card is also a good tool to save your money only if you use it wisely. Buy goods on credit card but not more than your budget or your planned expenses. Take benefits of bonus points you get for your shopping. Redeem points on time before they lapse. There are many offers where you get more discounts to use credit card, take benefits of those offers and save money.
13. Pay Your Bills and EMIs on Time
Always pay your bills and EMIs on time to avoid any penalties and extra interest. Payment of your bills like electricity bill, phone bill etc also important to pay on time, otherwise extra fines or late fees shall be imposed on you which will impact on your saving.
14. Follow 30 Days Saving Rule
Always postponed your unnecessary purchase for 30 days. Think again whether purchase is important or not. If you think it is still important to purchase then go for it otherwise leave.
15. Continuous Financial Education:
Stay informed about personal finance through books, articles, and online resources. Continuously educate yourself about investment options, money management strategies, and financial planning. The more knowledgeable you are, the better equipped you'll be to make informed financial decisions.
Conclusion:
Saving money from your salary is a multifaceted process that requires commitment, discipline, and strategic planning. By understanding your financial situation, creating a comprehensive budget, and setting realistic goals, you lay the foundation for financial success. Automating your savings, living below your means, and making informed financial choices will further enhance your ability to save and invest for the future. Regularly reassess your financial strategies, adjust as needed, and seek professional advice when necessary. Remember, successful money management is a journey, and with dedication, anyone can build a secure financial future.
FAQ-How to save money from salary?
1. What is the 70/20/10 rule money?
The 70-20-10 rule of money divides after tax income into three parts: 70% for expenses related to your living, 20% for debts payment and savings and 10% for extra savings and donations.
2. What is the best budget rule or salary split rule?
Divide your income into three parts, 50% for needs, 30% for wants, and 20% for savings.
3. What is the 30 days savings rule?
The 30 days savings rule is very simple, this rule says avoid your impulse purchase for 30 days. In another words wait for 30 days before buying anything. In 30 days time do analyses whether purchase is necessary or not.
4. What are best saving plans or options?
5. What is SIP? Is SIP really good investment?
SIP means systematic investment plan. It is regular invest or saving plan. You can start it with minimum of Rs.500 Per month.
Yes SIP is really a good investment for regular saving and good returns. In general it gives return more than FDs in long run.