How To Save Money From Salary In India 2024: 10 Savvy Methods

author Ankita Content Writer

Don't save what's left after spending; spend what's left after saving- Warren Buffet.

Do you often struggle with how to save money from salary every month? Does the money in your bank account disappear a few days after you get paid? 

Well, it happens to many of us. That is why today, in this article, I will be telling you about several spending techniques through which you can save money every month from your salary. 

People of India work on the basic rule of expenditure, that is, 50% for living expenditures, 30% for lifestyle spending, and 20% for saving. However, this guideline should not be considered for personal goals since it will take a while to make all of this possible.

Furthermore, it is recommended that you read our article on the best credit cards for cashback if you're interested in learning more. 

How To Save Money From Salary

How To Save Money From Salary In India: 10 Working Techniques

Financial savings are not that complicated. The first step toward becoming more accountable in your financial journey is to establish positive habits. A few daily, monthly, and yearly routines can help you live a stress-free, financially secure life and significantly boost your savings. Here are some specific actions you can take to start saving money each month from your salary. 

1. Plan Your Budget 

Every month, people wonder how they can save more money from their salaries. The straightforward response is money management, which is essentially keeping an eye on where your money is actually going and managing your spending. You can gain a realistic understanding of your spending by making a monthly budget. This step will also assist you in determining how much is allocated to savings, debt repayment, needs, and wants. 

The budget can be divided into fixed monthly expenses like housing rent, utilities, groceries, transportation, and clothes. After that, set aside the money you'll need to pay off debt and loans and use it for savings. Finally, set aside a tiny sum for miscellaneous costs. The ideal budget might come later, but until then, you can make adjustments every month until you're happy.

2. Reduce Your Unnecessary Monthly Spending

Understanding the daily amount you spend in each category is another essential step. If you are unable to save the necessary amount, it is time to reduce your spending. Whether you use pen and paper, an Excel spreadsheet, or a free online spending tracker application, make sure to keep track of your monthly fees. Next, determine which costs are superfluous and where you can reduce your expenditures. Eliminating non-essential expenses is one of the easiest ways to save money. 

3. Saving And Investments

If you're still unsure of how to save money from your salary each month, invest your money in a platform that enables you to save and generate higher returns, depending on your financial goals. The goal of saving money is to safeguard your future finances while being ready for unforeseen circumstances or bills. Just enough money should be kept in the savings account to cover your monthly expenses. 

Next, list your financial objectives and group them into three categories: short-term, which is up to 3 years; medium-term, which is 3-5 years; and long-term, which is more than 5 Years. Invest your money in products that will help you reach your financial objectives and increase your wealth. Mutual funds, liquid funds, emergency funds, EPF/PPF, digital gold, corporate bonds, and more are some of the options.

4. Get Rid Of Your Debts

Paying off debts as soon as possible is just as important as investing monthly to create long-term wealth. In order to learn how to save a monthly salary, this is a crucial step. You will have more money left over after debt repayment to put toward investments. This is a result of interest rates associated with debt, which increase with each payment lateness. It is generally recommended to settle the debt with the highest interest rate first. You have two credit cards, for example. The difference is in the interest rate and the size of the principal in each case. Since the interest on the higher-rate card compounds more quickly, it is best to pay it off first.

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5. Pay Your EMI’s On Time To Avoid Penalties

It's possible that you are making instalment payments on your credit card or EMIs on a house loan. It is crucial to make sure the payment is made on time to prevent further fees and penalties. Verify that there are enough funds in your bank account. You may occasionally find yourself in a difficult financial situation for a variety of reasons. Make sure to use your emergency fund in this situation. 

Notify your loan service provider if you will be unable to make the payment for a longer period of time. They may be able to provide you with temporary relief. The secret to paying off your EMI and clearing your debt as soon as possible is to stay in constant contact with your bank and loan service provider. 

6. Avoid Loans

The idea is to invest or save money to earn interest. Thus, refrain from taking out a loan unless you have a good reason. One of the main obstacles to saving money is the significantly higher interest rates associated with loans. You could save a lot of money by not taking out loans for needless purchases. Alternatively, you can get the best and fastest loan without interest by using different promo codes with different loan providerss. 

7. Smart Online Shopping

Every month, the typical Indian considers ways to save money from their salary. Spending a large portion of one's salary on shopping can result in significant financial savings if done carefully. A wide range of websites and mobile apps that facilitate wise shopping have surfaced in recent years. Deals of every kind are available on more than 1,500 websites, including e-commerce behemoths like Amazon, Reliance Digital, and TataCLiQ. Best Cashback Websites in India, like Freekaamaal, also offer extra cashback of upto 100% on your purchases.

8. Save Your Salary Bonus

It could be tempting to treat yourself to immediate satisfaction when you receive an unexpected bonus. These include an incentive based on your performance or a year-end bonus. Nonetheless, learning how to save money from your salary requires exercising self-control and refraining from spending it all at once.

Rather, consider placing a portion of your bonus to increase your savings or make investments that can generate long-term returns. Consider these unforeseen fortunes as chances to improve your financial situation. Investing in them won't be an economic trend; rather, it will speed up your journey to security and stability in your finances.

9. Limit Dining Out

When it comes to budgetary concerns, one of the main ones for the average Indian household is meals. Although eating out can be very expensive, it can also seem like a great way to enjoy yourself and save a lot of time. Eating out often results in higher than necessary spending. You can save money by eating in instead of going out to buy necessities. Budget for and set aside time for dining once or twice a month. And adhere strictly to the guideline of not going over them.

10. Quit Bad Habits

Any unhealthy habit, such as smoking or drinking alcohol, can result in a significant reduction in income and can also spread a number of diseases that eat away at savings and hard-earned money. These bad habits are totally avoidable as soon as possible. This will protect you from health risks in addition to saving money on your salary.

Difference Between Savings And Investments

While investing and saving both contribute to wealth accumulation, the methods and results vary greatly.

  • Savings yield much smaller returns than investing, which takes advantage of compound interest to grow wealth faster.

  • Investment instruments include stocks, bonds, mutual funds, and exchange-traded funds (ETFs); saving instruments include bank accounts, fixed deposits, and money market instruments.

  • When it comes to investing, the time horizon is longer than five years, but it is one to five years for saving.

  • While investing can have moderate to high risk but exponential rewards, saving instruments are usually low risk and low reward.

  • You can live comfortably within your means if you have savings. On the other hand, investing enables you to have high aspirations and reach more ambitious financial and life goals, such as purchasing a home, financing a college education, and raising startup capital.


After reading this article, you must have understood how to save money from salary each month. Despite their seeming complexity, investing, saving, and budgeting are not hard ideas to understand. Begin by implementing these tips into your everyday routine. It might first appear difficult. Every now and then, you might want to take a vacation from keeping a budget and monitoring your spending. But you'll be inspired to apply best practices to your financial journey once you see the benefits show up in your bank account. 

Frequently Asked Questions

Q. What is the 50/30/20 rule?

A. According to the 50-30-20 rule, you should allocate 50% of your income to necessities, 30% to wants, and 20% to savings. You should also include the money you'll need for future goals in the savings category.

Q. What is the 40/30/20/10 rule?

A. The 40-30-20-10 rule is most commonly applied by allocating 40% of your income, after taxes, to housing and food expenses, 30% to discretionary spending, 20% to debt repayment or savings, and 10% to charitable contributions or reaching financial objectives.

Q. What is rule 69 in finance?

A. To estimate how long it will take an investment to double, assuming continuously compounded interest, one can apply the Rule of 69. The computation involves dividing 69 by the investment's rate of return and adding 0.35 to the outcome.

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I am eager to assist individuals with understanding different aspects of life through my content. The content that I write has helped many people grow their skills and knowledge. I believe I have a strong relationship with the written words as I love elaborating on minor details with surplus data

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