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How to Start Saving Money on a Low Salary in India


 

Introduction

Saving money while living on a low salary can feel impossible, but it isn’t. With small changes, smart choices, and a bit of discipline, you can start building financial stability even with limited income.

In this post, we’ll share simple and realistic steps for salaried employees, students, or anyone earning under ₹20,000/month to start saving money in India.


1. Track Every Rupee

Before you start saving, know where your money goes.
Use a notebook, Excel sheet, or apps like Walnut or Good budget to track every expense — from chai to rent. You’ll quickly identify unnecessary spending.


2. Start with Just ₹10 or ₹50 a Day

You don’t need thousands to start saving. Set aside ₹10, ₹20, or ₹50 daily using a Piggy Bank, Paytm Wallet, or Gold SIP app like Jar.
Small savings daily = Big impact monthly.

"It’s not how much you save. It’s that you start saving."


3. Cut Non-Essential Expenses

Cancel unused OTT subscriptions, limit eating out, and switch to prepaid plans.
Ask yourself: “Do I need this, or just want it?”

Every ₹200 saved is ₹200 earned.


4. Follow a Modified 50-30-20 Rule

On a low salary, the standard 50-30-20 may not work. Try this breakdown:

  • 70% for Needs (rent, food, bills)

  • 20% for Wants (shopping, entertainment)

  • 10% for Savings

If 10% feels too much, start with just 5%.


5. Automate Your Savings

Open a Recurring Deposit or enable auto-debit plans.
Let your bank deduct ₹300–₹500/month automatically after your salary is credited.
What you don’t see, you won’t spend.


6. Earn a Little Extra

Look for part-time income opportunities like:

  • Freelancing (writing, design, social media)

  • Selling products on Meesho or Amazon

  • Tutoring online or offline

Even ₹1,000/week in extra income boosts your savings by ₹4,000/month.


7. Set Micro Goals

Don’t try to save ₹1 lakh immediately.
Start small:

  • ₹500 emergency fund

  • ₹1,000 for recharge

  • ₹2,000 for investments

Celebrate small wins — they lead to big ones.


8. Build an Emergency Fund (Gradually)

Start putting aside ₹100–₹200 every week.
Once you reach ₹5,000–₹10,000, you’ll have a buffer for tough times.


Final Thoughts

Don’t wait for a salary hike to start saving.
Start today, start small, and be consistent.

Even ₹20 saved daily = ₹7,300 a year.
That’s the beginning of wealth-building.

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