How To Save Money From Salary

No salary is too small to start saving. No matter what you earn, you must find ways to set aside a percentage of your income for your future needs. This would help you understand the need to live within your means and to foresee and plan for future income requirements.

Here are some tips to get you started.

Planned Savings: 

You can commit to paying a part of your income towards a savings or investment instrument. On a fixed day every week, month or quarter, a fixed sum of money would be paid towards this instrument. You should set this date sometime early every month while you still have money in your bank account. These fixed payments would accrue over a period of time and help you earn interest and capital gains.

Some options for you:

1) Bank recurring or fixed deposit

2) Mutual fund SIPs

3) PPF

Unplanned Savings: 

The amounts you will save these avenues may fluctuate every month. These are incidental savings. Some options:

1) Credit card cash backs and discounts

2) E-wallet cash backs

3) Bonus income

4) Gift vouchers and deals

Also, prepare a monthly budget in order to understand where you are spending your money and if more avenues for savings can be developed. For example, you may find that you’re eating out a lot, so you could significantly increase your savings by cooking at home.