How to save money from salary every Month

July 19, 2020
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Money, money! If I will write it for thousand times, it sound’s amazing right! The whole world revolves around this five-letter word. Money doesn’t buy happiness, but it will be quite a relief to have rupees in your savings account? Many people are far away from that accomplishment in this real world.

The average savings of the Indian middle-class person comes to be around ₹10,000 per month. But he/she should save 30- 35% of his or her earning to survive in an uncertain situation like COVID 19.

Many people have lost their jobs due to this Pandemic. COVID 19 pronunciation sounds familiar in the whole world. How many people were financially prepared for the Pandemic situation like this or for any other? 5% or maybe 10%. What about the other 90% of people?

Time never comes! you should always know how to save money.

Do you end up having no money at the end of the month? Don’t be shy it happens with the majority of people, so you are not alone!

Do you always end up spending unnecessarily and regret it later? Don’t worry once I was also on the same page.

Well, you are in the right place then. We are going to tell you how you can change all that by how to save money from your monthly salary.

1) Get A Health Insurance Policy

  • A question may arise in your mind. How is it possible to save money by buying a health insurance policy, when you have to pay a premium every year?

  • The answer is, it’s better to spend ₹12,000 per year on a premium of a health insurance scheme, rather than paying a large amount of money on treatment of unexpected hospitalization. You will regret it if you have to pay lakhs and lakhs of rupees for the sudden hospitalization.

  • Diseases and accidents come without an invitation. You may save a few lakhs on hospital expenses in case of an emergency. The best way how to save money in India.

2) Keep a track of your finances

  • As soon as you start earning, the first thing you should do is keep a track of the inflow and outflow of money. It can get very tempting to just spend as and when you wish and not care about where you have spent your money.

  • Firstly, make a note of the amount that is being credited to your account every month. Next, note down every expense that you make and divide it into 2 categories — fixed and variable. Under the fixed expense category you can put rent, bills, basic groceries, etc. Under the variable category, you can add purchases that aren’t going to recur every month such as eating out, vacations, etc.

3)ELIMINATE CREDIT CARD DEBT ASAP

  • No one ever plans to go into credit card debt. It’s often the result of either overspending or unexpected medical events or emergencies.

  • Having credit card debt is really a financial emergency in and of itself given the typical ridiculously high-interest rates. If you’re in this situation, you should make it a priority to get rid of it as soon as possible. Remember, you want compound interest working in your favour!.

4)Start an emergency fund

  • After allotting a small percentage of your savings to clear off your debts, it’s time to create an emergency fund. Another 5-10% of your savings need to go to the emergency fund.

  • This will be the amount that you’ll set aside every month and not touch it unless it’s an emergency. This will help back you up when you are in a bad situation financially. How to save money each month is very crucial. Start now, don’t wait for any situation.

5) Savings

  • Let’s focus on our main part…SAVINGS.
    After deducting the expenses, debt amounts, and emergency fund from your income, the amount remaining is what is going to be your actual savings.

  • If there is an emergency, you will fall back and use your emergency fund but try not to use your savings.

  • Your savings should be close to 30-35% of your income. This is the best to save money tips.

  • Now that you know the exact amount you can comfortably save every month, transfer this amount to your savings account as soon as your salary is credited.

6)Invest – Start investing your money!

  • Last and final step and my personal favourite are starting investing. Making a budget, savings, investments can seem too complicated to understand but it is not. It is the best thing you can do to secure your future.

  • They say that life is short and you shouldn’t worry too much about the future but it’s always better to be prepared to deal with tough situations. So go on, have fun but also, don’t forget to set aside a good chunk of money in your savings account.

#For any consultation or any suggestions you can connect and I will help you to accomplish your dream and secure your future! You love your family then start loving how to save money every month.

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