Nikhil Kumar
I've made 100s of financial sins and when I decided to get my life together, I started learning about Personal Finance. I've read 100s of Books and have watched hours of videos. Here, I will share my mistakes and learnings with you.

9 Golden Tips How to Save Money in India in 2020 | How I started

I’ve seen many people in my life who struggle to save. Not because of their salary but the way they manage their money. They don’t know how to save money at all!

Even I was in the category of financial illiterates. But with time and a few bad experiences, I learned how to save money in India (Not that I have lived in different countries, but in a desi context).

In India, we are known for saving our money perfectly. Our moms are the best example. They always have a backup – a hidden treasure.

Here are the 9 Golden Tips How to Save Money in India:

These money-saving tips have been tried and tested by myself and I consider them as a few of the best ways to save money.

No matter if you’re a student, businessman, or trying to save money from your salary.

These steps would help you to start and have a massive amount of savings in your account:

1. Track your Expenses

tracking expenses to save money

I remember my mom and dad maintaining a diary where they used to write monthly expenses. Even if they bought a pen of Rs. 10, the expense was noted down.

While growing up I found this idea very stupid and never followed it in my initial career. I always thought, “Oh I can download the bank statement anytime”.

But the truth is, I never looked at my bank statements. There have been times when I had spent all the money but never knew where exactly.

But now I love this method of keeping track of my expenses, it gives me a clear picture where my money flows.

I don’t traditionally maintain a diary but maintain an excel sheet. I’ve also explained the Need Vs. Want concept in my previous articles. Avoid WANTS and pay for NEEDS.

But, saving money doesn’t mean you kill your desires, you may also use 50-30-20 rule where you use 50% of your income for essentials or need, 30% on Wants, and save 20% of your salary.

2. Pay off your Debts

There’s no point in saving money if you’re running negative in Cashflow.

I still recommend saving 10% of your earnings. As debts come with interest, it can damage your savings plan. It also reduces a lot of stress you might be going through. Subconsciously, we are always stressed when we are in any kind of debt.

But during this, I strongly recommend to not to fall into another debt. Stop using credit cards, taking personal loans, or credit lines.

And who likes those irritating calls from Debt Recovery Agents?

Also Check: How to get rid of credit card debts

3. Set Goals and Make a Plan

goals for saving money

If I ask you, why are you reading this article? Most of you will say “because I want to start saving. Duh!”.

But I say that’s a wrong mindset. Always set a goal. It could be anything – buying a new phone, a trip, or anything you have been waiting for.

For example, I want to save Rs. 1,00,000 for my Bali trip in December. So I need to save Rs. 8333 per month from my salary.

Now you can either save it normally in Savings account or open up an RD (recurring deposit). Later you may not go to Bali but you’ll still have 1 Lac Rupees as a saving.

However, saving Rs. 1,00,000 is a very huge goal for most of us. I would suggest you keep smaller goals as well. Little winnings will always keep you motivated towards saving more money.

4. Pay Yourself First

This is one of the oldest and thumb rules for Personal Finance.

I always recommend this. Even if you’re in huge debt, I recommend keeping your savings aside as soon as you get your salary. If you will wait for a month to end and save the remaining, you won’t be left with anything.

Also, keep this money in a completely different savings account if possible. For this, I had opened up my bank account and didn’t opt for any debit card and internet banking.

This helped me controlling myself to spend that amount. You could try the same.

Open up a Recurring deposit within your pay-check week and set up an auto deduction from your primary account. Also, paying yourself first can help you in making a really good habit of saving money.

5. Shop Online

shop online

I believe shopping online can help to save a lot. Whenever I visit any supermarket, I have noticed I come back with a lot of useless stuff. In fact, I’ve bought 10 packets of Lays, different types of deodorants, or facewash most of which I never used.

Shopping online not only controls the unnecessary buying it also gives you the flexibility of comparing the product on different websites.

E-Commerce is a huge space with a lot of competition. Due to high competition, you also get good offers and cash-backs. But make sure you get that Free Delivery!

Being a digital marketer myself, I know how we work hard to upsell products on the website. But if you’re on a saving spree, don’t buy recommended or related products.

If you still decide to purchase things from supermarkets or local stores, go with a list and strictly follow the same.

6. Use Credit Cards

Most of you will think about why I’m suggesting credit cards even after a horrible experience.

Well, the credit card comes with a lot of benefits as well, if you use wisely.

My Kotak Credit Card gives 2 PVR Gold Class tickets every month for spending Rs. 15000 per month. Which I obviously do.

I also get points in my other credit cards which I can redeem during buying something.

But But But, don’t overspend your credit card. We are just using the credit card instead of a Debit Card. Don’t use both of them. Pay off the credit card bill as soon as it is generated.

7. Stop Drinking and Smoking

I know this won’t be easy at first but if you stop these habits you will be saving up to Rs. 30,000 – Rs. 50,000 in a year. It is also injurious to health. Remember?

8. Get a High-Interest Savings Account

If you are using your regular account like SBI you’re potentially missing 3% of interest on your savings.

Generally, banks offer only a 3.5% interest on the savings account. But banks like Kotak Mahindra offers 6% interest.

Find out such banks and open your account in them. The best way to save is by keeping this new account only for savings, not for your daily transactions.

9. Start Side-Hustle

I always believe making 1000 Rupees is a lot easier than saving 100 Rupees in a Day.

Start a side hustle. If you work 9-5 at the office, work on your side hustle 6 PM-10 PM.

You won’t find immediate success in this but it works well in the long run. I will be sharing my side hustles with step by step guide so that you can start them too.

Subscribe to my newsletter to get notified when I post my Side Hustle Articles.

I earn $1000-$1500 per month from my blogs (Not this one). I have created a free step by step guide for you. Check here: How to Start Blogging in India in 2020 | Free Step By Step Guide

10. Close unused Savings Accounts

However, I always advise having multiple bank accounts. But, a lot of bank accounts come with various charges. It is not advisable to have an account if you don’t have enough money to keep them filled.

For example, let’s suppose you saved a minimum balance of 10,000 in an account. There must be some SMS Charges, Debit card charges, and 100s of unknown charges.

This would reduce your balance below the minimum maintenance balance and voila! You are charged a non-maintenance fee. Instead of saving money, you just lost some.

On average, banks charge 500-1,000 Rupees per year.

This has happened to me a lot of times. So I decided to close the accounts that I hardly use. Even now I have many accounts, but I make sure I’ve sufficiently filled them.

Let’s recall what we learned today about saving money with the help of this infographics:

save money in india infographics

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These were the few steps that I followed. Unfortunately, we are not taught these things at schools. I really hope people learn more about money and start to save money in India.

Frequently Asked Questions

Let’s talk about some of the FAQs that people have about saving the money.

1. How to save money in India?

This article explains all the steps in detail. Some of the basic steps of saving money in India are:

  1. Track your Expenses
  2. Pay off your Debts
  3. Set Goals and Make a Plan
  4. Pay Yourself First
  5. Shop Online

2. How much money should I save each month in India?

It depends on your salary or income. you may also use 50-30-20 rule where you use 50% of your income for essentials or need, 30% on wants, and save 20% of your salary.

3. How do I convince myself to not spend money?

Saving money is a slow process. The best way is to save money each month. Open a separate savings account with no internet banking and ATM.

3. How to save money from salary?

Pay yourself first. Deposit at least 10% of your salary in a separate savings account that you don’t use much. You should do it on the same day when you receive your salary.

I hope this article was helpful. If you have more questions about saving money, feel free to write them down in the comments section.


Nikhil Kumar

A personal finance enthusiast. I've made 100s of financial sins and when I decided to get my life together, I started learning about Personal Finance. I've read 100s of Books and have watched hours of videos. Here, I will share my mistakes and learnings with you.

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1 Response

  1. Ganesh Kumar Reddy says:


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