How to Save Money on Salary in India?

When it comes to deciding how to save money, salary is by far the most fundamental thing to consider. A basic rule of thumb to aim for with your salary every month is to set aside 50% for living expenditures, 30% for lifestyle spending, and 20% for saving. However, this guideline should not be taken into account for personal objectives as it will take a long time to make all this possible. For short-term aspirations, such as holidays, long-term ones, such as house, car or retirement plan can’t be adjusted in 20% savings.

Establishing a savings strategy that works for both short and long-term savings plans necessitates some rule changes. Instead of spending 50% of income on living expenditures, consider cutting it to 30% and instead of spending 30% on lifestyle expenses, cutting it to 25% of the income per month. Such a method demands dedication and meticulous assessments, but it will undoubtedly help to reach financial objectives fast.

How to Save Money from Salary In India

Create a monthly spending plan

Create a monthly spending plan

There is always a question in mind on how to save money from salary every month. The simple answer is money management, which is all about monitoring where the money actually goes and exercising control over expenses. Prepare a monthly plan by categorising your spending and sticking to the plan. The budget will assist in avoiding overspending, allowing you to save money.

Reduce your monthly spending

If you want to know how to do savings from salary, here are the things that you can do in a smart way to save money on every spend. You cannot live without the essentials, but you can certainly find methods to save money on essential things such as:

  • Grocery shopping
  • Online Shopping
  • Subscriptions
  • Electricity Bills
  • Mobile Recharges
  • Credit card spending
  • Transportation
  • Entertainment expenses
  • Smoking and Drinking expenses

Save and Invest

Just saving money from your salary is not the only thing you should be focusing on. It should be invested for better growth. Invest your money in instruments that allow you to get good returns and grow your money, based on the financial goals. Among the alternatives are:

  • Mutual Funds
  • Liquid Funds
  • Emergency Funds
  • Digital gold 
  • Corporate Bonds

Smart online shopping

Smart online shopping

An average Indian always thinks about how to save money each month from salary in India. A major part of the salary is spent on shopping which, if done wisely, can save a lot of money. In recent years, a variety of websites and mobile apps have emerged which help in smart shopping. Portals like CashKaro provide deals for every type of product from 1,500+ websites including e-commerce giants such as Amazon, Reliance Digital, TataCLiQ and also provides additional cashback on your purchases. This smart shopping method might provide the same goods at a lower cost.

  • Use payment wallets like PhonePe, Google Pay, Paytm, and more to get additional discounts or rewards. Use debit cards, credit cards, or UPI which offer discounts.
  • Check to see whether your order qualifies for free delivery. If not, put your purchase on hold and wait until you have it. Delivery charges, in addition to taxes, might increase your final product cost.
  • You may still save a lot of money by purchasing fewer but higher-quality items and repurposing your existing collection.

Avail a bonus of Rs 60 by signing up on the Cashkaro app and enjoy exciting discounts and Cashback on every purchase.

Save money on Food

Meals are among the most prominent areas of concern in the regular Indian household’s budget. 

Avoid Dining Out: Dining out may seem like a pleasure and a major time saver for some, but the cost can be exorbitant. Dining out frequently increases unnecessary expenses. By dining at home, you can save money that would otherwise be spent on necessary things.

Limit Eating Out: Eating out is unavoidable. You, on the other hand, can set a limit on it. Set aside time for dining once or twice a month and budget for it. And completely stick to the rule of not exceeding them.

Cook your own food: It will take a couple of minutes out of the morning and evening or morning, but it will save a lot of money at the end of the month.

Cut entertainment costs

Usually, people think of leisure as the first item to cut when attempting to save money, but they frequently overlook the daily expenses that progressively destroy their monthly salary.

Because entertainment is an important aspect of life, it can’t be avoided. But, cutting down unnecessary parts of the entertainment budget will save money. Here are a few examples of wasteful spending in this area:

Quit memberships: It is tough to stay consistent in gyms, swimming, Zumba dancing, or other sporting activities when you have a hectic job schedule. If you use your memberships once or twice a month, you’re probably wasting money.

Cancel Cable Connection: With the introduction of internet streaming platforms such as Netflix, Amazon Prime, Zee5, SonyLIV, Hotstar services, people hardly watch episodes through a wired connection. So, if you’re not using a cable, get rid of that as well. You may only subscribe to only the platforms you watch.

Cancel any other subscriptions you don’t use, such as newspapers and magazines.

To save late fees, pay EMIs with punctuality

To save late fees, pay EMIs with punctuality

If you already have a credit card commitment or an ongoing loan, commit to making your monthly instalments on time. Delayed or missed instalments result in penalties or late fees, which can deduct a large amount from your earnings and reduce your ability to save.

Save Raises or Bonuses

It’s natural to utilise an incentive, raise, or bonus to celebrate whenever you get one. That’s how a common man does without financial intelligence. But, you don’t have to increase your spending just because you earn more. Resist the urge to spend the extra income and instead put it into savings.

Avoid Loans

The concept is to save/ invest money and earn interest on it. So, unless you have a solid reason, avoid taking a loan. Loans come with much higher interest rates which is one of the biggest enemies of savings. Avoiding loans on unnecessary things could save a lot of money. Instead you can use Dhani promo codes to avail best & instant loan without interest.

Quit Bad Habits

Quit Bad Habits

Any bad habit, like smoking or consumption of alcohol, can cause a huge loss in salary and it also invites various kinds of diseases, as a result of which it absorbs hard-earned money and savings. You can completely avoid these unhealthy habits as soon as possible. This will not only save money on salary but will also save you from health hazards.

Other Money Saving Ideas:

How To Save Money

How To Save Money App

How To Save Money Through App

How To Save Money For Students In India

Save Money On Groceries


The article guides you on how to save money from salary every month for achieving short and long-term goals. The final conclusion is that your savings from salary and your investment will decide how effective you are in stopping the inflation demon from taking your money. So, spend smartly to save money from your salary each month and achieve the short and long term goals along with combating inflation impact.

Abhishek Kumar
Abhishek Kumar

Abhishek is a graduate in Journalism and Mass Communication. He has worked with several organizations as a Journalist, Content Developer, Fact-checker and Photojournalist. He has a keen interest in fact-checking. When not writing or analysing web content, he spends time doing research and fact-checks to combat misinformation/disinformation on the internet. Abhishek has joined us as a Content Analyst with a positive outlook for Indian e-commerce buyers.

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