How To Save Money In India

Want to know how to save money in India? Well you have landed on the right article, make sure to read the article carefully to know how to save money at home in India

Imagine what can happen if you were to need money in an emergency, and you do not have enough money. Life is very unpredictable. So, it is extremely important to be prepared for all kinds of uncertainties and emergencies.

Not only in case of any mishap, you never know when your well-settled business stops flourishing or when your investments stop giving handsome returns, owing to market conditions.

Hence, it is absolutely critical that you save money to face any circumstance in life. Monetary stability gives you the strength and courage to face the ups and downs of life with ease.

Saving money helps one to plan for tomorrow and be future-ready. If you have cultivated the habit of saving money from the very beginning of your life, you would never be stressed.

In a country like India, where people love to shop for themselves, family, and relatives, it becomes all the more important to save hard-earned money.

Whether you are a businessman, student, or housewife, you must know how to save money. We have made this task easier by listing the most effective ways of saving money in your daily life.

If you practice these small things, you would be able to save lots. So, read this article for all the valuable tips, it would be worth your time.

How To Save Money In India (2022 Updated)

• Rationale Salary Distribution:  A smart way to save money is to distribute your salary rationally on all the expenses and keep aside a percentage for savings.
  
  For example, you can decide that you will save 5% or 10% of your salary every month. Though this amount may not seem huge at first, gradually it would lead to handsome savings.
  
  One should try to save that portion, come what may! You can also ask the HR department to transfer your salary in two accounts: salary account and savings account. This way, your savings amount would be untouched. Moreover, it would also fetch higher interest in savings accounts.
  
  
• Save Electricity: Another easy way to save money in everyday life is by saving electricity. People who have to pay a whopping amount on their electricity bills every month can save by using electricity cautiously.
  
  We generally have the habit of not switching off the lights of the room while leaving. We also leave the plug points of mobile chargers, television, electrical appliances, etc. on after using them.
  
  They continue to consume electricity. If you become a little careful and act wisely, you can save a significant amount by decreasing your electricity bill.
  
  
• Choosing Savings Account Judiciously: You should do a survey and compare the offers of different banks before opening your savings account. Some banks provide higher interest rates on Savings accounts than others.
  
  The new banks offer interest up to 5% on savings accounts to beat the competition. Explore the rates and select the best offer. Make the Most of the First Day of Sale: Sales are a good way to save money without having to cut down on your needs and wants.
  
  You can satiate your hunger for shopping by making the best use of Sales. You should shop on the first day of the sale, as the stock is plenty, and you would get the required variety. Sale offers many attractive deals and discounts such as ‘buy one, get one free’, gifts, coupons, etc.
  
  Sales serve twin objectives: they help you to save money and shop, both at the same time.
  
  
• Using Credit Cards: Discreet usage of credit cards for shopping also leads to additional savings. If you shop online with credit cards, you get many interesting and beneficial offers.
   
  Online stores tie up with banks and the consumers get rewards for making payments using credit cards of specified banks. The customers can redeem these rewards points on the next purchase.
  
  You should link your credit cards to savings accounts so that dues are cleared without much delay.
  
  
• Planning Vacation Prudently: People love to travel with friends and family. It is of paramount importance to plan your vacations wisely. The choice of the hotel, means of transportation, destination, etc affects your budget and savings.
   
  You should opt for a destination that is relaxing as well as within your budget. You should also compare the packages of different travel companies. Various websites such as OYO help you to compare and analyze hotel room rates. Travel, but plan it meticulously to save money.
  
  
• Get Rid of Intermediaries: You should try to purchase directly from the manufacturer and eliminate the role of intermediaries. Intermediaries charge exorbitant prices after adding their substantial margin. Getting rid of the intermediaries is the best way to save your hard-earned money.
  
  
• Prepare a Monthly Budget: Budgeting is crucial for saving. You should have a monthly budget that outlines all your major expenses. This would help you to identify the fixed expenses that can not be avoided and those expenses that you can cut down and save.
  
  A budget would present before you your statement of expenditures. You can adjust your income towards the necessary overheads and save accordingly.
  
  
• Using Prepaid Mobile Plans: Another way to save is to use a prepaid mobile phone instead of a postpaid mobile. In postpaid mobiles, it is difficult to track how much you have spent. A prepaid service apprises you of your current usage and balance left.
  
  You tend to use it more cautiously. Prepaid mobile plans also help you to save on roaming calls.
  
  
• Use Coupons: If you have any discount coupons, you should avail of them before they expire. Coupons make shopping reasonable for you and result in increased savings. You can apply promo codes that are available using various apps such as Zomato, Uber, etc. to save more.
  
  
• Online-Shopping: Online shopping is yet another fruitful way to save money. Online shopping is advantageous as it offers a myriad of discounts to customers. You can pay using your digital wallets such as Paytm.
  
  PayU and get additional cashback. Several e-commerce websites such as Amazon, Flipkart, etc. have tie-ups with different banks and offer attractive discounts if you pay through net banking, debit cards, or credit cards.
  
  Offer Deals can Lead to Unwanted Purchases: You should be wary of attractive deals, as they lure you to purchase more than you need.
  
  For example, if there is a deal- ‘buy two, get two free’, don't fall for it. If you require only one T-shirt, do not be tempted to buy two to get free T-shirts. This way, you would exceed your budget and would have to cut a sorry figure later.
  
  
• Health Policies Enhance Savings: Health Policies are extremely beneficial as they contribute to reducing medical expenses to a great extent. You should take a health cover for yourself and your family that covers all the major diseases and hospitals.
  
  A carefully chosen health plan leads to savings, as it saves you from paying sky-high medical bills in case of a medical emergency. Save Fuel, Save Money: Saving fuel is equivalent to saving money. You should pool cars or opt for public transport for commuting.
  
  This would not only save your money, but also protect the environment.
  
  
• Prepare a Shopping List: One is bound to buy more if you don't have a shopping list. A shopping list enumerating the items you have to buy would restrict your shopping to essential items and help you save more.
  
  
• Investment Diversification: As it is said, do not put all your eggs in one basket- you should diversify your investments and balance them well. There are a plethora of investment avenues serving varied needs.
   
  For example, equity investment gives high returns but has high risk too, whereas investment in bonds is safe but yields moderate returns. You should have a perfect blend of various kinds of investments so that you get a steady income and amplify your savings.
  
  
• Prefer Eating Home-Cooked Food: If you want to save your money, you should avoid eating out in restaurants. Home-cooked food is not only healthy and nutritious, but also contributes to saving money.
  
  
• Reduce Income-Tax Liability: It is a wonderful method to save money. You can invest your income in various tax-saving schemes. Investment under Section 80C, 80D, 80E etc. is tax-exempted. They not only reduce your tax liability, but also yield good returns.
  
  So, it leads to a double increase in savings.
  
  
• Stay Away from Debts: A prudent man should avoid debts as they come with interest liability. Using credit cards and EMI options blatantly would increase the burden. You should try to use debit cards as much as possible.
  
  
• Use ATMs Wisely: As you all must be knowing, ATM transactions are not free. If you do more than five ATM transactions in a month, you have to pay extra fees per transaction. But, you can avoid these fees if you operate from your own bank.
   
  For example, if you have an ATM card from Bank of Baroda, you can do as many transactions as you wish without paying any extra fees. All you have to remember is that all these transactions should be made from Bank of Baroda ATM only, and not any other bank’s ATM.
  
  
• Abstain from Drugs and Addiction: If you are addicted to something alcohol, cigarettes, or drugs, you are likely to spend your hard-earned money on the same. People with addiction issues can go to any heights to fulfil their cravings. So, try and stay away from any kind of addiction.
  
  
• Spend on Cosmetics Prudently: It is essential to look good, as it boosts your confidence. But there are many cosmetic products that you do not need or might not suit your skin. Always buy small trial packs first to ensure they suit your skin and body.
  
  Too much expenditure on cosmetics is also a waste of money.
  
  
• Bargain and Save: In India, you can save a lot if you know the art of bargaining. Bargaining with local sellers in markets could prove to be highly cost-effective.
  
  
• Personal Hygiene: Personal hygiene is of utmost importance to avoid skin diseases and problems. If you take care of your body, you would not have to spend on doctor’s fees and medicines.
  
  
• Opt for DTH Plans: Using DTH plans that enable you to watch channels according to your wish also saves money. If you take an all-channels pack, it would be costly in comparison to DTH plans. Hence, go for DTH plans and save more.
  
  
• Join Free Activities: As the popular saying goes-an empty mind is a devil’s workshop. If you are free, you tend to indulge in futile activities such as shopping, clubbing, etc. and spend more.
  
  Instead, you should join free activity courses such as dance classes, cooking classes to engage yourself. Several institutes hold promotional free classes. You can join these to hone your skills and keep excess expenditure at bay.
  
  
• Rent Minimization: It is not wise to spend more on rent as it would hamper your savings for the future. You should try to find a cheaper place to stay and save on your rental expenses.
  
  
• Manage Personal Finance: You should assess your incomes and expenditures and manage your finances to increase your savings.
  
  
• Socialize, but Sensibly: While socializing with friends and family, do not be a spendthrift. Organizing house parties instead of going to high-profile restaurants would lead to more savings.
  
  
• Book Travel Tickets Beforehand: If you are planning to travel, you should book your tickets and hotels in advance to save money. If you book them late, you would have to pay more.
  
  
• Reserve-Funds: You should make provision for any kind of emergency or opportunity. You should have sufficient liquidity to meet any contingency.
  
  
• Move Outdoors: Plan picnics and head outdoors to relax and rejuvenate yourself. This would also help you to save lots.
  
  
• Scholarships: Scholarships help meritorious students save money. They also encourage you to perform better.
  
  
• Immediate Payment of Bills: You should pay your mobile bills, electricity bills, water bills, etc. immediately so that you do not forget. Timely payment of bills will save you from paying hefty penalties.
  
  
• Loyalty Programs: Loyalty programs offered by various brands are also an effective way to save money.
  
  
• Delegate household work: You can save a lot of money if you divide the house-hold work among yourselves and reduce the number of domestic helpers.
  
  
• Do Not Waste Food: There are thousands of people in India who die of hunger and malnutrition. You should not waste food as it also leads to wastage of money.
  
  
• Undertake Pest Control: Pests damage your house and furniture, which might incur heavy expenditure. Proper pest control would save you from such expenses.
  
  
• Family Health Insurance: Family health insurance plans help you in the long run as medical emergencies are a part of your life. They also lead to savings as they curtail your medical bills significantly.
  
  
• Home Maintenance: You can save a lot of money if you keep your house in order and maintain it to avoid spending on repairs.
  
  
• Refrain from taking Minor Credit: You should not develop a habit of taking minor credit from vegetable vendors, tobacco vendors, etc. You tend to over-consume and over-purchase on credit that you have to repay later.
  
  
• Tutor Your Child: You should try to teach your child yourself instead of hiring a tuition teacher. This is an efficacious way of saving money.
  
  
• Paying Off Liabilities: To save money, you should pay off your loans as soon as possible. This would reduce the interest burden and save tons of money.