How to Save Money from Salary
Neat tricks on how to save money from salary every month
- Learning how to save money from salary can go a long way in corpus creation.
- Save your monthly salary by investing in investments with fixed lock in like PPF, FD, etc.
- Select schemes where you can invest by providing standing instructions like Mutual Fund SIPs, RD etc.
- Repay your outstanding loans and avoid utilising your entire credit cards limits.
- Minimise unwanted expenses as much as you can.
We can all agree that we all look forward to the salary credit SMS every month. Your job paves the path to financial independence, but how you utilise your salary goes a long way in making you financially secure and self-sufficient. For many people who have just entered the workforce, how to save money from salary can seem to be a challenging proportion. This article is for such youngsters who have just started earning. Read on.
How To Save Money from Your Salary Every Month
After taking care of your essential monthly expenses like house rent, utility bills, etc., you must ensure you create a plan to save your money and build your savings. Here are some neat tricks on how to do savings from salary.
Invest in schemes with fixed lock-in periods
When you have access to more money, you tend to spend more – sometimes on frivolous, invaluable things. But placing your money schemes with a fixed lock-in period encourages you to curb your impulsive expenses and promotes disciplined investments. As such, you can invest in various schemes like Public Provident Fund, 5-year tax-savings Fixed Deposits and Retirement Schemes with fixed lock-in periods each month.
Invest in schemes with fixed instalment amounts
You can put money aside each month by investing in schemes that require fixed monthly instalments for a fixed duration. Such schemes typically come with the standing instruction feature, where funds are debited on a stipulated date each month. Common examples of these investment-cum-savings plans include SIP Mutual Funds and Recurring Deposits with varying tenures.
Manage your credits card debt
Another way how to save money from salary is to use your credit card wisely. Using a credit card may seem exciting at first, but it can quickly put you into a ton of debt. Not paying credit card debt on time can attract interest and eat into your savings. So, ensure you manage your debt prudently.
Do not over-spend on take-out
Eating out at restaurants frequently can put a severe dent in your pocket. Pack your own lunch for work. On days when meal planning seems tiresome, order food via food delivery apps that offer discounts and cashback.
Reduce unnecessary expenses
With online shopping becoming the norm, unnecessary expenses have increased tremendously. A simple way how to save money from salary each month is to manage these expenses. For instance, you can choose one or two OTT platforms for entertainment instead of ten and switch to digital newspapers with low membership fees. Also, avoid getting carried away during online shopping festivals. Check if the deals are truly worth it and if you indeed need the things you are ordering.
So, employ the above tricks on how to save money from salary to grow your savings gradually. Remember, your salary is a result of your hard work. Resourcefully spending money can help you fulfil your financial goals while you enjoy a comfortable lifestyle simultaneously.
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*Disclaimer: This article is for information purposes only. We recommend you get in touch with your income tax advisor or CA for expert advice.