Quick Summary
Learning how to save money is an essential life skill that can help you build financial security, reduce stress, and create a better future. Whether you’re looking for clever ways to save money daily or want to know how to save money from salary, this guide covers everything you need. Read on for practical advice, expert-backed strategies, and the best ways to save money consistently. With real-life Indian examples and context, this guide is tailored to help you take actionable steps.
By developing these habits, you’ll protect yourself from financial uncertainty and create opportunities to build wealth. In this guide, we’ll cover how to save money, the best savings schemes in India, and the difference between saving and investing.
Saving money from your salary in 2025 requires smart planning and disciplined budgeting. You can build financial security by following effective strategies like the 50/30/20 rule, automating savings, and cutting unnecessary expenses.
Wondering how to save money from a salary calculator to plan your budget effectively? By following innovative strategies like the 50/30/20 rule, automating savings, and reducing unnecessary expenses, you can maximize your savings in 2025. Let’s explore the seven best ways to grow your wealth effortlessly.
This guide covers the seven best ways to maximize savings and grow wealth effortlessly.
Saving involves putting aside a part of your income rather than spending it immediately. By saving, you create a financial safety net for future needs or emergencies. It aids in reaching financial objectives, such as purchasing a home, paying for education, or enjoying a comfortable retirement while providing security against unforeseen expenses.
Various savings schemes are designed to help individuals save money whilst growing their wealth and minimizing risks. Let’s explore some popular options.
The PPF is a long-term savings scheme backed by the government of India. It offers tax benefits and a guaranteed return. The lock-in period is 15 years, and the interest earned is tax-free.
EPF is a mandatory savings scheme for salaried employees, to which both the employee and employer contribute. It’s primarily aimed at providing retirement benefits.
NPS is a government-sponsored pension scheme that helps people save for long-term retirement. It offers tax benefits and allows investments in equity, debt, and government securities.
POMIS is a risk-free investment option that provides a fixed monthly income. It is ideal for conservative investors and a popular choice for people looking for a regular income after retirement.
This scheme encourages savings for the girl child’s education and marriage. It offers a high interest rate and tax benefits, making it one of the best savings schemes for parents.
Fixed deposits (FDs) are a traditional and safe way to save money in India. They offer guaranteed returns over a fixed period and are available through banks and post offices.
Creating a budget is the foundation of financial planning. List all income sources, such as salary, rental, or freelance work. Then, break down your expenses into categories: rent, groceries, EMIs, school fees, and travel.
Follow the 50/30/20 rule:
If this doesn’t suit your needs, try the envelope method: allocate cash into separate envelopes for categories like “vegetables,” “petrol,” and “school fees.” It’s a visual and effective way many Indian households already practice without naming it.
Popular Indian apps like Walnut, Money View, and ET Money automatically track your expenses via SMS and bank alerts. These tools help you visualize where your money is going and are excellent for anyone wondering how to save money from salary with limited time.
Saving for specific goals makes it easier to stay committed. Are you saving for a wedding, a home loan down payment, or a trip to Manali? Break down the amount needed and divide it over months. For example, if you save ₹1,20,000 for a vacation in 12 months, set aside ₹10,000 monthly.
To automate the process, use a savings calculator or divide your target using a SIP (Systematic Investment Plan) in a mutual fund.
If you’re a student or entry-level professional, saving ₹500–₹1,000 a month is a great start. Skip Swiggy/Zomato orders twice a week and cook at home instead. Use apps like Dineout or Zomato Gold for discounts when dining out. These are real, clever ways to save money without compromising your lifestyle.
| Pros | Cons |
| Provides financial security | Low returns compared to investments |
| Reduces financial stress in emergencies | May not beat inflation |
| Encourages discipline | Funds may be locked for a long time in certain schemes |
Use a notebook, Excel sheet, or apps to track all expenses—from your morning chai to Ola rides. Understanding your spending pattern helps you make better decisions about how to save money for future needs.
Create a “Gullak” or digital piggy bank. Apps like Jar and Fi round up your daily spends and invest the spare change in gold or mutual funds. This approach shows how to save money for future goals passively.
Choose banks like IDFC First Bank, AU Small Finance Bank, or SBI’s Insta Plus Savings Account that offer 4–7% interest—higher than regular savings accounts. This is one of the best ways to save money and let your idle cash work for you.
Set up standing instructions with your bank to auto-transfer a portion of your salary to your savings account or RD (Recurring Deposit). If you’re a salaried professional, this is one of the smartest answers to how to save money from salary without effort.
Credit card debts in India can charge up to 36–40% annually. Pay more than the minimum balance and consolidate loans using a personal loan at lower interest. Use balance transfer options provided by banks like HDFC or ICICI.
Use the moratorium period wisely and pay interest if possible. Once employed, consider prepaying your education loan through bonuses or side gigs. Explore subsidies under schemes like Dr. Ambedkar Central Sector Scheme for interest waiver.
Refinancing could reduce your EMI significantly if you took a home loan at 9%, and rates are now 7.5%. Use online EMI calculators or consult banks like SBI, LIC Housing, or HDFC. Refinancing is a clever way to save money in the long term.
Use apps like BigBasket, Jiomart, or DMart Ready to compare prices. Buy monthly essentials like rice, pulses, and cooking oil in bulk. Stick to your shopping list and avoid impulse buys like chips or fizzy drinks.
Do you need Netflix, Hotstar, AND Amazon Prime? Consider sharing accounts with family under multi-user plans. Check if your OTT subscriptions are bundled if you’re using JioFiber or Airtel Xstream. It’s one of the simplest ways to save money monthly.
If your usage is minimal, switch to prepaid from postpaid. Companies like Jio and Airtel offer affordable recharge plans under ₹300/month. Avoid unnecessary top-ups and caller tunes.
Use energy-efficient appliances with a 5-star BEE rating. Turn off appliances at the plug point and switch to LED lights. Use ceiling fans in hot regions like Rajasthan or Chennai before turning on the AC.
Many people forget about subscriptions like Gaana Plus or the Times of India e-paper. Review your Paytm, or UPI auto-debits every quarter and cancel non-essentials.
Wait for Amazon Great Indian Festival, Flipkart Big Billion Days, or end-of-season sales before buying electronics or clothing. Another smart move is to buy off-season (like blankets in March).
Before buying that ₹5,000 smartwatch or ₹2,000 kurti, wait 30 days. Often, you’ll realize you don’t need it. It’s a powerful way to cut emotional spending.
Uninstall shopping apps like Myntra or Flipkart during “no-spend” months. Remove saved cards from payment gateways to shorten the checkout process—this discourages impulse buying.
Buy detergent, soap, and toilet paper in bulk from wholesalers like Metro Cash & Carry or local Kirana shops. These purchases are smart, long-term ways for middle-class households to save money.
Look for thrift pages on Instagram or buy second-hand furniture from OLX or Quikr. This is especially helpful for students and young professionals moving to metros like Bangalore or Pune.
Instead of cabs, use public transport, such as BMTC buses in Bangalore or Delhi Metro. Carpool via apps like Quick Ride. Maintain tire pressure and get regular oil checks to increase fuel efficiency.
Combine errands to avoid multiple short trips. Use fuel price tracking apps like Fuel@IOC to find cheaper petrol pumps nearby. Avoid aggressive acceleration, which reduces mileage.
If you don’t drive daily, use Zoomcar, Revv, or Myles for weekend trips instead of owning a car. It eliminates costs like insurance, servicing, and EMI.
Investing uses cash to purchase assets expected to increase in value over time. It offers higher returns than savings but also involves more risk. Save wealth to build a foundation for investing and manage financial risks effectively.
Investing involves strategically allocating money to assets to grow wealth over time. Individuals can maximize returns by setting clear financial goals, selecting appropriate investment vehicles, assessing risk tolerance, and building a diversified portfolio while minimizing risk and saving money. Regularly monitoring and adjusting the portfolio ensures it aligns with evolving financial objectives.
Clearly define your financial goals, whether saving for retirement, buying a home, or growing your wealth.
Select the appropriate investment options based on your goals, such as stocks, bonds, or mutual funds.
Determine a comfortable amount to invest regularly while considering your financial commitments.
Understand how much risk you are willing to take. Younger investors may opt for higher-risk options like equities, while conservative investors prefer bonds.
Decide if you want to be an active investor managing your portfolio or a passive investor relying on professionals.
Create a diversified portfolio that balances risk and return, depending on your goals and time horizon.
Regularly review your investments and make adjustments to align with your goals.
| Pros | Cons |
| Potential for high returns | Risk of losing money |
| Beats inflation | Market volatility |
| Builds long-term wealth | Requires knowledge and time |
| Saving | Investing |
| Low risk, low return | Higher risk, higher return |
| Suitable for short-term goals | Suitable for long-term wealth-building |
There are countless ways to save money if you plan and make conscious decisions. Whether you’re learning how to save money from your salary or exploring clever ways to save money during everyday activities, adopting these habits will create long-lasting financial benefits.
Start with one or two strategies, stay consistent, and review your progress monthly. The best way to save money is not about earning more—it’s about spending wisely. Your future self will thank you.
Mastering how to save money is not a one-time effort—it’s a lifelong discipline that becomes easier with consistent practice. By tailoring your habits to fit your lifestyle and incorporating tools and strategies relevant to your financial situation, especially in the Indian context, you can gain better control over your finances. Start with small, achievable goals and keep building on them. Remember, saving money isn’t about depriving yourself—it’s about making smarter choices that bring lasting rewards. Whether you aim to save money from salary, reduce daily expenses, or prepare for the future, the journey starts today—with one smart decision at a time.
By familiarizing yourself with the top savings options in India and recognizing the different purposes of saving and investing, you can work towards financial independence and confidently chase your long-term aspirations.
The 50/30/20 rule is a simple budgeting strategy: allocate 50% of your income to needs (housing, bills, etc.), 30% to wants (entertainment, dining out), and 20% to savings and debt repayment. It helps create a balanced approach to managing finances while prioritizing essentials and future goals.
A salary of 70k per month is good in India, depending on location and lifestyle. In smaller cities, it offers a comfortable standard of living, covering essentials, leisure, and savings. However, higher living costs might require more careful budgeting in metros like Mumbai or Delhi.
To save 1 lakh in 6 months:
1. Set a monthly savings target: ₹16,667 per month.
2. Cut unnecessary expenses (e.g., dining out).
3. Prioritize needs over wants.
4. Automate savings through direct transfers to a separate account.
5. Find extra income sources like freelancing or part-time work.
Saving 50% of your income is an excellent financial goal, as it accelerates wealth-building and helps you achieve long-term financial independence faster. However, it requires discipline and a careful balance between saving, spending, and living comfortably.
The “salary rule” often refers to guidelines for managing your earnings effectively. A common one is the 50/30/20 rule: allocate 50% to necessities, 30% to wants, and 20% to savings or debt repayment. It helps maintain a balanced budget, ensuring financial stability while enjoying life.
The 70/20/10 rule is a budgeting method that divides income into three parts: 70% for needs and wants (rent, groceries, lifestyle expenses), 20% for savings and investments (retirement, emergency fund), and 10% for debt repayment or charity. This strategy helps maintain financial balance while securing future stability.
To save money from your salary, follow the 50/30/20 rule: allocate 50% for needs, 30% for wants, and save or invest 20%. Automate savings by setting up a recurring transfer to a savings or investment account. Reduce unnecessary expenses and track your spending to stay within budget.
The five steps in savings are:
Set a Goal – Define a clear savings goal (e.g., emergency fund, vacation, or investment).
Create a Budget – Track income and expenses to allocate a portion for savings.
Reduce Unnecessary Expenses – Cut down on non-essential spending to save more.
Automate Savings – Set up automatic transfers to a savings or investment account.
Monitor and Adjust – Regularly review and adjust your savings plan to stay on track.
To budget your salary, follow these steps:
Track Income & Expenses – List your total income and monthly expenses.
Follow the 50/30/20 Rule – Allocate 50% for needs, 30% for wants, and 20% for savings/investments.
Cut Unnecessary Expenses – Reduce spending on non-essentials to save more.
Automate Savings – Set up automatic transfers to a savings or investment account.
Review & Adjust – Regularly check your budget and make changes as needed.
To balance your salary effectively, follow these steps:
Track Your Income & Expenses – List all sources of income and monthly expenses.
Follow the 50/30/20 Rule – Use 50% for needs, 30% for wants, and 20% for savings or debt repayment.
Prioritise Essential Spending – First, cover necessities like rent, bills, and groceries.
Limit Unnecessary Expenses – Cut back on non-essential spending to save more.
Automate Savings & Investments – Set up automatic transfers to ensure consistent financial growth.
Review & Adjust Regularly – Monitor your budget and make changes as needed.
Authored by, Amay Mathur | Senior Editor
Amay Mathur is a business news reporter at Chegg.com. He previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. His areas of coverage encompass tech, business, strategy, finance, and even space. He is a Columbia University graduate.
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Chegg India does not ask for money to offer any opportunity with the company. We request you to be vigilant before sharing your personal and financial information with any third party. Beware of fraudulent activities claiming affiliation with our company and promising monetary rewards or benefits. Chegg India shall not be responsible for any losses resulting from such activities.
