10 Effective Strategies To Save More Money From Your Monthly Salary

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Grip Invest
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May 31, 2024
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    Many young professionals struggle to save money. Between eating out, unused gym memberships, and impulse purchases, it's easy to see how your salary can disappear. In this blog post, we will cover 10 simple and practicable ways to save money from salary.

    These are some effective money management tips that you can use to save money from salary.

    As a golden rule, one should follow the 50-30-20 rule. Simply put, 50% of your salary should go to your necessary expenses or needs, 30% to your wants or luxuries, and 20% to your savings and investments. Following this religiously might help you alleviate your financial stress in the long run. Necessary expenses or needs should include inevitable expenses like rent, food, medicines, etc. Wants and luxuries can be anything from a cup of coffee from your favourite high-end cafe to an exotic vacation. Savings and investments include the money you keep aside for emergencies in fixed income assets or your rainy day corpus and your short-term and long-term investments to make your money grow to be able to fulfil short and long-term financial goals.

    For young professionals, saving and investing more at an early age is desirable when financial burdens are relatively low, and you have more time to make your money work. This post will thus focus more on how to save money from salary every month.

    In the following section, we will look at 10 ways to save money as a salaried individual.

    Let's get started!

    10 Ways A Salaried Individual Can Save Money

    Instead of focusing on complex financial calculations and manoeuvring, you can start saving by simply inculcating certain simple behavioural changes that will go a long way in your financial journey.

    • Unleash Your Inner Chef: Food takes up a significant of your earnings, and it often goes unnoticed. In this age of food delivery apps making it all the more easier to order from restaurants and cafes, instant gratification from ordering your favourite (expensive!) dish is highly impulsive. Restaurants lure you in with their unique offerings, but the truth is, you can often recreate those dishes at home for a fraction of the cost. The internet is a treasure trove of recipes, allowing you to explore cuisines worldwide. Plus, home-cooked meals are generally healthier.
    • Sticking To Unused Gym Memberships: Gyms thrive on New Year's resolutions. Don't be another statistic! Before signing up for a membership, assess your commitment. If regularly hitting the gym feels like a chore, you are better off saving money. Consider free alternatives like running, bodyweight exercises, or following workout videos online. Practising meditation and yoga exercises is always an option to keep your mind and body healthy. Your need to save money should in no way interfere with a healthy, affordable lifestyle. However, if you are not going to use something you have paid a wad of cash, it is better to explore the alternatives.
    • Carpooling: Carpooling is famous in countries like Japan and is slowly gaining precedence in India. Many companies provide cab facilities to their employees for a nominal fee. For those of you who do not have the option to avail transport, you can always pool in with someone who lives near your house or use a shared taxi. Carpooling is an eco-friendly and budget-friendly way to commute. Even carpooling a few days a week can make a significant difference.Public transport like buses, metros, or trains are usually much cheaper than hiring a cab and have proven environmental benefits.
    • Be Mindful Of Your Grocery Bill: When you enter a supermarket, you may get carried away and buy things you may not need. Supermarkets are designed to tempt you into impulse buys. Those strategically placed candy displays and eye-catching new products are marketing tactics. Create a grocery list and stick to it. This will help you avoid unnecessary spending and keep your grocery bill in check.
      The chocolates kept next to the billing counter are just a way to buy sweet treats while you are billing impulsively. You can afford to do it occasionally but save significantly if you are mindful of your grocery budget! It is always a good idea to keep an eye on discount offers and wait for your purchases at a discounted price. 
    • Shop During Discounts: The internet brings us a world of possibilities. There is always an online store or an outlet with a clearance, festival, or New Year's sale. Often, you will find decent products with heavy discounts. Plan your purchases around these sales events to score significant savings. Shopping during discounts can help you save money from salary every month. These days, you can also get discounts on food and grocery shopping from marketplace e-commerce applications.Saving up to buy your favourite mobile phone during a festive sale is always a good idea and a great way to treat yourself to the sweet joy of delayed gratification.
    • Insure Yourself For Peace Of Mind: Car and health insurance might seem like an expense, but they are essential safeguards against unforeseen events. Imagine the financial burden of a car accident or unexpected medical emergency without insurance. With these policies in place, you'll be financially protected in case of misfortune. You can also explore insurance schemes the government offers at very low premiums.
    • Your House Is A Money-Wasting Fountain: Wasting water and electricity can drain your wallet. Be mindful of your water usage – every drop counts! Turn off lights and electronics when not in use. Simple changes in your daily habits can lead to significant cost savings on your utility bills. Think about how often you have switched the light and air conditioner on and left for work. These actions are not just heavy on your wallet but also on the environment. You can also reduce your telephone, internet, and entertainment bills by availing of family plans, which you can share with your family members or friends.
    • If You Don't Need It, Sell It: Chances are, you have unused items around your house – clothes you never wear, old gadgets collecting dust. These items are in relatively good condition, but you do not need or use them. Why not sell them and make an extra buck? Online platforms like OLX, eBay and even Amazon allow you to sell pre-owned items. You can also donate unwanted items in good condition, helping those in need.
    • Invest Wisely And Save On Taxes: Taxes take away a big chunk of your salary every month. But now, there are various tax-saving instruments through which you can save a portion of your tax, like the National Savings Certificate or NSC (Section 80C of the Income Tax Act, 1961) and Public Provident Fund or PPF schemes (PPF deposits are deductible under Section 80C of the Income Tax Act), through which you can save tax. You can also invest in ELSS mutual funds that help you save big on taxes from investments.
    • Reduce Bad Habits: Ditching bad habits that you have always wanted to leave is a great way to save money from your salary. Cigarettes, alcohol, or even going on a shopping spree, your everyday habits can take a toll on your finances. It is always a good idea to reduce, if not ditch, your bad habits. Besides saving you a lot, this will help you live a healthy life.

    Wrapping It Up

    Saving money is a journey, not a destination. These 10 ways to save money can be the beginning for you to take control of your finances. Remember, saving does not mean depriving yourself of all fun—budget for occasional splurges and experiences with friends and family. But by incorporating these smart strategies, you will be well on your way to financial security and achieving your savings goals.

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