HOW TO SAVE MONEY FROM LOW SALARY

How Much of Your Paycheck Should You Save? | Chime Make a Monthly Budget Plan and Track Your Finances

It's all about keeping track of where your money goes and managing your spending if you want to save money. Make a monthly budget plan and stick to it by separating your spending into key areas. To begin, keep track of the amount that is credited to your account each month. Next, make a list of your expenses and divide them into two categories: fixed and variable. You can include rent, bills, basic food, and other fixed expenses in this category. You may include purchases that don't reoccur every month in the variable category, such as eating out, vacations, and so on.

Get Rid of Your Debts.

Debt is the ultimate destroyer of all hopes of saving. You're in danger if you owe money to the bank. Pay off your debt first, and if you have credit cards, don't use them excessively. In fact, it's preferable not to use them at all.

Cutting down on monthly expenses

You can cut down your monthly expenses in many ways, like lowering the expenses, credit card spending, electricity, mobile recharges, entertainment expenses, avoiding outside food, prudent grocery shopping, transportation, etc.

By saving a few bucks from each category, you can actually save a lot of money.

Start investing your savings

Just saving money will not help in any way until you invest it in the right asset class. If you are just saving and not investing, then your money is losing its value with time.

So, investing becomes the most important part of your savings. In investing, the most critical factor is time. You need to start investing as soon as possible.

You can also start your saving and investing journey with just Rs 500 also. The idea is to start early, even with a small amount of money.

Cancel unused subscription

You might have taken subscriptions from different websites like Amazon Prime, etc., but you are not using those monthly.

So, you can cancel all your unused subscriptions and save a couple of bucks every month.

Health Insurance

A question may arise in your mind. How is it possible to save money by buying a health insurance policy, when you have to pay a premium every year?

The answer is, it is better to spend, say, Rs 12,000 per year on a premium for a health policy, rather than paying a large amount of money on unexpected hospitalization.

Diseases and accidents come without an invitation. You may save a few lakh on hospital expenses in case of emergency. Besides, you can take this cover not only for you but add your spouse too.

For example, Average Indian working class spends Rs 1,500 per month on healthcare (including accidents) as per various reports in the media. So, Rs 1,500 the amount spend every month, Rs 1,000 being the premium. You are likely to save Rs 500 per month.

Savings from a health insurance is eminent and helpful in times of need.

Telephone bill.

One can save a huge amount by prudently using their telephone plan.

This can be to achieve by selecting monthly recharge plan wisely.

One through post-paid.

For instance, if you have WI-FI both at your home and at the place of work, then it will be better if you go for a plan with fewer data. This will cost you less as well.

However, almost all the telecom players offer similar plans. It is in the benefits offered, signal strength and call/data quality that should be considered before your choice.