As someone once said, “He who buys what he does not need steals from himself”. Saving is an art; one learns to master it with time, but you don’t have to wait.
You can know how to save right now! Here is the best way to save money in India and learn from others so you don’t spend more than you need to.
1. Save money by budgeting
Budgeting your expenses is the most underrated yet obvious way to save money in India or elsewhere. By calculating your spending and where you are, you can find your monthly costs and check whether they fall within your income bracket.
Budgeting can help you understand where you are overspending, how to cut back on your expenses, and whether there is a leak in your budget, for example, a TATA Sky subscription you no longer use but are being charged for it every year.
Take out your bank statement, assess where you are spending most of your money, and start budgeting. You don’t have to cut down on all your luxuries, but you can eliminate the ones you no longer need or enjoy!
2. Save money by shopping online
Another best way to save money in India is to reap the benefits of digitalization and online shopping. Most brands offer great discounts and offers on items online to attract customers and retain them for the long run.
For example, check different online shopping sites if you want to buy a TV. Figure out the best price by comparing it with various portals. You can also use this practice to book trips, hotels, and flights and easily save money in India.
3. Save money by using public transportation
Another way to save money in India is to use public transportation! India’s metro cities are well-connected, and the availability of public transport helps Indians save money easily.
This practice is not only good for your pocket but the environment. If you travel by private cabs to your office or college, switch to local trains, metro, or buses.
If you use your car for daily commuting, look for carpooling with your co-workers or friends. This is a cost-effective way to save money on daily commutes for you and your colleagues.
4. Save money by avoiding lifestyle inflation
Most people fall victim to lifestyle inflation around the world. If you have increased your spending with an increase in your salary, you are a victim of lifestyle inflation.
It is a phenomenon wherein people’s wants increase with a rise in their incomes. It’s easy to fall prey to this phenomenon because most people are unaware; a yearly bonus spent on a spontaneous trip or buying a new iPhone as soon as you receive your salary are some examples of lifestyle inflation.
Try to be conscious of your expenses and not spend your increment on luxuries or wants. Instead, try to save and invest it to make the most of your savings in the long run.
5. Save money by investing
Shockingly enough, only 2% of the Indian population is an investor in the stock market. Most Indians are averse to investing and miss out on an opportunity to create a rich corpus for themselves.
But the scenario is changing; more and more people understand the benefits of saving and investing through social media. The opportunity to start investing as low as Rs. 100 or Rs. 500 has opened doors for people with no substantial disposable income but who wish to start soon and be regular.
Make the most of this finance trend in India; invest wisely and consistently so that you can save money on long-term goals like a house, your child’s education, or an international trip!
Explore SIP as an investment method and start saving Rs. 1000 every month in your chosen fund, ETF, or stock. You can also consult a financial advisor if you are new to investing and require expert guidance!
6. Saving money by creating passive income
Saving money also requires creating different income sources, so you do not have to rely on one source. This is a tremendous savings tip because it protects you in times of recession and job loss.
Some ways to create passive income would be to invest in stocks that provide dividends to their stakeholders or skill-up to sell services like consultancy on jobs.
7. Saving money by reducing your debt
Another way to save money in India is to work towards reducing your debt to a manageable amount within your income. Try not to purchase too many items on EMI, no matter how attractive the monthly cost may be.
Please avoid using your credit card for every purchase and limit your monthly expenses so you don’t create a mountain of debt without realizing it.
You can use these tips and the best ways to save money in India to build a sustainable lifestyle. Avoid overindulging, and try to understand your cash flow so that you can save your hard-earned money.
