Table of Content
How Much of Your Salary Should You Save Every Month?
The general rule of thumb that you can strive for with your monthly salary is 50% for living expenses, 30% for lifestyle expenses, and 20% for savings.
How To Save Money From Salary?
Make a monthly budget plan
Saving money is all about keeping track of where your money is going and controlling your expenses. Make a monthly budget plan by dividing your expenses into major categories and stick to it. The budget will help you avoid overspending, and that means you will have more money to save.
Cut down on your monthly expenses
You cannot do without the following, but you can definitely find ways to lower the expenses.
- Mobile recharges
- Smart online shopping
- Prudent grocery shopping
- Entertainment expenses
- Electricity bill
- Outside food orders
- redit card spending
- Drinking & smoking expenses
Save & invest in the right savings tool
Depending on your financial goals, put your money away in a tool that allows you to save and invest for better returns. Some of the options are:
Say NO to debt
The idea is to save and earn interest on it. So, don’t take on new debt unless you have a good enough reason.
Save your salary increases or bonuses
Anytime you get a raise, incentive or bonus, it’s tempting to use it to reward yourself. Lifestyle creep is a real thing! Isn’t it? Just because you make more doesn’t mean you have to spend more! Fight the temptation and put the extra money straight into savings.
Pay your EMIs on time to avoid penalty fees
If you have an ongoing loan or credit card payments, make sure you don’t fail to make the monthly repayments. Missed or delayed payments mean late fees or penalties, which can take a significant amount from your salary and harm your saving potential. So, avoid late payments; consider setting up automatic payments to be taken out from your bank account every month.