How to Save Money in India
Isn’t it true that “money saved is money earned”? Nobody wants to lose money they’ve worked hard for. It is quite easy to spend or lose money, but it is far more difficult to earn it. In this post, we’ve outlined the most important methods for saving money in the future.
In a country like India, where the population is continually growing, a poll found that Indians’ consumer spending power was more than 17 billion rupees in the third quarter of the fiscal year 2018-2019. Because most Indians are consumerists, it claims that conserving money is the biggest casualty of India’s expanding consumerism. This is why you should begin saving money, as it will increase your income automatically.
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Best Way to Save Money in India
1. Choose a Saving Account
You can choose a savings account that will pay you a respectable interest rate instead of a standard bank deposit or lock your money for the long term in fixed deposits. Some new banks have started paying up to 5.5 percent interest on your savings account deposits. Students’ savings accounts are far superior to no-frills accounts because they offer zero-banking and regular incentives.
2. Save Electricity (How to Save Money in India)
Electricity conservation equates to financial savings. Even when fans or lights are not in use, many people leave them on. Some people have the terrible habit of turning on the air conditioner before entering their room to keep it cool when they arrive. If you wish to save money, you must change these dubious activities.
When not in use, always remember to turn off the lights and any other electrical appliances. You should also consider LED lights, which are far more cost-effective than normal light bulbs.
3. Make Monthly Budget
Many of us may be avoiding this job because it is inconvenient. To maintain a balance between your monthly income and expenditures, it is still advisable to track your costs and keep a monthly budget. We’re not asking you to be overly formal or elaborate; just keep it basic.
You can only keep track of your cash and bank transactions for one month; after that, you’ll have a better understanding of how much you can spend and how much money you have saved. This will assist you in determining the number of fixed expenses and those that can be avoided.
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4. Never be Enticed by Special Offers (How to Save Money in India)
These bargains are fantastic marketing strategies. When purchasing more than you require, you should avoid taking advantage of special offers. For example, if you just need one shirt and come across an offer for two -shirts, you can get the third one for free. These offers may cause you to go over budget because you may purchase something you do not require right now.
5. Invest in a Variety of Things
It is one of the most effective ways to raise your income and, as a result, your savings. Fixed Deposits, PO plans, LICs, Mutual Funds, and other investment opportunities are available. You can save money by choosing many investing options rather than just one. Once you’ve invested, you can reinvest your earnings in ELSS, PPF, bonds, fixed deposits, the stock market, and other investment alternatives that can help you earn a lot of money.
6. Buy Health Policy
Purchasing a health insurance policy has become a must. You are not saving money if you have not purchased it for yourself and your family. You are putting yourself and your family under extreme stress if one of your family members becomes ill.
Purchasing a health insurance policy might assist you avoid circumstances where medical costs are expected to rise. You can choose any health insurance plan by comparing prices on websites like PolicyBazaar, PaisaBazaar, and others.
7. Spend Less On Your Vehicle Fuel (How to Save Money in India)
If you carpool or take public transportation such as the bus, metro, or shuttles, you are helping to save the environment as well as money. This could help to stabilize not only the gasoline price (which is rising day by day owing to increased usage) but also one of the most effective strategies to reduce traffic congestion.
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8. Income Tax Savings
You may be asking how we might save money on income taxes. Investing in areas where you can save taxes and make better use of your money is the proper thing to do. Check parts such as HRA, 80C, 80D, and 80E to see if this is the case. Investing in life insurance and top-ups, for example, could help you avoid paying a lot of taxes. Always talk to your accountant about and establish a tax-saving investing strategy.
9. Use free ATM’s (How to Save Money in India)
As you may be aware, after the first five ATM transactions in a month, you will be charged Rs.20 each transaction, excluding GST. To prevent these fees, make sure you use your ATM card at the same bank’s ATM branch. If you have an SBI ATM card, for example, you will not be charged a penny no matter how many transactions you complete in a month when you use your SBI card at an SBI ATM branch.
10. Personal Finance Management
There are several books availiable to help you understand the notion of personal finance management. This will also help you keep track of your assets and liabilities, as well as your income and expenses.
11. Book Travel Tickets in Advance
The closer you go to your vacation, the more expensive the tickets will be, whether it’s for a flight or a hotel reservation. If you plan your trip 2-3 months ahead of time, you can save money. If you’re planning a vacation, you can prepare ahead of time and get competitive bids. If you have a pressing need or an emergency, you may be forced to book at whatever price is offered.
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12. Prypay Outstanding Loans (How to Save Money in India)
If you earn a raise, bonus, or salary raise, but the extra money toward paying down your existing home loan, auto loan, personal loan, or other loans if you have any.
Paying down the loan can save you money on interest and allow you to get out of debt sooner.
Because you are debt-free, you can invest and build your money by employing long-term money-growing options such as mutual funds and stock market investments.
13. Head Outdoor
Instead of travelling to cheap hotels, malls, or any other man-made location, you can go outside for scenarios where you don’t have to spend anything except time relaxing in quiet. You can organise a picnic, go camping with all of your belongings, and enjoy a bonfire. You’d be able to save a lot of money.
14. Scholarship (How to Save Money in India)
This option is only available to students who are currently enrolled in high school or college. If you thrive and get a high ranking among all of the other students, your school/college or an external organisation may grant you a scholarship. This will enable you and your parents to save a significant amount of money in order to complete your further courses without paying any costs.
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15. Home Maintenance
If you pay attention to the plumbing, electrical, and structural condition of your home, you can save money. If you maintain track of household problems on a daily basis, you can see a little flaw and correct it yourself (weekly). If you don’t check these boxes, the situation will get worse, resulting in expensive repairs.
16. Dispose of Junk
This is one of the strategies that many of us overlook. It will not allow you to save money, but it will allow you to earn money by disposing of undesirable items such as newspapers, old plastic bottles, cans, broken appliances, torn garments, damaged furniture, and so on. It’s a good idea not only for the money, but also for the house’s cleanliness and aesthetic appeal.
17. Allowance For Emergency Funds (How to Save Money in India)
You should set away money for emergencies in addition to your wants. Although you can utilise your savings for this, going back to zero will be difficult, especially if you’re well along in your savings path.
Of course, you can include any other things in your budget that you desire. It’ll all come down to personal preference. The only thing that matters is that you will be able to add to your funds.
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18. Piggy Bank
Using toy-like piggy banks as an adult may seem silly at first. This is, however, a useful item to have on hand, especially if you frequently work with money and spare change. Although it may not appear so, collecting pennies can result in significant savings over time.
As a result, it’s only natural that you think about keeping a piggy bank by your side. This straightforward activity can assist you in getting the most out of your budget.
19. Switch to Prepaid Mobile Phones
If you want to prevent unexpectedly huge payments, now is the time to start using Prepaid plans. Postpaid consumers tend to overpay the provider because it is impossible to track consumption until the bill arrives, and you can go over the limit. It’s also possible that you’ll be charged for signing up for an undesired premium service that you didn’t ask for.
Prepaid options allow you to stay inside your upper limit while still being less expensive than postpaid plans. As a prepaid client, you can save a lot on roaming fees.
You’ve probably encountered cashback specials on the internet while shopping for anything, whether it’s travel, apparel, furniture, or home-decor related websites. However, there are a few requirements to meet before you can see if you’re qualified for the money. The cashback is available on a specified debit or credit card, and after a few days, you will receive quick discounts or money in your account.
How to Save Money in India
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