How can you save money?

It can be a source of comfort to have a nest egg of savings to fall back on in case of an unfortunate personal financial crisis. Anyone can face a financial emergency brought on by a variety of unforeseen circumstances – medical treatment, loss of a job, money required for higher studies.  You never know when you need that crucial extra financial support that can help you keep your head above water.

Your savings work as an emergency buffer and help you avoid getting into debt to pay just for your bare necessities.  Also, having a savings plan helps you in your golden years of life—when you retire and no longer have a salary. It is important to save and more importantly make your investments work for you so that you can be comfortably off.

Following are some tips to save money:


  • Make it a point to save at least 10% of your income by transferring it into a separate savings account, as soon as you receive your salary.

  • Make it a mantra to first save and then spend. Do not spend and the only save what is left over. Save a specific amount every month, and spend only what is left over.

  • Make a monthly budget so that you have a clear idea what your various expenses are. Stick to your budget.

  • Periodically revisit the budget to make changes to reflect your lifestyle. Over time, your expenses will change, keep that in mind when revisiting your budget.

  • Invest wisely—most importantly, do not put all your eggs in the same basket. Diversify amongst different investment instruments, like Mutual funds, gold, real estate, etc. Keep a track of the returns on your investments (fixed deposits, mutual funds, etc.).


  • Look online for coupons and use while shopping—save when you spend!

  • Absolutely avoid impulsive buying—make a list before shopping and stick to that list.

  • Avoid spending excessively on credit cards. Make it a point to pay off your bills in full every month,

  • If you have a large amount outstanding, concentrate on reducing your debt. The interest rates on a credit card outstanding is probably the highest—after personal loans.

  • Use a credit card judiciously, so that you are able to milk it to the maximum of its benefits like rewards program etc.

If you are disciplined, saving is not difficult. It should become a habit. Have a separate bank account for your monthly savings and watch it grow - you will be amazed at how much you have saved by the end of a year. This will keep you motived to save bigger, and invest better. It is never too early to start saving and planning for a rainy day.