Want to know the right ways to save money in India? – Then diving deep into this post will guide you learn the most practical ways of saving your hard earned income year after year.
Actually, when it comes to saving in India, there are various options available for you- Insurance, Investment, Online Shopping, Use of Right Credit Cards, Mutual Funds, Saving Account, and so on. We will go into the details of all these, but first, let me ask you one question-
Do you also complain that you do not have enough to invest? – If answer is yes then, do not worry!
There are so many people like you in India and we have assisted them in saving money via some personalized saving tips in India.
The whole process is quite simple- You must have been seeing mutual funds’ advertisement these days that suggest to you that you can start saving with an amount as small as ₹500 per month.
We will talk about other smart hacks and tricks that will help you save much more than that.
Frankly speaking, saving money is a technique- That is very simple yet a little tricky also.
The very first thing that you need is to learn cash administration and money management. This offers the right result for everyone. In addition, it will be the most effective way of wealth creation for you. In this article, I will take you through an assortment of money-saving tricks that are used by finance experts. All these tips are compiled here after having a discussion with some of the smartest minds in India who understand Indian consumers, their regular lives, habits, and tendencies of spending cash or digital currency.
So, without any more ado, let us focus on the special tips shared in this post to save money in India-
Draft your Monthly Budget
Despite being one of the oldest tricks, this one is never going to be outdated. However, we sometimes forget this.
I understand that planning and following monthly expenses are an exhausting and equally boring activity. But in today’s time, when we constantly see enticing advertisements on TV and Smart Phones, it is very important to draft your monthly budget.
By using this tip, you can spare decent cash in the event that you prepare with a monthly financial plan. You should simply monitor your Cash, Debit & Credit card exchanges on monthly basis. Once you do this for the first month, it will be automatically channelized in next months.
You can begin working on in right now- Just start noting down the money spend on below given things in this month-
- House Rent
- Child's Education Fee
- Travel Expenses
- Daily Consumables
- Daily Expenses
- Offline Bill Payments
- Online Shopping
- Bills (Mobile, Internet, TV)
- Dining (Restaurants)
- Travel (Cabs, Train, Flight)
- Insurance (Car, Health, Life)
Paying heed upon these things and making monthly budget accordingly will for sure help you in saving a good amount.
Start making Investments ( SAVE MONEY )
Having a proper investment plan is also going to help you save in short as well as in long-term.
In general, people in India also are always in search of some best investment options to park their hard-earned money. Earning money is important but knowing the smart ways to maximize the returns from the investments of that money without risking your capital, is more significant in today’ time.
You can easily find some of the most lucrative investments options in India that will not only save your money but also multifold it in long run. You can invest money into mutual funds or the equity market.
Other top investment options in India for you are-
- Public Provident Fund – PPF
- National Savings Certificate (NSC)
- Senior Citizen Savings Scheme (SCSS)
- Money Market Funds
- Bank Fixed Deposits (FDs)
- Sukanya Samriddhi Yojana
- National Pension System
- Atal Pension Yojana
- Tax saving mutual funds – ELSS plans( Equity Linked Saving Scheme)
- Diversified Mutual Funds Investments
- Direct Equity/Stock Investments
- Real Estate Investments
- Gold/Commodity investments
- Corporate/Commercial Deposits (CDs)
- ULIPs – Unit Linked Insurance plans
- Endowment/Money Back Insurance Policies
- Art/Wine investing
- Private Equity
- Chit Funds, Deposits from Gold Loan companies
Do you want to know in details about these investment options? – Tell us in comments and I will soon come with a comprehensive post on available investment options in India.
Choose the right Insurance Policy
We all know that prevention is better than cure.
Choosing the right insurance policy can save you a lot of money in critical circumstances. It is always smarter to spend around Rs. 5000-10000 every year on a premium of a medical coverage as opposed to paying major cash when you or your near or dear ones get hospitalized.
In today’s time, diseases or mishaps comes without a welcome.
In such scenarios, insurance may save Lakhs of rupees on hospital bills if there occurs any severe crisis. It is vital to be protected constantly to keep away from any such unwarranted situations. This will help people in the time of inconsistencies.
There are different insurance plans for you to pick as well.
Good hospitals usually charge big sums. However, in the event that you are completely protected by an insurance policy, you won't need to pay for the doctor's visit, hospital, and other medical expenses to an expansive degree. In addition, the immaculate treatment would be guaranteed for you as well.
Check out: Best Health Insurance Companies in India
Do Online Shopping using Cashback & other Coupons
We all prefer doing online shopping these days.
However, you need to know here that the smart buyers around the world buy their preferred products and services at markdown costs using personalized coupons.
Using coupons for buying products and services will help you save really a good amount of money.
You can use different coupons sites like CashKaro that will help you get coupons for your online shopping. These coupons will directly transfer some cash to your bank account.
Using different bill payment applications like Paytm, MobiKwik, PhonePe, etc. also give Cashback and discount offers to their users. When you choose their services, the Cashback amount will be added in a respective digital wallet that you can further use on your other online recharges and bill payments.
Hotel booking, Flight Booking, Bus Booking, Restaurant Coupons, Discount offers, etc. are easily available on different coupon portals that help you purchase different product and services at discounted prices.
Utilize Right Credit Card (saving money)
In the time when digital means are the most prominent one to do shopping, it is very important to use the right Credit Cards for getting the most benefits on your shopping.
This will help you spare around Rs. 500 to Rs. 1000 every month relying on your credit card and month to month shopping. Choosing right credit card can help you save approximately 5% Cashback on the purchase of regular life items, plus, it will enable you to get around 20% Cashback on restaurant, hotels, and film ticket booking.
In addition, you can likewise add interest to your capital by paying via credit cards and keeping the money safe into bank accounts.
We have given picked credit cards which will save your lot of money : 25 Best Credit Cards in India
Select a Good Saving Account
Most of the people in India keep their money in saving accounts, and you can intelligently use it to appreciate high returns on investments. If you are a student or someone who doesn't have a saving account or wants to open a new saving account you can apply online we have explain in easy ways how to open a bank account online? you can surly have a look at it.
You can put your money into the fixed deposit and earn the interest. Intelligent use of saving accounts will enable you to not lose the premium that you could procure on your money invested in saving account.
Most of the banks offer around 4% on savings the account, in addition, some other banks such as Yes Bank and Kotak Mahindra bank offer interest of around 6%.
Check out : Saving Account with Interest Rates in India
Start Saving Money from Income Tax
This one is the last one in my list of best options to save money in India, and it is the most preferred one as well.
The government continues presenting different methods for saving your tax amount. Some of the most prominent choices are PPF, LIC premium, NSC, FD with post offices & banks. These techniques will help you save taxable amount of Rs 1, 50,000 as per sec 80C.
Additionally, medical bills, house rents, different bills may also help you save your tax.
Check out: Ways to save money from Income Tax
On the concluding note, I hope you would have understood some of the smartest hacks of saving money daily, monthly and on yearly basis.
This tips are going to be quite helpful in letting you be future ready in the most secure way possible.
Do share what techniques you use to save money every month in the comment section below!