Today we have more options to spend our money than 10 years ago. You can go to the mall and spend your savings on dress, décor, food, entertainment, and more in just one go. Alternatively, you have all the options online today. Saving money has become a challenge for millennials today. If you are someone who is trying hard to save money, here are the top 25 best ways to save money in India 2021.
This article will answer all your questions such as ‘how to save money monthly?’, ‘how to save money for children’s future in India?’, ‘how to save money for retirement India?’ and more. Moreover, if you are wondering about how to save money in India as a student?’, we have the answer.
Let’s look into some significant money saving tips and then classify them as per your objective.
Table of Contents
Top 25 Ways to Save Money India 2021
The best way to save money in India is an amalgamation of simple habits. You do not need to climb mountains to save money. Instead, inculcate some simple save money tips into your daily habit.
Since there is no one-line answer to ‘How to save the money in India?’, let’s delve into the details of ways to save money in India.
1. Earn Interest from the bank
When you ask someone ‘How to save money in Bank?’, they hardly give a second to you. It’s kind of obvious. You keep the money in the bank and get the interest.
Well, in most cases, you spend what you keep in the bank. So, how do you save and earn interest from the bank? Schedule a recurring deposit at a date just after your salary gets credited. Alternatively, if you have already saved a lump sum in your account, you can open an FD.
Yes, when you have your money sitting idle in your bank, you earn an interest of around 5% as well. So next time anyone asks you, ‘How to save money in India in bank?’ You know the answer. FD and RDs are the best way to save money in bank in India.
2. Save on Electricity
Switch off the fan and light bulb when not in use. You were expecting to read this. Isn’t it? Yes, you know ‘how to save electricity bill?’. But there’s more to it.
You can get a discount on electricity bills just by paying the bill through online payment within allotted dates. Most state electricity boards have made the provision of offering a discount on electricity bill when the user pay online within the allotted date.
Another answer to ‘How to save money India electricity bill?’ is opting for LED lights and 4 to 5-star electric appliances. They are cost-efficient as they consume less electricity while providing the same or better service than other electrical appliances.
3. Eliminate intermediaries
This is the next best way to save money India. Have you ever wondered how Amazon and Flipkart are proving the same products at a lower price than market price? The open secret behind this is the elimination of intermediaries.
Intermediaries or middlemen charge you extra to get their commission cut. You may need multiple services or products in your life. Always try to find the source instead of purchasing the service/product from a middleman.
For instance, if you are looking for a house, try to find one through references than contacting a broker. Whenever you engage a broker, he takes his cut that increases your cost of getting a house.
4. Give second thoughts on EMI
Today the term ‘No Cost EMI’ is trending. But reconsider your thoughts on EMI. When you pay for a product in monthly installments, there is a cost. You pay interest for paying in installment knowingly or unknowingly.
Even if you are using the facility of ‘No Cost EMI’, there are some hidden charges. Therefore, it is always recommended to avoid EMIs. Purchasing products or services on EMI may seem convenient but it also renders some extra money from your pocket.
When opting for EMI, it is better to opt for Zero-interest or No-cost EMIs than regular EMI as the interest rate is lower. However, in both cases, you pay more than the shown price.
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5. Evaluate Online Shopping needs and splurges
Online shopping is booming by providing the buyers the comfort of doorstep delivery and huge discount. You must have noticed how the so-called ‘SALE’ days have increased in the last decade.
It is no secret that the word ‘SALE’ triggers the buyer inside us. But if you evaluate your online shopping list in the past few years, you are sure to find at least 20 products that were bought just because it was on sale and not for your need.
Impulsive purchases can cut down your savings in just a few seconds. Therefore, whenever you see something on sale next time and feel tempted, ask yourself ‘Do I need this right now?’
The best way to save money India is to check impulsive buying.
6. Strategical Investment
Inflation is reducing the value of your saved money every passing day. If you want to save money for the future, there is no other way than to invest. There are multiple investment options around you.
Mutual funds, LICs, ULIPs, gold, real estate, and stocks are the most common investment options. It is important to set your financial goals and decide the best investment options according to your goals.
For instance, you want a return of 7%-9% on the saved money in 6 months, you can opt for suitable debt funds. Similarly, you have about Rs. 50000 and you don’t want to spend it in 10 years, invest the amount in gold (digital gold and not physical gold jewelry).
You also need to evaluate your risk appetite, time horizon, and thorough knowledge about the chosen investment option.
7. Save on Fuel with shared transportation
Inflation of fuel prices is a burning topic today. The price of petrol and diesel are aiming to touch the sky. If you want to save money, you can easily save a good amount just by avoiding the use of your private car.
You can use carpool or local transportation for daily transportation needs such as going to the office, grocery store, or college. This will help you save more than you can expect.
8. Save on Health expenses through adequate insurance
If you have not invested in a good health insurance policy to save money, you are doing the worst mistake of your life. Medical facilities have become expensive. Therefore, if you are saving by cutting down health insurance, there is a high possibility you may end up spending more than you saved in a medical emergency.
Check and compare the health insurance policy to choose one that provides maximum coverage at a reasonable price. Also, check the claim settlement ratio and customer care service to choose good health insurance.
You may also opt for a family health insurance policy. Investing in a health insurance policy now can save you money in the future.
9. Avail Cashbacks and Offers
Most online shopping sites and payment apps offer cashback on selected purchases. You can save money by keeping an eye on cashback offers and purchase accordingly.
Another tip for saving money is comparing the prices of a product before purchase. If you are aware of the upcoming sale, keep the patience to wait for the price to go down and then make the purchase.
10. Quit Addictions
A large portion of the Indian population is addicted to smoking and drinking. You won’t even realize how addiction is draining your savings until you have none.
For instance, you consume 2 packets of cigarettes every day. Let’s assume the price of each packet is Rs. 70. You spend Rs. 4200 every month behind your cigarettes.
Any form of addiction can drain out your savings. Therefore, try and quit addictions if you want to save money.
11. Watch the cost while socializing
Socializing is important for every individual. You hang out with your friends to relax and enjoy your leisure period. With options of restaurants and public meet-up places flooding around you, you can either opt for a high-end place or a decent place at an affordable cost.
The choice of meet-up place can be yours. Check out the most affordable meet-up places around you to socialize. You may save a good amount if you do not visit high-end restaurants for socializing with your friends.
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12. Avoid fines and penalties
When you are looking for ‘How to save money in India?’, you don’t want to spend unnecessarily. Keep a check on the pay bills every month so that you make the payments on time.
Be Vigilant to avoid fines and penalties by paying the dues of your credit card or electricity/gas bills within the allotted time frame.
13. Invest in NPS
National Pension Scheme (NPS) is the answer to ‘How to save money India for retirement?’ NPS is a government-sponsored scheme that you can invest in through Indian posts, banks, or AMCs.
NPS ensures disciplined saving for sustaining your lifestyle after the age of 60 years. When you invest a specific amount every month for your retirement, you do not need to think twice about money after your retirement. Also Read: National Pension Scheme | NPS Scheme | How to open NPS Account
14. Minimize Debts
Debts can slow down your savings goal. Debt can be a home loan, personal loan, or a loan from a friend or relative. Always try to clear the debts as early as possible.
In case, you have taken a loan from the bank for 20 years, try to close the loan early by paying an extra EMI every year. Alternatively, you can ask the bank to increase the EMI by 5% every year. In this way, you can close the loan earlier and save yourself from paying a hefty amount as interest to the bank.
Minimizing debts is one of the significant steps that can help you to save money India.
15. Disciplined investment for child’s education
‘How to save money for child education?’ is a common question when people are searching for save money tips India. The best way to save money for your child’s education is investing regularly in a legit scheme with good returns.
You may opt for LIC schemes, equity funds, or any authentic investment scheme for 10 years to 15 years. The college fees are increasing every passing year. Therefore, it is essential to systematically invest your hard-earned money.
It is essential to check the authenticity of any scheme before investing, especially when you are investing for the long term. Do not fall into traps of frauds selling you schemes promising unbelievable returns.
16. Create a shopping list every time
Supermarkets like BigBazaar, Spencer, More, etc. give us the ease of shopping everything in one place. But people also end up spending more when they go shopping in these supermarkets.
The best way to save money when you go shopping is to create a shopping list beforehand. The lists remind you what you need to buy and prevent you from purchasing what’s not needed.
17. Budget and cut down unnecessary expenses
Budgeting is an underrated habit that every one MUST develop. It helps to know where you are spending your money. The monthly budget provides a clear picture of your income and spending helping you to identify unnecessary expenses.
If you are looking for an answer to ‘How to save money from salary India?’, monthly budgeting is the solution. Try it out for one month and you will surely understand the significance of budgeting to save money.
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18. Utilize Loyalty points and rewards from credit cards
If you are a regular credit card user, you can save money by utilizing loyalty or reward points to purchase products. Most credit cards offer reward points if you purchase items using them and make the repayments on time.
In most cases, people ignore these rewards points. But these reward points can save you some bucks if you know how to use them for purchasing your desired products.
19. Save money from Income tax
There are some tax exemptions that you can apply for in ITR e-filling. Check out the Income Tax Act section 80C, 80D, and 80E. It aloe provides tax exemption for house rent allowance (HRA).
You may consult a tax consultant to gain knowledge about saving tax. It is always recommended to opt for tax-saving investment options if you want to save money.
20. Calculate before you travel
Traveling is a part of life that you cannot ignore. Plan for your vacation or tour ahead of time. While last-minute bookings are costly, you can get amazing discounts on hotel booking and flight fare if you book months before your travel.
However, due to pandemics, there are multiple restrictions on traveling. Even if you have planned a tour, it is recommended to save money for traveling till the pandemic subsides.
21. Opt for local brands
Clothing is essential but branded clothing is not. Instead of spending heftily on branded clothes, opt for local brands. Of course, check the quality of clothing before purchase.
You can find good quality clothes in the local market without digging a hole to buy a single garment. Visit your local market or order from local brands online to save some money that you may have splurged on branded clothes.
22. Subscribe only if it is necessary
There are products, magazines, online resources, entertainment platforms that you may have subscribed to. Ask yourself if you still need them? If you use or utilize these subscriptions, you may continue. But if you don’t, just unsubscribe them. You don’t need to spend money on something that you do not actively use.
23. Sell what you don’t use
When you want to save money, multiple crazy ideas pop up in your head to source money. Selling something on OLX, Quikr or other online marketplace is one of those ideas.
Surely, you can save a few bucks if you sell things that you own. But do not sell something that you may need later. In such a case, you won’t save but spend more on the same product. You can sell old books, clothes in good condition that does not fit you, electronic gadgets that you don’t use anymore, etc.
24. Carry your lunch box
If you want to become a PRO in saving money, just carry your lunch box. Be it college or office, if you are spending money on food every day, you ultimately spend a lot at the end of the month.
Therefore, get yourself some homecooked food and save up to Rs.100 per day. Moreover, it would also improve your health as you do not consume junk food.
25. Use Library to cut down book cost
Books are valuable but you can gain knowledge from books without buying them. If you are an avid reader, it does not mean you have to purchase thousands of books. Save the price of the books just by getting yourself a membership in a library.
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Frequently Asked Questions
1. How to save money for a kid?
- Keep a part of your salary specific to education needs
- Disciplined savings
- Invest in Legit Schemes
2. How to save money as student?
- Save by not spending on junk food
- Sell old books
- Save on book by reading from the library
This is ‘how to save the money in India’ as a student.
3. How much should I save for retirement India?
Usually, the average life expectancy is 75-80 years. Calculate your monthly expense and multiply it by 20×12. Add inflation of 6%. The amount you get is the amount you must save for your retirement.
4. How to save money in bank in India?
- Open Fixed Deposit
- Start Recurring deposit
These are the best way to save money and earn interest in India.
5. How to save money for college students?
- Start recurring deposit
- Earn and save from tuitions
- Save on books through library membership
6. How to save my money India?
Inculcate the habit and discipline of saving money through simple habits.
Final Thoughts
Maximizing your savings isn’t difficult if you know where to spend and where not to splurge. Adapting the 25 save money tips India mentioned above can help you achieve your financial goals in a disciplined way. Hope these ways to save money India will help you save better for fulfilling your dreams quicker.
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