Maybe your life is stable, and everything is well-planned, but what if a financial emergency occurs? Are you prepared for that? What would you need then? Money! To avoid such a scenario, saving money is important. Here in this article, we will discuss 50 ways to save money in India.
‘Money saved is Money Earned’ “right”? No one would ever want to lose their hard-earned money. As it is very easy to spend or lose your money, but it is not that easy to earn it. We have jotted down the crucial ways in this article, which will help you save your money going forward. Trust me, if you read this entire guide, it will make you save thousands of rupees, and it will be worth investing your time to learn about money-saving ways.
It doesn’t matter whether you are a school or a college student, being out of cash is one state which may be experienced by many individuals. In a country like India, where the population is increasing rapidly, a survey was conducted which stated that consumer spending power of Indians during the third quarter fiscal year 2018-2019 was more than 17 billion rupees. Because most Indians are consumerists, it states that the main casualty of India’s rising consumerism is saving money. This is why you should start saving money, as it will automatically boost your income.
Top 50 Ways to Save Money in India 2020
We understand that consumerism has helped Indians to enhance their living statements and has also helped many companies to grow and generate more jobs/employment options. Here, by saving money, we do not mean/want to deteriorate your lifestyle. It is just to ignore the budget deficit situation ever and to live your life peacefully.
Listed below are the simplest ways to help you save plenty of rupees daily, monthly or yearly run-
1) Chose a Good Savings Account
Instead of opting for the regular bank deposit or freezing your money for the long term in fixed deposits, you can go for the savings account that will provide you a decent interest. Some new banks have started paying up to 5.5% interest on your amount deposited in the savings account. Students’ savings account are way too better than a no-frill account as they get the zero-bank facility and regular freebies.
2) Eliminate The Intermediaries
It is the best way to save ample money. Have you ever thought about how websites like Amazon, Flipkart, Snap deal are selling products at such reasonable prices? Have you ever thought about how have property websites like Magicbricks, 99acres, RealEstateIndia become so renowned from the past few years? The sole reason is that they have cut down intermediaries out. This has benefitted not only the Online merchants to boost up their sales but also the customers as it has let them saved their money.
3) Save Electricity
Saving electricity is equal to saving money. Many people leave fans or lights turned on, even when it is not required. Some people have such bad habits to turn on the AC before they enter their room, in order to get the room chilled when they come. These are shady practices that need to be changed if you want to save money.
Always make sure to turn off the lights or any other electrical appliances whenever it is not being used. You should also opt for LED bulb options as they are very cost-efficient as compared to the regular light bulbs.
4) Save money on Vacation Expenses
Who does not love traveling? We can save thousands of rupees when we are traveling to some other place, be it a hotel room, mode of transport, food expense, ticket booking, etc. Whether you stay in a 5-star hotel or you stay in a good luxury budgeted apartment, it is up to you how much you are willing to spend and how can you save money on your vacation expenses.
You should always use public transport whenever you are traveling rather than taking cabs and search for budget hotels which are newly opened. It is also advisable to book your package after checking the price on multiple websites or with various travel agents, which will help you save a lot on expenses.
5) Make Monthly Budget
Many of us may be avoiding this job as you may find it annoying. Still, it is advisable to track your expenses and maintain a monthly budget to create a balance between your monthly income and expenditures. We are not asking to make it complicated and be very professional; just keep it simple.
You can only keep track of your cash and bank transactions only for one month, the next month onwards you would get an idea how much you can spend and how much is your savings. This will help you to ensure the number of your fixed expenditures and those which can be avoided.
6) Switch to Prepaid Mobile Phones
If you want to avoid high unwanted bills, then it is the right time for you to start using Prepaid plans. Postpaid customers are mostly overpaying to the company as it is quite difficult to track usage until you get the bill, and you can go beyond the limit. Sometimes you could also be charged for activating an unwanted paid service that you have never even asked for.
Prepaid plans help you to be within your upper limit, and the overall costing is low as compared to the postpaid plans. You can save a lot on roaming costs being a prepaid customer.
7) Shop Online
Nowadays, shopping online is one of the best things you could do for your pocket. There are several reasons as to why you should opt for shopping online and how can you save money through it-
- You can always check the option for additional cashback as many products and websites such as Amazon, Flipkart, Snapdeal, etc. Sites like these are offering additional cashback discounts on specific bank’s credit cards.
- Compare the prices of the product you have chosen to buy on multiple websites. This will ensure the best price of that product
- Go for an option of Interest-Free EMI or Zero Interest EMI, which would be available on your credit card depending upon the product you are buying and which bank’s credit card you are using.
- Use payment wallets like Freecharge, Paytm, Mobikwik, and PayU to get an additional cashback or instant discount options
8) Never Get Attracted to Offer Deals
These deals are excellent marketing techniques. You should avoid offer deals whenever you are buying more than your requirements. For example- If your need is to but only one T-shirt, and all of a sudden you see a deal on buying 2 T-shirts, you get the third one free. These deals can make you go over budget as you may spend on something which you do not need now.
9) Diversify Your Investments
It is one of the best options to increase your income and hence, savings. You can opt for various investment options like Fixed Deposits, PO schemes, LIC’s, Mutual Funds, etc. Not only one, choosing multiple investment options will help you save money. Once you have invested, then distribute your return again in ELSS, PPF, Bonds, Fixed Deposits, Equity Market, and many such investment options that increase the possibility of getting considerable returns.
10) Buy Health Policies
It has become a requisite to buy a health policy. In case you haven’t bought it for you and your family, you are not saving your money. You are indeed risking you and your family in undue pressure in case any of your family members got sick.
Buying a health policy can help you avoid those situations when medical fields are going to be rising and very costly. You can opt for any health policy by comparing the price online on websites like PolicyBazaar, PaisaBazaar, etc.
Also Read: 10 Ways to Double your Money Fast in India?
11) Prepare A List Whenever You Shop
Have you ever thought the big brands like Big Bazaar that earn so much from the companies which display their product on their shelves in order to make the consumers buy those products more? They earn hefty revenue by showcasing their products as it increases their sales significantly.
It may happen to you that while you are going for shopping, you might come over with a heavy bag of clothes and emptying your pocket. However, preparing a list before you go shopping will never let this situation come and is one of the most impulsive ways of saving money. The sole reason is that you would know what product in how much quantity you need.
12) Save Money On Your Vehicle Fuel
If you are doing carpooling or using public transport like bus, metro, or shuttles, you are doing the perfect job to save your environment as well as your money. This could stabilize not only the fuel price (which is increasing day by day due to the increase in its consumption) but also one of the best ways to lessen the traffic.
13) Save Money on Income Tax
You might be wondering that how can we actually save money on the tax levied on our income. The right thing to do is to invest in those areas where you can save taxes and utilize your income in a better way. For this, you need to check sections like HRA, 80C, 80D, 80E section. For example- investing your money on Life Insurances and Top Ups could help you save money on paying huge taxes. Always discuss and prepare the investment tax savings plan with your CA.
14) Eat Home Cooked Food
It is not only best to save your money but also to keep you fit and healthy. Even for the people going to the office regularly, they should take lunch from home to their office. Although eating outside food once in a blue moon is not a bad habit but eating it now and then might be not good for your health and pocket.
15) Avoid Debts
Always prefer using a debit card instead of a credit card. You may go over-limit and make unnecessary expenditures while you are using a credit card. You will also need to pay a late payment fee or no-interest charge, and making futile EMI transactions and paying interest on those transactions. Maintaining your financial discipline is feasible when you are not using a credit card as you will know what your spending out of what you are having.
16) Use free ATM’s
As you may all know, after the first five ATM transactions in a month, you are charged Rs.20, excluding GST per transaction. To avoid those charges, you need to be assured that you are operating your ATM card in the same bank’s ATM branch. For example, if you have an SBI ATM card, you will not be charged even a single penny, no matter how many transactions you make in a month only when you are operating your SBI card in the SBI ATM branch.
17) Buying Unnecessary Insurance Policies
Considering many students who are not earning anything, there is no need to buy any insurance cover for themselves. If we talk about a medical emergency, most students have their dependant card to fall back. It is never advisable for them to go for any kind of policy unless they have a loan to repay.
18) Say No To Drugs And Addiction
Never get addicted to anything, be it smoking, drinking, gambling, sex, social media content, or anything that may disturb you in the long run. Some people crave for their addicted drug even at the extent of selling off their home for that drug.
These type of addictions will take you nowhere but take a heavy toll on your pocket and compel you to crave for more. If you stay with any of the unauthentic dependencies, it will not only keep your financial but mental and physical well being.
19) Chose cosmetics wisely
Usually, all cosmetics companies target youths for beauty and skincare products. It is always advisable to buy smaller packs for any cosmetic you buy as you may experience rapid hormonal changes that might impact your skin. The other thing that you need to ensure is that whether the product you are buying is complimenting your skin type or not. This will avoid incurring useless expenditures by opting for the best option as per your need and suitability.
20) Personal Hygiene
Poor body hygiene is one of the leading causes for teenagers who suffer from acne, pimple, or other skin problems. Hence, you should maintain high-level personal health to avoid spending your money on doctor’s fees or buying useless creams, and lotions
21) Know how to Bargain
Bargaining is a skill that you should know where, when, and how to be used. Obviously, you cannot bargain in a super premium brand store like Gucci or Prada. However, street-side vendors often quote you the price after adding a lot of premium. If you know how to bargain, you may get the stuff at an ideal price.
You may have often seen the cashback deals online while you are purchasing any stuff from any website, be it travel, clothing, furniture, or home-decor related websites. However, there are certain conditions before you check whether you are eligible for the cashback or not. The cashback is available on a selected debit or credit card through which you will get instant discounts or cashback in your account after some days.
23) DTH Plan
Instead of opting for a plan that includes all the channels, always select the channels you are going to see by your family members or you, and chose your package accordingly. If you have kids in your family, you cannot avoid cartoon channels. Similarly, customize your entire package, and you will see the difference in the plan you are already on and the dropping of price in the DTH plan once you customize it.
One of the other ways of saving money on these TV channel packs is going for Hot star and Amazon Prime packages. You can avail of their yearly packages at an affordable price as compared to DTH plans.
24) Free Facilities to Keep Your Mind Busy
There are numerous free activities which are available near your localities such as dance classes, gym, Internet cafes, photography clubs, musical performances, art exhibits, film festivals, theatre productions, dance recitals, sporting events or free training for various courses offered by some educational institutes for a limited period of time.
When you opt for in-house free facilities, it could immensely help you save lots of money as it will avoid getting you distracted from spending your money on detrimental activities. It will not only keep your mind busy but enhance your productivity.
25) Minimize Your Rent
Doing valuable savings for the future is an ideal thing rather than paying high rents. There is no point in spending a hefty amount on your rental abode that only burdens you up. It is better to find a cheaper place and save some money from the rent you were paying prior. It will help you to accumulate money to buy your dream home.
26) Personal Finance Management
There is an array of books that would assist you in understanding the concept of Personal Finance Management. This will further help you in keeping track of assets and liabilities, also on income and expenditures.
27) Try Low-Cost Activities While You Are Socializing
Whether it is your family or friends, going out in a 5-star hotel, or an exorbitant mall, you would need to spend lots of money to enjoy those lavish dinners or exclusive parties that are of no use. Instead of spending so much on these activities, you could even go for grand house parties. These parties won’t affect your pocket, and it is worth spending some quality time with them too, be it your friends or family.
28) Book Travel Tickets in Advance
The nearer your trip would be, more expensive you will get the tickets, whether it is of your flight or hotel bookings. You can save money by planning your trip 2-3 months prior. If it is a holiday, you can plan well in advance and experience quotes at reasonable prices. However, if there is any urgency or any emergency, you may have to book whatever price is coming up.
29) Funds for Emergencies or Opportunities
There should always be a savings box like a piggy bank in which you should keep your savings to be prepared for any emergency or to grab any opportunity for the future. It is indispensable to keep some quick cash for any crucial situation. You can save that cash out of your income by cutting down your extravagant expenditures such as dinners, watching movies, clubbing, etc.
30) Head Outdoor
Instead of going outside inexpensive hotels, malls, or any other human-made place, you can head outdoor for situations where you do not need to spend anything but relax in peace. You can plan for a picnic, go camping by taking all your stuff with you and enjoy doing bonfire. You would be able to cut down a high cost.
This option is only for the students who are still in school or college. If you excel and score an excellent ranking among all the other students, then you may be even offered a scholarship by your school/college or some external source. This will help you and your parents to save bountiful money in getting your further studies done without incurring any expenses.
32) Pay bills Immediately
Paying off electricity, phone, or water bills after the due date may charge you a penalty fee. To avoid that penalty and save that money, ensure that all your bills are paid in time to avoid any unwanted and avoidable charges. It will even help you to maintain your credit score better and prevent any undue reconnection and disconnection requests.
33) Loyalty Programs
Once you are subscribed to loyalty programs, you can save your money. These programs are conducted by banks and shop owners where you hold an account. You get the loyalty points based on your shopping amount. More shopping amount will be, more will be the loyalty points. You can redeem your loyalty points further in your next shopping.
34) Delegate Chores
Instead of hiring domestic helpers for doing your household chores such as washing utensils, washing clothes, cleaning the home, ironing, etc. You can save the money given to domestic helpers and utilize that money in your personal or family well being by delegating household tasks among all the family members. This will also develop team spirit and bring unity among the family.
Do not shop more than what you have written on your list. However, you should be aware of the deals and special discount offers through which you would be able to buy the same stuff at a discounted price and save the money. You can look for other special offers like buy 1 get 1 offer or any other newly launched company product which you may avail at heavy discounts as compared to the products of the established companies.
36) Avoid Food Wastage
India is one of the suspected countries which is known for wasting food abundantly. There is an idea that more than 16% of the entire world population do not get adequate food, out of which millions remain undernourished.
We can collectively solve this problem by ensuring nothing gets leftover and wasted. If you start cooking prudently and keep all the leftovers in the freezer. It will not only help you save your money but also for the ones who remain undernourished, may get an opportunity to have the food that was getting squandered.
37) Ensure Pests Control
Termites or other pests is the primary cause that might damage your house furniture and certain electronics. Getting a proper pest control yearly contract is not very expensive, and even if it is, it is worth spending that money. It will ensure the long life of your furniture and electronics so that you need not change or replace it. Having said this, it also ensures the entire hygiene and will enhance your overall house presence.
38) Family Health Insurance
We wish that your family enjoys great health, but even if they are, it is still imperative to go for health insurance. Instead of going for personal health insurance, there is always an option to go for family health insurance. Apart from saving money, it will secure your entire family’s health risk under one roof.
39) Home Maintenance
You can save some money if you pay off attention to the plumbing, electrical, and structural condition of your home. Seeing a minor defect can be fixed by yourself if you keep track of household situations regularly (weekly). Not checking off these conditions will let the problem become worse, which will lead to high-cost repairs.
40) Avoid Minor credit
The credits that you often take from vendors, be it at your office, tobacco, or cigarette vendors, often let you go over budget. As these purchases do not keep a proper record of your purchases and your actual consumption. Another disadvantage of minor credits is that it tempts you to consume more regardless of the adverse impact of such stuff on your health. At the time you need to pay off the bills of these vendors, you might face some problem.
41) Home Tutoring
Being a parent, you can help your child in their studies, especially when they are in school, and till the time they are not enrolled for higher studies. These days home tutors charge massive fees per hour, and you can save this money by teaching your own kid, whatever they need to learn, revise, and conducting occasional tests.
Also Read: The Best Online Tutor Jobs in India (2020)
42) Paying Off Liabilities
Taking credit is very easy. Still, at the time of repaying those debts, it might be hard for you to repay the entire amount in one go, such as loan is taken against property, credit for a vehicle, or any other purposes. Whenever possible, step up for installments and try to clear off those debts by paying every month. This way, you will be able to get rid of the loan, and interest will not be compiled on the loan amount.
43) Dispose of Junk
This is one of the tactics which is often ignored by many of us. It won’t let you save money, but it will provide you an opportunity to earn money by disposing of unwanted things present in the house premises such as newspapers, old plastic bottles, cans, broken appliances, torn clothes, d1amaged furniture, etc. Not only for the money but to ensure the cleanliness and aesthetic looks of the house, it is an ideal thing to do.
44) Bill Monitoring
Your house might be deluged with the bills, be it phone bill, electricity bill, water bill, gas pipeline bill, or any other. As a responsible family member, you can check these bills and monthly readings if you are being charged for something mistakenly. You should also keep track of your usage, which will not let you cross your monthly budget.
The money spent on ironing can be saved by regularly or once a week (depending upon your schedule) devoting some of your time to iron the clothes you wear. You may not be saving a lot. Buying a steam press machine will help you save a considerable cost.
46) Socialize Shrewdly
Making too wealthy friends could leave you in big trouble as it may force you to spend too much and go out of your budget. Or even making poor friends is risky as they may borrow money from you, which they could never repay. Both situations are problematic. Hence, it is always advised to socialize astutely and make friends similar to your financial background.
47) Ensure Minimum Balance
As you may already be aware of the bank service charge is applicable in case you are not able to keep the minimum balance in your bank account. You should always ensure that the SMS facility is activated, and your mobile number is linked with the account so you can get regular notifications. You would know your available balance. It will prevent you from paying any extra charge to the bank.
48) Vehicle Maintenance
Ample money could be spent on your vehicle maintenance if any major fault comes up or there is a need to change any engine related part. Ensuring your vehicle’s engine oil, air, and oil filters once in a month would lessen the possibility of making these type of situations jump up.
49) Avail Senior Citizen Perks
Are you cognizant of the Indian Government benefits of granting Rs.2000 to every senior Indian citizen for above 60 years (for male) and 58 years (for female) as a monthly pension? The only condition is that you should be registered as a senior citizen. You may also get an additional discount on railway and airline tickets, medical expenses at selected government hospitals, etc.
50) Avoid Relocation
Until you are not left with any option but to relocate, only then you should opt for this decision to shift your native village or town. Shifting process involves a considerable cost, and it also includes many other disadvantages that you get to know at the time when you have moved, such as saying goodbye to your old neighbors or friends might leave you disturbed for somedays.
It is also not very easy to get acquainted with new people. You may become familiar with them but it is a time-consuming process. You may even end up being defrauded as you are not aware of your neighbors and society members. Hence it is especially not feasible for senior citizens to relocate.
So, these were the 50 ways through which you can maximize your money by using it judiciously and in the best possible manner. These tactics will certainly help you design an impeccable saving money plan. As you all know, saving money is very easy when you know the correct way to achieve it.
If you found these tips helpful in saving your money, you can share some experiences with us in the comment section below.