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How to Plan Savings from Salary?

How to Plan Savings from Salary?
  • 13th Jun 2022 |
  • 3,415

We all know that having a savings plan will serve as a road map for wealth creation and better financial stability in your life, and when you are a salaried employee, your source of income is stable and fixed. Now, the question is how to save money from salary every month? If you create a savings plan after proper financial research about your expenditure and financial commitments, you can certainly ensure a safe and financially stable future for you and your loved ones.

How To Save Money From Salary Every Month?

For every salaried employee who is seeking an answer to questions like how to save money from salary every month or what percentage of salary should be saved, the basic and foremost solution is having a simple savings plan that includes all the aspects of savings and wealth creation. However, just having a plan won’t save you money until and unless you don’t dedicate yourself to implementing it in a disciplined manner and show commitment to it. Especially for those young adults who have just joined the professional grounds and are thinking about what to do with first salary, the right choice would be to take a step forward towards savings and start building a habit in the early years of life itself.

Best Ways to Start Saving Money from Your Salary

Saving money is an important aspect that everyone should incorporate into their life. It not only helps you in attaining financial stability but also serves as a valuable backup in case of an emergency. Hence, it is advised you must start saving as early as possible in your career. If you are thinking about what to do with first salary, a good call would be to start saving, no matter how small the amount is.

Here are the best ways to answer all the questions related to saving money from salary:

1. Be reluctant to take money out of your wallet/digital wallet

Incorporate this rule in your life if you want to save money from your salary. This will not only help you in saving more money but will also help you in being reasonable with your expenditure. The more you control your expenses, the more you think about them, and the more you save. So the next time you go to the market and get lured by a product, you will be extra careful. This will force you to think about the requirement of the product/service and its urgency.

2. Make a budget to suit your needs

Budgeting will help you get an insight into your monthly expenditure and financial commitments. Not only this, but it will also help you in evaluating and understanding your unnecessary monthly expenses. If you find yourself asking the question of how to save money from salary every month, then having a monthly budget is a good place to start.

3. Implementing the budget and following it strictly

You must ensure that the goal of your budget is to save a good amount of your salary. Once you have a savings-focused budget, all you have to do is sincerely follow it and allocate a dedicated cash amount to yourself every week for miscellaneous expenses like pocket money. This will help you in controlling your expenditure and, at the same time, it will also help avoid unplanned expenditure.

4. Avoid the Penalty Charges

Once you start your savings, ensure that you don’t have to pay even a penny extra as penalty charge. Be proactive about your EMI deadlines and other billings and make sure that you pay your dues on time.

5. Start investing in smart savings products

Investment is a very important aspect of saving money from salary and helps largely in wealth creation over time. Additionally, with some modern investment tools, you also get security for emergency situations. For example, a savings product that offers both the option of investment & insurance in one product.

Some Popular Saving Investment Options to Consider

  • ULIP (Unit-Linked Insurance Plans)
  • Guaranteed Savings Plans
  • Mutual Funds
  • Fixed Deposits
  • Recurring Deposits
  • Public Provident Fund (PPF)
  • Employees Provident Fund (EPF)

Now that you have the answer to “how to save money from salary every month?”, you must start saving money from your salary as soon as possible. Remember - small beginnings will compound into bigger results. It will help you in build better habits in the long run as well!

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