How to Save Money in India in 2024

How to save money in India
How to save money in India

Saving money can be an overwhelming idea, but don't worry, you're not alone. While some people think saving money is a straightforward endeavor, a lot of people have nothing saved at all. 

Spending money is objectively more exciting, but you should consider saving money a priority. Saving money isn't always about making sacrifices, either. 

Sometimes, to start saving money you simply have to become more aware of your finances and spending habits. With a better understanding of your budget and your true needs, you will save more money than ever expected. 

So keep reading on to understand how to save money in India.

Why is Saving Money Important?

Unless you're famously wealthy, big expenses in your life will require financial planning to purchase. You should remember what you're saving for to help keep you on track and avoid unnecessary expenses. For example, it'll be a lot simpler to not order that pizza and make food yourself if you remember you need to save money for your child's college fund.

Consider that you will need to save up for expensive necessities like a home and a car. It will be a good idea to start saving for them even if you don't plan on purchasing one in the near future.

Finally, it's essential to save money for retirement. A lot of people are not able to save enough money for retirement, mainly because they don't practice good money-saving techniques from a young age.

At the end of the day, money saved is money earned. Below are some of the easiest, non-technical tips to save money in India that anyone and everyone can implement starting today itself.

1. Switch to a cheaper data plan

Public Wi-Fi hotspots are available in most places now, so you can switch to a much lower data plan than what you are currently using. You should also consider getting a Wi-Fi connection at home, which will save money in the long term for the whole family. If everyone uses a data plan individually on the mobile phone, the total cost is pretty high. 

For example, I personally use a prepaid connection and my three monthly recharges cost me around ₹500, which translates to ₹166 per month. But since I am an avid online gamer, my monthly data top-up recharge goes up to ₹400. 

Thus, my monthly mobile cost goes over ₹566 per month. Add the cost of my monthly mobile bills to my parents (they have multiple post-paid numbers), which is around ₹1200. So, the total monthly cost incurred on mobile phones was around ₹1766.

Thankfully, recently we have shifted to Airtel broadband (unlimited data @40 Mbps) at just ₹799. Now, I am not topping up for additional data anymore :) 

After my parents go for the lower rental plans, we should be saving around ₹500 per month, which is ₹6000 per year! 

How to save money in India

2. Share entertainment bills

We are living in the age of streaming. There are a number of streaming platforms that have become an integral part of our daily lives. It is impossible not to mention the name of Netflix and Spotify here as I personally use both of these services. 

Well, if you must watch your favorite programs on these streaming services, pool the bills with your friends.

3. Switch to online TV

A lot of data and broadband services like Airtel offer a live TV streaming service for free. Moreover, so much content is available on YouTube, including live news. Then there are mobile apps for most news channels. 

Make the most out of them and say goodbye to the TV bills!

By the way, since the time we moved into this new place in Dehradun, we haven't gone for the good old Tata Sky or local cable TV network. And to be frank, we are pretty happy to be using our mobile phones to watch our favorite shows. 

4. Switch to LED bulbs

Did you know that LED bulbs led to savings of ₹50,000 crores for the Government of India in annual electricity bills in 2019? Now, there are loads of LED lighting solutions, like tube lights that consume less than 50% of electricity and last longer than normal tube lights. 

Go and find the best LED lighting solutions for your home and office and save energy for yourself and the nation! The value of the old adage - a penny saved is a penny earned can't be overemphasized. 

5. Ditch the newspaper

We read newspapers just because we are used to it for years now. There is already so much information overload through the internet and online TV. Is there really a need to read newspapers? Well, not really!

There are dozens of great news apps on your phone, no reason to keep paying for the newspaper anymore. 

Maybe, you could plant 10 saplings every month instead of paying for the newspapers, that go to the kabaddi anyway! Think about this.

6. Time big purchases around sale periods

There are certain purchases that we cannot plan but there are many that can certainly be planned around big sales, especially big appliances, phones, clothes, and accessories. It is not too difficult to grab discounts ranging from 60-80% during these big sales. 

Keep your list ready well before these big sales so that you don't miss out on buying your favorite article. 

At the same time, you are well-advised to practice the art of minimalist living. COVID-19 is one of the ways through which mother nature is conveying the message of simple and minimalist living that humans should adapt to co-exist in perfect harmony. Think about this!

How to save money in India
How to save money in India

7. Redeem that cashback

Most banks, in conjunction with credit/debit card companies like Visa, Mastercard, and Rupay, offer attractive cashback offers to their clients. Many of us do not take these offers seriously whereas, the points are equivalent to cash that can be redeemed in different ways.

Similarly, many payment apps like Google Pay offer cash rewards on each transaction. These amounts apparently look small, but that's free money where you are not making any effort to earn it except by using the app for your transactions. 

8. Set short term goals

Make a weekly goal of saving money, it could be as little as ₹1000 every week, once you add it up long term, you'll have saved up ₹54000 a year. 

To save weekly, maybe it is a good idea to have an RD (Recurring Deposit) or SIP plan. You will also get the benefit of compounding if you save every week and actual yearly savings will be much more than ₹54000! 

Use this simple trick and start saving for your long-term savings goals from today itself!

9. Track your spending

We have a tendency to spend on things that are neither required nor budgeted. This is called binge buying. To keep a tab on binge buying take the help of technology.

Most banks have mobile apps that help you plan your daily, weekly, or monthly spending. Apps are not only for entertainment, get in sync with technology when it comes to saving money. 

Once you actively start tracking the money you're spending, you will be much more mindful of your financial habits. 

Get started today!

10. Avoid a poor mentality

Last but not least, having a healthy relationship with money is very important. Trying to cut costs on groceries and electricity will only get you so far. 

Having a poor mentality will only bring you financial struggles. Remember, your thoughts become reality. You can actually become rich if you truly believe and behave like one. 

Think abundant, be abundant.

Final thoughts

Well, the above-mentioned 10 ways should have given you a good idea of how to save money in India. These might be simple tricks but they can be a good starting point to begin your savings journey. 

Try to implement these from today itself, they won't cost you a dime but definitely help you in getting the right groove.

If you still have questions, please feel free to comment below. I would love to hear back from you.

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