Save Money Monthly on Low Income in India Saving money is a challenge for many people, especially for those who earn a low income. In India, with rising living costs, inflation, and limited salary growth, it becomes even more important to manage money wisely. The good news is that even with a small income, you can still save and build financial security if you plan smartly.
In this article, we will discuss practical and effective ways to save money monthly on a low income in India.
Why Saving on Low Income is Important. Save Money Monthly on Low Income in India
Emergency Preparedness: Medical emergencies, job loss, or unexpected expenses can come anytime.
Future Security: Savings help you plan for bigger goals like children’s education, marriage, or buying a home.
Financial Freedom: Savings reduce dependency on loans and debt.
Retirement Planning: Even small savings can grow significantly over time with compounding.
- Create a Simple Budget
The first step is to track your income and expenses. Use a notebook, Excel sheet, or free apps like Walnut, Money Manager, or ET Money.
Tips:
Divide income into needs, wants, and savings.
Follow the 50-30-20 rule (50% needs, 30% wants, 20% savings) — or if income is very low, adjust to 70-20-10.
- Cut Unnecessary Expenses
Analyze where your money goes every month. Many times, small unnecessary expenses drain your budget.
Common Expenses to Reduce:
Eating out frequently
Buying branded clothes when local options are available
Subscriptions you don’t use (OTT, gym memberships)
Expensive gadgets and accessories
- Save on Food and Groceries
Food is a major expense for most Indian households. With smart planning, you can save a lot.
Tips:
Buy groceries in bulk during sales.
Prefer local markets over supermarkets.
Cook at home instead of eating out.
Use discount apps like Zomato, Swiggy, or cashback offers wisely.
- Control Electricity and Utility Bills
Utility bills can be reduced with simple changes.
Turn off fans, lights, and appliances when not in use.
Use LED bulbs instead of CFL or tube lights.
Limit air-conditioner and geyser usage.
Opt for prepaid mobile/data plans to avoid overspending.
- Avoid Debt and Credit Card Traps
Loans and credit cards might look helpful but can trap you in high-interest payments.
Avoid unnecessary personal loans.
If you use a credit card, clear dues on time to avoid interest.
Buy only what you can afford with your income.
- Use Public Transport or Shared Commute
Instead of buying or maintaining a car/bike on low income, try:
Public buses, metro, and trains
Carpooling with colleagues
Using a cycle for short distances (healthy + cheap)
- Start a Small Emergency Fund
Even if you save just ₹500–₹1000 per month, keep it aside for emergencies. Over time, this fund will help you avoid borrowing money when unexpected expenses arise.
- Look for Extra Income Sources
Savings alone may not be enough on a low salary. Explore side income opportunities:
Freelancing (content writing, graphic design, data entry)
Tutoring or online teaching
Selling homemade products online
Part-time jobs or gig work (Swiggy, Zomato delivery, etc.)
- Buy Second-Hand or Refurbished Items
Instead of buying everything new:
Opt for refurbished smartphones/laptops.
Buy second-hand furniture.
Use OLX, Quikr, or Facebook Marketplace for deals.
- Invest Small, Start Early
Even on low income, try to invest small amounts monthly. Options include:
Recurring Deposits (RDs): Safe and disciplined savings.
Mutual Fund SIPs: Start with as low as ₹500 per month.
Chit Funds (trusted ones): Local saving options, though riskier.
- Save on Healthcare
Use government hospitals or health schemes like Ayushman Bharat.
Buy a basic health insurance policy (premium can be as low as ₹300/month).
Maintain a healthy lifestyle to avoid unnecessary medical costs.
- Use Cashback and Rewards
Take advantage of cashback apps and reward programs:
Paytm, PhonePe, Google Pay for cashback offers.
Credit/debit card reward points.
Shopping via cashback websites.
Sample Monthly Saving Plan for Low-Income Earners
Suppose monthly income = ₹20,000
Needs (Rent, food, bills, transport): ₹13,000
Wants (entertainment, shopping): ₹3,000
Savings + Emergency Fund + Investment: ₹4,000
Even with low income, ₹4,000 saved monthly can grow into a huge amount over 10 years with compounding.
Conclusion
Saving money on a low income is not about sacrificing everything—it’s about being smart with money. By budgeting, cutting unnecessary expenses, finding extra income, and investing small amounts regularly, you can build financial security over time.
Remember, small savings today can create big wealth tomorrow. Start with small steps, stay consistent, and gradually increase your savings as your income grows.
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