How to Save money from Salary, is a common question to which you will find thousands of answers but let me introduce to you an answer which is practically applicable. Let me put it this way Is it easy to save money from your salary?
The obvious answer is a big “No”. Salary that we receive is after deducting tax and then asking for Savings from salary is unjustified. For most of us, the moment salary is credited to our account, happiness is very short-lived. At the next moment, we get auto-debit messages popping up for EMI’s, Credit card bill settlements, Rent, Electricity bills, Internet expenses, and whatnot. By the time the feeling of receiving salary sinks in, we are hardly left with 20% of our salary. This tragic situation is a part and parcel of everyone. Then how to Save money from Salary would be your next question.
Imagine if there were no expenses to take care of. What if we get the liberty to spend our hard-earned salary completely on ourselves? This seems to be a dream ☹.
But that’s the irony of life!!!
How to save money from your salary?
What if I told you, you could start saving without depriving yourself of your current state of enjoyment? What if I told you that savings from salary are possible with ease?
I know it is easier said than done. But yes that’s where the below things would work wonders for you!!!
Let’s Start the simple process of Saving: –
- Once you receive your entire salary in your account, make a simple habit of not withdrawing it for at least half a day. Am sure that will not be too hard for you. Consider it as starting ritual.
- Make sure you have 2 bank accounts- it’s not at all difficult to open another.
- Next, ensure that you calculate all your monthly expenses. Including rent, petrol, internet, grocery, maids, cooks expenses, mobile/internet, saloon, personal expenses. After that am sure you might be left with 10-20% of your salary. Now transfer this amount to another bank account and forget it. I mean it when I say forget it????
- Now run your monthly show with the remaining amount in your account.
This way you will keep ensuring 10-20% of your salary is saved every month. No need to touch that amount at all. Only if there is an emergency need, you may consider using it. Thus this way you will keep saving every month. By the end of the year, a whopping amount – a little more than your 1 month’s salary will be saved. Please do not blow it off in one go ! let it be there remember keep saving and forgetting it.
Keep repeating the above process and you will find changes in your saving habits !!!
Do let me know in case you have your own way of saving?
- Luxembourg ranks 1st with an 18% saving rate in 2020 (percentage of savings done by households)
- China has the highest Gross Savings $ 6336 Billion in 2019 (Gross savings are calculated as gross national income less total consumption, plus net transfers)