How to save money in India

How to Save Money: 21 Effective + bonus tips [2021]

“There is a gigantic difference between earning a great deal of money and being rich” — Marlene, An American-German singer and actress.

More Money = Better lifestyle+ better future = Rich

Is the equation is as simple?


The thing that creates a difference between warning a great deal of money and being rich is “Saving Money”.

We all know that a little drop of water makes an ocean. Similarly, a little weekly or monthly savings can make you wealthy and rich.

Why don’t people do that?

Some side tells they don’t have enough money to save. And the other side claims Why do we earn if we can’t lead a decent life? That’s also right. 

But there are ways you can save money without compromising your lifestyle and cutting the budget. 

In this article, I will show you how to save money without compromising your necessities, entertainment and your lifestyle, and your family’s lifestyle.

Read: 11 Actionable Ways Make Money [Without Scam]

Why savings is important?

Saving is important because it helps to protect you from a financial emergency. 

The other benefit of savings are it secure future, helps to pay for large purchases, avoid debt, reduce financial stress, helps to build children’s future bright, fulfill dreams, and many more. Most importantly if you have a decent amount of money, you can have peace of mind (if not others). 

How to save money : No. 1

Create a budget

Create a list of things that are necessary for you and make a list of which Things can be compromised. Also compiled a list of the source of earning, include every little earning. After finalizing the list follow the 80/20/30 budgeting. 

  1. 80 per cent of your income should go to an essential expense like groceries, rent and tuition fees of children.
  2. 20 per cent of your income should go for savings it may be a mutual fund, fixed deposit, and insurance or simply in a savings account.

How to save money : No. 2

Follow short term strategy of savings

To accomplish any big task or long-term goal, short-term actions are more effective than a long-term target. 

First target saving weekly, then go for monthly and finally yearly. When you will achieve the target in the first three weeks in a month, you will get a driving force to continue for the last week or the fourth week of a month. 

Suppose you decided not to go to a party every weekend and you skipped for the week and went in the next week. And again skipped in the third week. After a certain time, you will think, is the party is necessary for you? No, Why? Because you skipped for a couple of weeks and you are fine. Most importantly you saved the money used to spend at the party. That’s the way of saving money with a short time goal

Others are reading: How to make money from a blog?

How to save money : No. 3

Save automatically

 Nowadays almost everyone has a bank account. Right!

At the starting of a monthly salary is credited to your account. You withdraw the whole amount from atm or bank. You may think that first you spend on the necessary things and will save the money at last. But this is not the right way. Open a second bank account and transfer 20% of your salary from the salary account to the second account. 

If you deal with an offline business, you can deposit a certain percentage of income to a bank account manually. 

Ways to save money: No. 4

Use credit/debit card

Credit and debit card

I am encouraging you to spend through credit or debit cards because you can earn cashback by using them.

Amazon, Flipkart, Gofers, JioMart, Spencers almost all companies offer cashback on payment through debit and credit cards. 

The use of debit and credit cards is hassle-free. You may have to spend extra money on maintaining the cards but the amount is so less compared to spending. 

Ways to save money: No. 5

Use coupons


There are a lot of coupon sites and apps that provide offers from various platforms. If you are avoiding them, I think you are doing something wrong. Sometimes, the apps and websites offer up to 50% of bill payment and shopping. Suppose, you have to buy some groceries that are supposed to amount to 10,000 rupees. If they offer 10% then you will save 10% of 10,000= 1000 rupees. 10% matters when you calculate them for life long. 

Paytm, Mobikwik, Amazon Pay, PhonePe, Google Pay are the popular apps in providing offers on service, purchase, bill payment, etc. 

Ways to save money: No. 6

Use apps for payment

Payment apps

I have discussed how apps offer cash back on purchases. Payment apps now offer money transfers and payment. One of my relatives owns a scratch card that pays him 7% cashback on the transfer of 25000 and above. 7% of 25000 is Rs 1750. If an image the benefit, firstly, you don’t need to travel anywhere, secondly money is transferred instantly, thirdly you earn money within seconds and most importantly your relative get benefited from you. 

Opening a bank account is not a big deal nowadays, even some banks open savings accounts for free. After opening an account connect them to payment apps. 

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How to save money : No. 7

Use interest-free EMI

Mostly interest-free EMI’s are available on credit cards. Nowadays Flipkart, Amazon are offering interest-free EMI options. 

A 12% simple interest on a consumer loan for 1 year on Rs. 10, 0000 comes to Rs. 12000 that you can save when you opt for interest-free EMI.

How to save money : No. 8

Rethink about the mobile bill

Almost everyone has to pay the mobile bill every month or after three months or yearly. If three of your family members use mobile, you have to pay for all of them. Many use postpaid plans for better mobile data packs and subscription offers. Sometimes you need not such offer, why do you pay for them? Switch to prepaid service, if you need more Internet, you can take broadband service available in your locality. And again use bill payment apps for cashback and hassle-free transactions. 

How to save money : No. 9

Change D2h or TV cable plan

I know you don’t have time to watch TV, you pay D2H or cable bill for your family. Initial plans D2H and Cable plans include a lot more channels you don’t watch the time. Why do you pay for them? Customize the channel list and select those channels that you/ your family love to watch. Every D2h and Cable service provider gives the option to customize the channel as per user choice. You can do these tasks from individual apps or contact the service provider. 

Ways to save money: No. 10

Cut LPG bill

I think LPG is not a good option for those who want to save money. If you can cook a preferred recipe with spending less and risk-free, what can be better than this?

An induction cooker is the best replacement for LPG. Induction uses less Electricity and it has a low maintainable charge. 

Ways to save money: No. 11

Make an online booking for travel and accommodation

Traveling and hotel booking costs higher money. Online booking websites,, offer a huge discount on traveling costs. If you book these from any agent, they charge you extra cost and most importantly you have to be dependable on them. So, learn these small tasks, these small things will help you to cut expenses. 

Ways to save money: No. 12

Save Electricity Bill

Electricity bill is a necessary expense of every household. I paid Rs 7250 online as an electric charge in a month. That struck me, I searched how to reduce electric bills and found a lot of ways. I applied for them, in the next month and the next month I only paid Rs 5000 as an electric bill. 

Here are some tips for you to reduce electricity consumption.

How to save money in India from electric bill

How to save money : No. 13

Cancel unused subscription

Magazines are useful for knowledge. Think, do you have time to read a magazine? You subscribed for Netflix, Amazon Prime, Hotstar, MX Player. I know it is not possible for a person to watch films or web series from all those platforms. Why do you pay for, if you don’t use them? Cancel unused subscriptions and stick to the platform you loved most. 

How to save money : No. 14

Maintain quality not quantity

Give importance to quality than quantity. Sometimes, it may seem costly to buy a thing, but it provides service for the long run. It is better to buy a good quality costly shirt than two cheap shirts. The costly shirt gives comfort and is good-looking also. So it is a wise decision to maintain quality than quantity. 

How to save money : No. 15

Buy at grand sale offer

“Amazon” offers a huge discount in “Great Indian Sale” similarly “Flipkart” doon “Big Billion Day sale”. They offer huge discounts ranging from 5- 50% on every product from electronics to cosmetics. It is a wise decision to purchase necessary things on these sales. 

Ways to save money: No. 16

Avoid buy two, get one offer

Marketers apply strategies to attract customers. I remember I went to a shopping mall and fell into the trap of buy two and get one free offer. 

I was able to use only one pair of pants bought in the offer. Because other pants were the same types and became short for me. If you avoid these offers, you can save a lot of money from your budget. 

Ways to save money: No. 17

Ask for annual fees’ waiver

Credit card companies charge annual fees from every customer. If you use your credit card properly and are a loyal user, you can ask a credit card provider for waving off the annual charge. The annual fees of credit cards range from Rs 499 to Rs 4999 as per the quality of service. Sometimes they offer coupons for purchasing, you can redeem them for cashback. 

Ways to save money: No. 18

Start saving tax

There are various ways of saving tax. The government also encourages various investments and options to reduce the tax burden. Consult with a tax advisor about how to reduce the tax amount. Investing in a mutual fund called ELSS help to reduce tax amount and it is a very good option for saving money. 

How to save money : No. 19

Saving from vehicle maintenance

Whether you own a two-wheeler or four-wheeler, vehicle maintenance costs a major part of your yearly expense. If you do some tasks including:

  • Change Oil and Oil Filter Regularly
  • Check Tire Pressure Regularly
  • Keep Your Engine Air Filter Clean
  • Get Car Tune-Ups As Needed – Not A Day Later Than Scheduled

It can help to maintain your budget. 

How to save money : No. 20

Learn to bargain


Almost everywhere bargaining is available. I know you bargain at the vegetable and fish shop. Why you don’t bargain at a shopping mall and food center? If you are a regular customer, ask for a discount. I am sure they will consider your request for a discount. It is your need, so you have to learn how to negotiate. And, you should not be ashamed of while bargaining, because they may cheat you by rising outstanding amount. 

How to save money : No. 21

Prepay outstanding loans

At the time of the festival you get an extra salary as a bonus, sometimes get an incentive from your company. Use the bonus amount to pay off your existing housing loan, car loan, and personal, if any. You can reimagine your future when you are debt-free, otherwise, you have to bear the extra tension of heavy loan amounts. 

FAQ on how to save Money

➦ How to save money as a student?

If you start saving money from student life, you can make your future more bright and shiny.
Ways to save money for students:
1.Use the second handbook if the book seems not so useful to you.

2. Pay bills on time to avoid the extra cost of a fine.

3. Stay in the shared room so that you can divide the rent of everything you use.

4. Ride-on public transport instead of hiring a taxi or cab.

5. Limit on buying expensive things, remember it is time for building the future.

➦ How to save money as a housewife?

Housewives’ activity on saving has a major role in the future of a family. If a housewife starts earning and saving, it will be more effective than a male family member plans. Tips for saving money for Housewife:
1. Teach your children from your own side.
2. Earn some extra money. (Click here to learn Blogging to earn extra money)


You have read the article on 21 ways on how to save money. Now, it is your turn, until you make the habit of saving, no one will build your future. Money-saving habit does no build in a say, it is the result of determination for a long time.

I know many persons whose monthly income is very less, but they don’t have tension for the future because they thought about their future a long ago. On the other side, many people leading a stressful life instead of having a handsome salary because they have no emergency fund.

Blogging is one of the most effective ways of earning a side income. Click here to learn how to start a blog and make money from it.

Summary of this article: How to save money:

  1. Create a budget
  2. Follow short term strategy of savings
  3. Save automatically
  4. Use credit/debit card
  5. Apply coupons
  6. Use apps for payment
  7. Use interest-free EMI
  8. Rethink about
  9. Change D2h or TV
  10. Cut LPG bill
  11. Make an online booking for travel and accommodation
  12. Save Electricity Bill
  13. Cancel unused subscription
  14. Maintain quality not quantity
  15. Buy at grand sale offer
  16. Avoid buy two, get one offer
  17. Ask for annual fees’ waiver
  18. Start saving tax
  19. Saving from vehicle maintenance
  20. Learn to bargain
  21. Prepay outstanding loans
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