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#6 Best Saving Money idea for Salaried Employees

Saving money is something that every person should be habitual of in the current inflation. But, the major concern for many of salaried is how to save tax on salary. Most of us, thinking about work, assignments, increment, and all kind of responsibilities but forget to invest our saving in a proper effective way.

Being on pay-check to pay-check and relying on the credit cards to pay even for the essential requirements of living is a natural scenario now. However, many of us tend to save less but spend more.

But how can we solve this problem? There are some very fundamental but effective ways that you can understand and start thinking about saving money. First, let start by giving some of the money saving tips.

1. Always Record Your Expense

Recording your expense is the first step that you must start from right now. Don’t consider this as a job, but take it just as a habit. This is as simple as you check your social media status frequently.

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Try to keep a check and record all kinds of expenses you have made daily. In this way, you will have an idea that how much you are spending and where you need to limit your expenditure.

Certainly, you can use a pencil and paper. But, I prefer mobile Apps. There are lots of useful apps available in Google Play. Choose any of it and start record your expense. If you do it sincerely, then I can bet, it will be highly effective.

2. Try to Spend Less and Save More

The key to reducing your expenditure is to cut back a little in each section. Therefore, we can start with simplifying our life.

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So, presently sit back and think that how can you limit all your extra and unnecessary spendings. Is this hard? Very hard, I know that. But I believe,

The definition of insanity is doing the same thing over and over again and expecting a different result.

If you want different results, then you have to try a different approach. So. the things you did yesterday, have brought you to the life you have today. But, if you want something different, you have to do something different today. Only that create a different life tomorrow. There’s no other way to get there.

So, reconsider your spending and savings.

3. Make a Budget

Creating and maintaining a realistic budget always helpful to figure out what our long-term goals and motivated us to work towards them.

A budget will help you to realize the difference between needs and wants. So, you will often ask yourself – do I really need to buy this? That will make a difference.

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Moreover, creating a budget will help you to know that exactly how much money you actually need on a monthly or weekly basis. So, if you have a transparent view of your overall financial picture, you can quickly shift your focus to eliminating debts and start building wealth.

There is a thumb rule for every salaried person: at least 20% of your income should go towards savings. More is fine, but less is not advised.

At least 20% of your income should go towards savings.

4. Have Financial Goals

Regardless of what stage of life you are now, you need to have some short and long-term personal financial goals.

Try to visualize what all you want to have in the next five to ten years. It may be a house, a vehicle, a dream vacation, college savings, retirement savings, and an emergency fund. So, accordingly start saving with that as an end objective.

A budget is telling your money where to go instead of wondering where it went. – Dave Ramsey

Therefore, you can target your financial goals by categorizing into time frames. Firstly, determine what your short-term, mid-term, and long-term objective. So, this will give you a very systematic and realistic approach to your financial goals.

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If you are married, then it is absolutely essential that you and your spouse both participate the same financial goals mutually. Otherwise, it will be quite hard to achieve. So, develop your financial plans together, and review your progress together to make sure both of you are contributing to the same view.

5. Open a Piggy Bank at home

Piggy bank is the symbol of savings. It actually does cultivate one of the best habits necessary in all human beings – wise spending and more saving.

If we have free cash in our wallet, our mind gives innovative ideas of spending it on trivial things. It’s very normal. So, we start spending and most of the time this entry in our monthly budget. So, first, we ignore it. But, day by day it’s become a habit.

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But there must be some control. We must realize that any set of impulsive spendings is not good. So, it is better to plan for it. How to think?

The whole family can save anything from small coins to big notes to in a Piggy bank to fund the cause.

This type of exercise makes a couple of improvements. First, the family realizes that, if they want to buy a big thing it required effort and patience. Secondly, the kids will learn how to fight the temptation of immediate gratification.

So, Piggy bank is not only a child’s thing. Let, make it a habit of you and your family as well.

6. Start Investment

A salaried employee is always looking for returns that offer him safety, along with tax benefits and liquidity. There are many ways to invest your hard earn money to get the best returns.

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SIPs of Mutual Funds

Systematic Investment Plan or SIP is a good way of investing. This is a one-time investment option with which you can invest monthly to earn good returns on your investment. The minimum amount of investment in a SIP is as less as INR 500. That’s why it becomes a very convenient investment option for even a youngster nowadays.


 Equity-linked Saving Schemes or ELSS is another promising investment option. This is a tax saving mutual fund scheme with a minimum lock-in period of three years. The minimum amount that you can invest is INR 500 without any upper limit. But the maximum liable deduction under section 80C is INR 1,50,000.

Read also: Planning for New Financial Year 2019-20


National Pension Scheme or NPS is a good idea for your early retirement planning. As because there is no direct tax exemption during the time of withdrawal as the amount is tax-free as per Income Tax Act, 1961. So, this is another very convenient forms of investment. Under NPS, you can deposit a minimum of INR 500 per month or INR 6000 yearly.

Read also:What is NPS (National Pension System)? NPS Contribution, Schemes, Tax Benefits & Login


We all know very well about this. You can park your money for a minimum period of 7 days to a maximum of 10 years in a bank to make an FDs. Banks generally provide 3% to 9% per annum interest rates on fixed deposit or FDs.

On other hands, if you have a habit of saving monthly, then Bank Recurring Deposits or RD is a very good option for you. They also have a minimum of 6 months to a maximum of 10 years tenure. Their interest rates are around 8% per annum.

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Stock Market

Open a Demat account, and you can start investing in the stock market. Nowadays, brokerages are also very affordable for us. You can invest your money in a value shares for a short term or long term.

Read also: Why should we make investment in stock market?

There is a number of shares are available that give more than 20% annual returns. But, do not forget that high returns mean high risk. The stock market is always volatile. In spite of everything, if you start investing at an early age of life, you can develop a lifelong habit of savings.

Read also: The Benefits of Investing at an Early Age in Stock Market

Investing also allows you to significantly grow your money over time with the power of compound returns. So, nothing can be better than that.

Bottom Line:

If you would be wealthy, think of saving as well as getting. —Benjamin Franklin

Saving money is just the beginning. If you want to become wealthy, you have to start investing in the right way along with savings. In another post, I will discuss how to invest your money. In this article, I just want to focus only on the ways of saving money, especially for the salaried employee. But, you can’t invest money if you do not save.

I hope, these saving money idea for the salaried employee will be helpful. So, start saving from today.

Please leave your queries in the comment section and let us know your views regarding this post.

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