How to save money in India ?
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6 daily hacks to save 10,000 rupees per month (plus some more!)

Household savings in India has dropped to 16.3% in 2018 from 23.6% in 2012. Even the overall savings rate has declined to 30% from 34.6% over the five- year period ending 2016–17. It is no surprise that in this age of hyper marketing, saving is becoming harder and harder. More so when an entire industry is busy making consumption (and spending) glamorous and sexy, and the entire mainstream discourse is surreptitiously linking your social status to it.
It would be worthwhile to look at one stat here — in the last decade when India’s gross savings rate has dropped, the market cap of companies like Bajaj Finance who are providing cheap credit to consumers to encourage spending and consumption has increased by (hold your breath) around 500 times.
So the essence is, in such a scenario it requires conscious, consistent and well directed effort to ensure that an adequate part of your earnings flows towards saving for your medium term and long term goals. Here we try to enumerate some daily hacks which over the long run, could result in significant savings. Remember, just like a small leak is enough to sink a big ship, no saving is small.
1. Take the bus!
Apart from saving time, using public transport yields significant financial savings. I understand it’s not possible in all cities in India but wherever possible, take the bus/ metro/ local. A routine 30km a side Delhi Gurgaon run would set you back by ₹ 360 in fuel expenses while it’ll cost only ₹ 120 by metro, that’s approximately ₹ 5200 rupees per month saved!
Savings per month so far : ₹ 5000
2. Do you really need two cars?
Ever wonder how much your car costs you compared to an Uber ride? Let’s look at it.
Insurance: ₹ 25k per year or 2k / month
Maintenance cost: ₹1200/year or 100 / month
Parking: ₹ 5000/year or 400 / month
Cleaning/Misc expenses: ₹10k or 800 / month
Fuel costs: ₹ 10–11 per km for 500 km or 5000 / month
Total: ₹8000 / month (This is the lower range)
vs Uber Cost: ₹7000 (₹ 125–150 for 10kms)
This is not even taking into account the cost of accidents, plus the headache of keeping a car, time wasted in driving etc. Even if approximate it to ₹500 per month (which is the least possible amount), the total savings are ₹8500–700 or ₹1500 per month.
Savings per month so far : ₹ 5000 + 1500 = 6500
3. Invite over than go out
This one’s simple. The next time, instead of going out to that fancy bar to party, invite your friends over. At the very least you’ll avoid heavily marked up prices and taxes (service charge/ VAT) , not to talk about the tips, parking charges, fuel savings, etc. At a normal bar, drinks+dinner for 5 persons would easily cost ₹6500–7000 while at home, it’ll only cost around ₹2500–3000. So, if you have 2 such get togethers per month that’s 1500 bucks per person saved.
Savings per month so far : ₹ 6500 + 1500 = 8000
4. Prepare shopping lists and stick to them
A little work before you go to the grocery store can go a long way to help you save money. Check your pantry and make a grocery list, then search for discounts to minimize your bill. If you don’t have a ready list then chances are that you’ll roam around the aisles and buy that extra tub of ice cream or that enticing chocolate worth 250 bucks each. Monthly saving: 1000 rupees on 4 such visits per month.
Savings per month so far : ₹ 8000 + 1000 = 9000
5. Procrastinate, always
Use the 7 day rule here. In case you really feel like buying the amazing shirt that you came across online, put off the decision by 7 days and if you still feel like buying it then go ahead and buy. In these 7 days your mind will get rid of the initial impulse and rational thinking will take over. Even if you forego buying 1 such transaction per month, that’s 2000 bucks saved right there.
Savings per month so far : ₹ 9000 + 2000 = 11000
6. Don’t save your card details in online accounts
One reason why impulse buying has gone up several notches is because payment has become so easy and flexible. Not having the payment details saved in the online accounts will force you to make that wee bit of an extra effort to complete a transaction. This little effort will go a long way in reducing impulse buying. One extra trick to achieve this is to use debit instead of credit card, because spending with latter is easier since you don’t have to pay it then and there, leading to more impulse buying. Considering average online food order size of 250 rupees, even if you are able to let go of 4 such orders its a saving of 1000 rupees per month.
Savings in total : ₹11000 + 1000 = 12000
All these tips above can save you close to ₹12000 per month; some may not apply to you or you may already be doing them (good job!). And there are some which are too difficult to follow. You might not feel like going by bus or forgo going out every weekend for a quick drink. We get it; try to follow the other ones. Even if you do 3 or 4 out of the 6 above, you can still save 8–9k per month which is a lot of money that can grow your savings. Also, there are bound to be cheat days and mistakes, but it’s most important to start on this journey of saving and living within means.
Got some of your own hacks? Please share them here in the comments section below. We would love to hear from you!
I am an independent financial advisor at Finvise and we are soon launching an app to simplify the way you get financial advise. We are now inviting new users on an invite only basis. Please sign up here if this interests you.

