Top 10 ways to save your money with ₹20,000 Salary

Managing money can often seem like a daunting task, especially when your income is limited. However, regardless of the amount you earn, wise financial decisions can help you achieve your monetary goals. If you're drawing a salary of ₹20,000, the good news is, you can still save a good amount with some dedication and planning. Below are ten effective strategies to help you save money:

1. Budget Your Expenses

Start by creating a budget. Write down all your monthly expenses such as rent, utilities, groceries, and transportation. Deduct these fixed expenses from your ₹20,000 salary. This will give you an idea of how much money you have left for savings and discretionary expenses.

2. Cut Down Unnecessary Expenses

Identify areas where you can cut down expenses. Do you dine out frequently? Maybe you can reduce it to once a week. Opt for public transport instead of regular cab rides. The savings might seem small, but they add up over time.

3. Automate Your Savings

Open a recurring deposit or a fixed deposit account. Set an auto-debit from your savings account, ensuring a certain sum is saved every month. This way, you'll prioritize savings, and it will discourage impulsive spending.

4. Avoid High-Interest Debts

Steer clear of high-interest debts like credit card balances. They erode your income due to heavy interest rates. Always pay the full amount due on credit cards to avoid interest. If you have debts, create a plan to pay them off.

5. Opt for Second-hand Items

Instead of buying brand-new items, consider purchasing second-hand or refurbished products. Websites like OLX or Quikr can be platforms to find some good deals. Always ensure the item's quality before purchasing.

6. Limit Luxuries

While it's tempting to indulge in luxuries, it's essential to differentiate between 'needs' and 'wants.' Maybe you don't need the latest smartphone or those branded shoes. Be selective in your indulgences and opt for them only when you have saved enough over a period.

7. Cook at Home

Dining out or ordering food frequently can make a significant dent in your pocket. Cooking at home is economical and healthier. Batch-cook during weekends and freeze meals. This way, even when you're too tired or busy, you won't be tempted to order food.

8. Educate Yourself about Finances

Knowledge is power. Read up on personal finance, savings, and investment. Websites, books, and courses are available that can guide you in managing your money better.

9. Start Small Investments

With the amount left after your monthly expenses, consider investing in mutual funds or stocks with a small amount. Systematic Investment Plans (SIPs) can start with as low as ₹500. It's not about how much you invest but how regularly and wisely.

10. Emergency Fund

Life is unpredictable. Medical emergencies or sudden job losses can derail your finances. Save at least three months' worth of expenses in a separate account. It will provide a cushion during unplanned financial challenges.


The key to saving money, especially with a ₹20,000 salary, is discipline and continuous evaluation. Regularly revisit your budget, cut down unnecessary expenses, and prioritize savings. Remember, small, consistent efforts lead to substantial financial growth. The journey might seem slow, but with perseverance, you'll achieve your financial goals.

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