How Much Money Should I Save Each Month?

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Now, this is quite a common question from most of the employed backgrounds. Thinking about the safety of your future, it is said that, “I should be worrying about my expenses”.

Yes, but how? Some questions will surely be roaming around in your head and you must be finding a way out! Don’t just worry about it at all now!

The majority of people think about how to save a good portion of their salary. And some excel in saving it up to quite a few months and maybe years. But still have this confusion about how to deal with your needs and unwanted.

How much money should you save each month is a valuable question, but before that just get an outline of how to save your money.

How to save your money from your Income?

Have a note on where you spend more

Take a pen and a finance keeping diary, or even an app to note all your expenses for a month. Write down all the areas where you spend more and less.

After getting a brief on that, just analyse whether those are necessary for your living, or is there anything to cut short that expense into an even lesser price?

A monthly- budget plan

Okay now, this is something so relevant to the topic. Have a monthly budget plan in your house.

Get an idea of the necessary items and services and keep a constant way of spending the money on the same line.

Don’t overpay or overspend which are not in your budget plan.

Avoid Debt

Make sure your debts are all cleared and nothing is pending. Even the money borrowed from your close friend must be returned. Or else, it could sometimes lead to a bad debt trap!

Is your EMI Pending?

Having a loan or credit card repayments is common and usual. But, pending to make payments back to the concerned area could be risky. Late payment of fees or penalties could cause a huge take on your salary. the amount will be deducted from your salary and will be taken up by the concerned authorities.

Consistency in Savings Account

When you get a hike or an incentive for your hard work, getting a temptation in treating yourself proudly is not so bad. But think about your income and expenditure. 

When you get your salary, be consistent in putting at least 20% of your salary into the savings account.

It would be worth it!

Purchase in a Bulk

Buying your necessities in a bulk could help you have them for a longer period.

Frequent visits and travelling to stores can be minimized. Here, expenses can be cut short.

How Much Money Should You Save in a Month?

Okay so this can be sorted out easily, but applying it might be slightly difficult. But, have to do it!!

There is a rule known as 50/30/20. This rule says that 50% of your monthly salary should be taken for your home needs. Homely needs such as the rent, electricity bill, groceries, tuition fees, medical expenses etc.

The 30% of the monthly salary can be used for your wants. In life, it is sure that you may want your purchasing period. And for purchasing the things you want you can save 30% of your monthly income and spend it for yourself.

The last 20%!

This 20% is what you must save each month from your monthly salary. This should not be used or tempted to be put in for something you might think, could be used for a longer period! No!

This 20% has to be put into your savings pocket.

With that said, there is no specific amount on how much should be saved by an individual in a month. It’s totally up to the earning capacity of the person. But it is advised to save a minimum of 20% of your income in the savings account so that this could grow in a year and could fulfil your future needs as well.

Kumud Sharma

Kumud Sharma is the First Well-Known Female Journalist of the Journalism World of Himachal Pradesh. I am the Founder, Editor in Chief, Managing Director, Promoter of Diary Times. As a Female Journalist, With My Experience of More Than Nine Years, I Tell You Every News of Himachal Pradesh From The Ground Level With Absolutely Accurate and Correct Information, Be it the Politics of Himachal Pradesh or the Ground Reality, My Perspective On Every News Will Give You Assurance. I Assure You That Every News of Mine Will Comply With the Expertise and Fact Checking Policy.