Managing your finances on a salary of less than ₹25,000 may seem challenging, but with the right plan, you can still save, invest, and live comfortably. The key is to budget smartly, control expenses, and make your money work for you.
1. Create a Realistic Budget
Follow the 50-30-20 rule:
50% for needs (rent, food, transport, bills)
30% for wants (shopping, outings, entertainment)
20% for savings & investments
👉 Example on ₹25,000 salary:
Needs: ₹12,500
Wants: ₹7,500
Savings: ₹5,000
2. Cut Unnecessary Expenses
Limit food delivery & outside coffee/snacks
Cancel unused subscriptions (OTT, gym, apps)
Use public transport instead of daily cabs
3. Build an Emergency Fund
Even with a low salary, aim to save at least ₹500–₹1,000 monthly in a savings account or liquid fund. Over time, it creates a buffer for medical or job emergencies.
4. Start Small with Investments
You don’t need lakhs to invest. Start with:
SIP in Mutual Funds – as low as ₹500/month
Recurring Deposits (RDs) in banks/post office
Digital Gold / Sovereign Gold Bonds for inflation protection
5. Manage Debt Smartly
Avoid credit card overspending
Pay EMIs on time to avoid penalties
If you already have loans, try to close high-interest ones first
6. Choose the Right Bank Account
Opt for zero-balance savings accounts with no charges. This avoids unnecessary deductions from your salary.
7. Use Cashback & Reward Apps
Pay bills via UPI, Paytm, PhonePe, or credit cards that give cashback. Redeem points for vouchers or discounts.
8. Focus on Skill Growth
The best way to improve finances is to increase your income. Take free/low-cost online courses to upgrade skills and aim for a salary hike or side income.
Quick Tips Recap
Follow the 50-30-20 rule
Save even small amounts
Avoid unnecessary debt
Invest through SIP/RD
Build skills for higher income
❓ FAQs
1. Can I save money on a salary below ₹25,000?
Yes, even saving ₹1,000–₹3,000 monthly makes a difference long term.
2. What’s the best investment option for low salary earners?
Start with mutual fund SIPs or recurring deposits.
3. Should I focus on savings or skill growth?
Both are important—save regularly but also invest in skills to grow income.
Published on : 28th August
Published by : SMITA
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