Saving up even Rs. 3000 per month from a salary of just Rs. 18,000 can be worrisome, but with financial discipline and strategic planning, it is possible. This article will talk about how you can start saving money regularly by following a budgeting and spending plan while working toward savings goals and building a cushion for the future.

Let us understand what the 50/30/20 budgeting rule is:

• 50% for basic necessities: This consists of money set aside for house or rent, utilities, food, and petrol or transportation.
• 30% for other expenses: That is, expenditures for fun and entertainment, going out to eat, hobbies, or any other spending that is not necessary.
• 20% for savings and investments: That is where saving, investment, or paying off debt goes.

The 50/30/20 budgeting rule can be used to achieve a better control over the expenditure and ensures you save a percentage of the income every month.

For example, if you earn Rs. 18,000 per month, then the distribution would look like this:

• Necessities: Rs. 9,000
• Other expenses: Rs. 5,400
• Saving and investments: Rs. 3,600

• The 50/30/20 budgeting rule will be helpful while distributing your income in such a manner so that your savings are consistent.
• By recording your expenses and cutting down on discretionary expenditure, more savings can be done each month.
• An automatic savings plan that is set up ensures that your financial goals are met with.

1. Track your expenditure

You need to start with something as simple as tracking the expenditure for a month and categorising the same as to whether they are essentials or not. You will then begin to note your spending habits and know all the areas of your expenditure which are mostly unnecessary.

Keep track of your expenditures using mobile apps or even a plain spreadsheet. This step will allow you to understand where your money is being spent and be more conscious while making the right decision at every step about where you could save.

2. Realistic budgeting

Create a budget according to the 50/30/20 rule, adapted to your salary of Rs. 18,000 a month. Classify essential expenses, such as rent, groceries, and transportation, as Rs. 9,000; discretionary spending at Rs. 5,400; and savings and investments at Rs. 3,600. Doing this will prevent you from making unnecessary expenses and get you back on track for savings.

3. Reduce discretionary spending

If you really want to save the money, reducing discretionary spending is a good place to start. Revise your discretionary spending - takeaways, going out to eat, nights out or entertainments, and shopping. Figure out where you can cut back. Instead of ordering takeaway meals, try to cook at home. Limiting how many times you go out is another way of cutting down costs. Reducing discretionary spending allows you to save more money without hampering your essential needs.

4. Reduce utility expenses

Cutting down on utility bills will also allow you to save up. This includes turning off the lights and appliances when they are not being used, using energy-efficient light bulbs, and conserving water. All these will work towards ensuring that your monthly utility costs are kept low.

5. Open an automatic savings plan

Start by investing some portion of your savings through a Systematic Investment Plan, with a regular investment amount. An SIP is an investment plan wherein you provide a fixed amount at regular intervals that goes into mutual fund schemes so that the amount grows over time with the help of compounding.

Sticking to the 50/30/20 rule, reducing excessive unnecessary expenses, and making smart financial decisions can help you develop the habit of saving and, as a result, achieve your financial goals. Remember that every small step towards saving will make all the difference in your journey toward securing a stable and secure future.

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