Key Takeaways

  • Track your expenses to understand where your money is going.
  • Follow a budgeting strategy (50/30/20 rule) to manage your income properly.
  • Avoid impulse buying and cancel unnecessary subscriptions to save more.
  • Build an emergency fund for financial safety and unexpected situations.
  • Use the best money saving apps to simplify saving and money management.
Table of Contents ☰

Struggling to save money? Learn 10 simple money saving plans to control overspending and manage your money better. Start now.

Every person is making money, but every person is not financially free because they do not have enough knowledge of how to manage money. How can we save it? Today we are gonna discuss about 10 money saving plans for beginners in India and best money saving apps that assist you to make better financial decisions and manage money easily.

money saving plans


Start to Track Expenses

Track your expenses is the first step towards saving.It is not that you cannot save without tracking expenses. Many people save without tracking expenses, yet tracking is necessary because it gives us complete information about our cash flows.

Expense tracking is a habit since it slowly grows with time. Many times you forget to track your expenses so, start with inconsistency to be consistent.

On the contrary you can also follow some expenses tracking apps that can make your work easier.

Move to Budgeting (50/30/20 Rule)

Before money saving plans you must learn how to organise or plan your income.

Budgeting is the crucial part, every time we come with a budget on picnics, travelling, for clothes etc, also when we obtain a salary. We must prepare a budget that follows our Needs, Wants and Savings/Investing.

Beginners should follow this simple ( rule 50/30/20) of budgeting. The rule describes distributing your salary or income in three parts (Need, Wants, Saving) 50% of your salary must be spent on your needs, 30% of salary spent on your wants and the remaining 20% must be invested or saved.

For Example if your salary is ₹1,00,000, ₹50,000 you must spend on your needs, ₹30,000 are yours you can spend on your wants and remaining ₹20,000 you must be invested or saved.

The rule is not fixed. You can increase your saving or investing amount by deducing your wants.

Cancel Unnecessary Subscription

Maybe you are utilising some online paid services like OTT (Over The Top ) subscription, Using paid subscription apps, Your Gym Membership etc. If you have unnecessary subscriptions you must cancel them immediately they are ruining your money.

Control your Impulse buying

Spending is not harmful if you are spending with an open mind. Many times we spend money on unnecessary things when we see better discounts, cheap products, bulk quantities etc. We don't even think about whether it is worth it.

So , if you are going to purchase something first, think, is it worth it now?

You can also start by making a shopping list so that you can get control of your extravagance.

Set your UPI, Cash limit

Today, we use online payment more than cash. Many people say that when we pay online, we can't feel that we are paying money or we are losing money by hand. Since, it ends with more spending and that is not a single person problem . Really when you pay online our mind can't decide if we pay money or not, but if we pay in cash we can feel physically that we are losing money from hands.I hope you are understanding my opinion. So, you must set a limit on your online payment so that you avoid overspending.

Save some part of your side income

The income you get without actively working is known as side income like room rent, dividend form stocks, etc. Many people spend their whole side income without thinking that it can be saved or invested, if you are from those stop doing that. On the contrary you can use the 50/30/20 rule of budgeting. Firstly add your all income (side incomes + active income) then you can follow budgeting rules.

Saving for retirement early

The sooner you start saving, the more time you have to grow your retirement money. Thus, start saving funds earlier for your future. You can start with a small amount based on your income, with that you can start investing in PPF(Public Provided Funds) or FD(Fixed Deposit) if you don't want to get high risk maybe FD (Fixed Deposit is the best way to save money in bank, but if you choose risk tolerance you can invest in Mutual Funds, Index Funds, Gold etc.

Apart from that we could choose a bank saving account but if you think deeply, then you will find a savings account that provides 3% of annual returns that can't even beat inflation hence your saved money will lose its value over time.

Build an Emergency Funds

The funds you save to tackle unexpected situations are Emergency Funds, as a family person you must prepare an emergency fund by saving some part of your money. It says that you should have 6 times of your salary as Emergency Funds, this is the minimum amount you can increase according to how much protection you want.

Additionally you can invest your Emergency Funds to beat inflation but keeping in mind that this money is for Adverse circumstances hence,you must invest it in low risk categories like Liquid Funds, FD (Fixed Deposit).

Invest your Money

While saving is essential, due to inflation your money loses its value over time hence you must invest your savings to beat inflation and additionally to grow your fund. You can start investing your saved fund by putting it into High Return Saving Account, PPF Public provided Funds) , Liquid Funds, Fixed Deposit etc, along with that if you are ready to take more risk for high returns you can start investing in mutual fund, Gold, Index Funds etc, you must take advice from Investing Expert before investing.

Cut down on Debt

If you have taken loan/ Debt for something then you will find it difficult to save because your salary will be spent on your EMIs, Loan etc. So, First you must finish your high interest debt like Credit card Overdraft then you must try to avoid taking debt with high interest, also you don't increase your time horizon to lower the monthly Installments that increase your total amount (Debt + Interest) so, try to take minimal debt.

Best money saving apps

If you don't want hassle you can use some best money saving apps that can help you to make your money save and ease your work. Firstly we must know about there are 3 types of money saving apps

1. Expense tracker

Expense tracker apps help you to track your expenses. They show you where you are making or losing money by which it becomes easier to manage your expenses.

1. Money Manager is a good app for expense tracing. It provides SMS money tracking services since it is good for beginners.

2. Saving / Investment apps

Saving and Investing apps are good if you want to grow your savings over the time they provide services like investing, saving, trading etc. usually there are many brokers like Zerodha, Angel One ,Dhan etc. but I prefer groww over these because of

Groww is a simple, beginner-friendly investment app that lets you invest in stocks and mutual funds easily. Its clean and easy interface helps new users start investing without confusion. If you want to begin your investment journey with a small amount, Groww can be a smart starting point.

3. Budgeting apps

Budgeting apps are best to plan your spending after getting your salary. Usually these apps are not fully automatic but still they provide you many services like Budget setting with limit, Report and analysis of your spending, saving, income etc they also provide expense tracking services so, you have not carry one another app to track your expenses.

There are many budgeting apps but still I prefer Wallet to manage your money. Walnut is an easy to use app which provides you various money management services like budgeting, expense tracking, Bill Reminder, Bank and card tracking etc. Hence, if you want the best money saving apps I prefer to use Walnut.

Conclusion

Saving is essential if you have future goals, many people break their savings early that affect over-all growth, hence, you must have an emergency fund for unexpected situations.

The earlier you start saving your money you have more time to grow it thoroughly. Also, you can use these best money saving apps to make your savings journey easy.

At the end we want to say every person saves money, but they lose the money due to low knowledge of saving budgeting.

These money saving plans are essential if you are trying to manage your money. You must learn about personal finance to get more clarity on money.

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