KEY TAKEAWAYS
- Saving ₹2,000 every month becomes easier with a proper savings plan.
- Expense tracking helps you understand where your money goes.
- Saving money immediately after salary improves consistency.
- Budgeting helps divide income into savings and expenses.
- Low-risk investments can help your savings grow over time.
The story of every person who gets their salary and spends more and saves less. Also we think that we do not have too much money to save and after a time we get stuck into unexpected situations and try to get Loan/ Debt but if we have proper savings we don't need to spend more. If you think that we can't save money with low income then you are on the wrong path. Today we will discuss money saving plans with ₹2000 savings.
Can You Really Save ₹2,000 Every Month?
Saving ₹2000 every month becomes easier when you follow a proper monthly savings scheme. We can save ₹2,000 every month but with a proper plan start saving ₹2000 but they stop after a small time.
Saving ₹2000 is not a big goal that is normal but many people don't plan it and fall down, while many people consistently save the amount and get free from many problems regarding their funds.
Why Most People Fail to Save ₹2,000 Monthly?
Most people fail to save small amounts because they never followed proper money saving plans before.
Also they think that saving ₹2000 with ₹10000 - ₹20000 income is very difficult and also that is hard to save if you are managing your family.
The main problem behind that is inconsistency. A month you save ₹2000 after getting motivation from Mukesh Ambani but after the month we fall down to ₹500 saving.
Hence, if you think that ₹2000 is a high amount first you must start to save low, like ₹500/month or ₹1000/month don't be stuck. We will save ₹2000 every month.
The result will be unfair, you will get pressurized and depressed hence, start with a small amount i.g ₹500.
First, Know Where Your Money Goes
Expense tracking is one of the most important parts of successful money saving plans because it shows where your salary is going.
Do you remember where and how much money you spent this month? No worries, maybe you forgot the reason is you don't record your expenses, tracking your expenses is the base of every financial planning whether you are going to invest or you are making a budget.
If you don't know about your expenses you can't get fair results. Additionally, expense tracking helps you to track large expenses.
Also many time we ignore recording of small Expenditure like ₹5 chocolate, ₹10 biscuit, etc that is not a good practice because these ₹5 chocolate and ₹10 biscuit can create high amount of spending if we consume these monthly hence, ensure that to record every spending weather it is ₹1 or ₹100.
Save ₹2,000 First After Getting Salary
After getting your salary or income firstly you should pay yourself first because when it comes to spending you will lose your whole salary then you have nothing to save so first save your ₹2000 then spend your remaining money.
Additionally, when you save ₹2000 you must invest them immediately. You should not have any way to withdraw that money and spend it, hence as soon as you get your salary, invest that money or put it in a place from where you cannot withdraw it immediately.
Start With More Lowest Amount if You Are Not Financially Stable
In lower middle class families even ₹2000 is a large amount. We aren't able to save that because we have many needs and wants.
Hence, if you are from those families like me and you don't save before then first you must start saving with a low amount of ₹500 so that you can save regularly every month without sacrificing your wants and needs.
You must save that much amount where you are comfortably managing your spending, needs and wants.
Save Money From Daily Expenses
One of the main goals of saving is to decrease the expense and increase saving over time. You must save more money from your expenses even if you save ₹1 instead of spending it.
For Example - Ratan is purchasing a packet of salt that cost ₹48, he paid ₹50 note to retailer but retailer don't give him ₹2 back also Ratan think that ₹2 is worthless but here Ratan was wrong because he don't understand that if he ignored ₹2 on every purchase he will lose more money.
Hence, you must save how much money you can save from your daily expenses.
Make a Budget Before Spending Your Salary
Budgeting is one of the strongest money saving plans because it helps you divide your income into savings and expenses. Sometimes we spend more or save less.
The reason is we don't plan it before budgeting. It is a planning of distribution of money into your spending and savings thus, it becomes essential if you want to manage your fund like professionals.
How Can We Make the Budget
A budget works like a personal monthly savings scheme because it divides your salary into expenses and savings. It is not a complex work, it is a habit which develops over time.
Sometimes, you will find that you make a budget but can't control spending but when you make it consistently you will master budgeting.
To make a simple budget keep a pen in your hand and also keep a notebook. Divide a page into three parts -
- Fixed Expenses, for example rent, EMIs, Ration, Electricity Bill.
- Savings - The money you save for the future.
- Variable Expenses - These are your daily expenses like tea, snacks, etc.
According to your salary you should fill up all Fixed and Variable Expense. Remember that before planning variable expenses you must take out your savings separately.
Your flow must be -
Fixed Expenses → Savings → Variable Expenses
The image below shows how you can write your budget with a balanced format.
After making a budget the remaining money you can save in an emergency fund or carry forward to next month.
Where Should You Keep Your Savings?
Savings is money you keep for future goals, but smart investing helps that money grow faster than inflation.
Additionally, Inflation decreases the value of money over time so, you must invest your saving in those assets which grow over the time to beat the inflation, more of bank saving account provide ~ 3% - 3.5% of annual returns that can't enough to beat the inflation hence, where can you keep your saving for growth without any risk.
Savings is that money you save for future goals, dreams, etc. So, you must invest that money into low risk and safe assets.
Some of Best Assets or Investment Categories With Low Risk
FD (Fixed Deposit)
Fixed Deposit is a common investment type of every lower middle class family after bank saving accounts. Fixed Deposit provides ~ 7% - 8% annual returns with low risk.
If you want safety with stable returns, smart investing can start with Fixed Deposits because they carry low risk.
PPF (Public Provided Funds)
PPF is a scheme only for residents of our country. It comes in safe investment and provides 7.10% of annual returns with safety.
You can invest ₹500 minimum and ₹1.5 lakh maximum. After investing you are only able to withdraw your money after 15 years (Lock-In Period).
Hence, if you don't need your savings for 15 or more years you can invest in PPFs.
RD (Recurring Deposit)
RD is a popular monthly savings scheme because you invest a fixed amount every month for a chosen tenure.
It provides the same returns as Fixed Deposit also RD is safe to invest, you can start investing with minimum ₹100.
Hence, if you want to build a monthly savings habit you can choose RD.
High Interest Bank Saving Accounts
There are some banks that provide high interest bank saving accounts so, you can also save your money into a savings account.
Liquid Funds
Liquid Funds are best for unexpected situations because they provide liquidity, so you can withdraw and deposit your money every time without any exit load.
With this it can provide ~7% - 8% of annual returns with slightly more risk than FD and RD.
For emergency savings, smart investing through liquid funds can provide both flexibility and moderate growth.
High Risk Instruments With Higher Return Potential
Mutual Funds
Mutual Fund came with high risk with high return potential you can start SIP (Systematic Investment Planning).
If you want higher long-term growth, smart investing through SIPs in mutual funds can be a good option.
Index Fund
Index Fund follows an index like Nifty 50, Nifty Bees, etc.
Someone said “Be it the stock market or the man, the path is always upwards.” and maybe it is true in some condition but still if you are beginner you must avoid Index Fund weather they provide high returns but still you are investing in stock market so, be careful.
Common Mistakes That Stop You From Saving
- Start saving a high amount of money without understanding your potential.
- Start saving without making a monthly budget.
- Keep saving at home and spend that after a time for variable expenses.
- Impulse buying when saw discount, cheap price, bulk quantities, etc.
- Taking too much loan or buying products on EMIs.
Conclusion
Small savings like ₹2000 can create big results if you follow practical money saving plans consistently.
Even if you start with a small amount, regular saving habits can improve your financial stability over time.
With proper budgeting, expense tracking, and smart money saving plans, you can build a secure future without putting pressure on your income.
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