For the best experience, open
on your mobile browser.

New Year 2024: A Savings Plan For Rs 25,000 Monthly Earners To Become Rich!

Even with family responsibilities individuals can save a significant portion of their Rs 25,000 salary.
12:51 PM Dec 29, 2023 IST | Saurav Gupta
new year 2024  a savings plan for rs 25 000 monthly earners to become rich
Savings Plan

In a common narrative, the struggle to save persists alongside rising expenses, serving as a prominent excuse for many individuals in the country. This perpetual cycle often leads to years passing by without significant savings. There's a prevalent notion that waits for a salary increase to begin saving. However, this belief often becomes a hindrance rather than a motivator.

The truth is, those fixated on awaiting a salary hike before saving seldom manage to save efficiently. The cycle of waiting for a better paycheck continues indefinitely. The reality is different; effective saving can begin from your existing salary. It demands willpower and a strategic approach. Here's a comprehensive guide on how and how much to save, catering even to those earning Rs 25,000 monthly.

The Formula for Efficient Saving:

Start by transferring a portion earmarked for savings into a separate account immediately upon receiving your salary. If a secondary account isn't available, commit to not touching the allocated saving amount. For those hesitant about saving initially, aim for a 10 percent savings rate for the initial six months, amounting to Rs 2,500 monthly.

For individuals with salaries around Rs 25,000, it's crucial to determine the optimal monthly savings and potential investment avenues to secure future financial stability.

Read More: Planning To Start Your Fitness Journey From This New Year? Here Are Simple Tips To Achieve Your Goal

Prioritizing Savings:

Even with family responsibilities individuals can save a significant portion of their Rs 25,000 salary. Typically, those in private jobs should aim to save around 30 percent of their monthly income, equating to Rs 7500. Falling short of this benchmark signals a need for immediate reassessment of investment strategies.

Gradually Scale Up Savings:

Commence with a 10 percent saving rate, incrementally increasing it every six months until reaching the 30 percent monthly savings goal. Initially, adapting to this change may pose challenges, especially if accustomed to spending the entire salary. Crafting a list of expenses and distinguishing between essentials and non-essentials is paramount. Cut down on avoidable expenses, reducing discretionary spending on items like dining out or unnecessary purchases.

Strategic Expense Management:

Analyze unnecessary expenses, which typically account for around 10 percent of one's salary. Minimize the use of multiple credit cards and curb online shopping habits. Prioritize shopping lists, avoid impulsive buying, and capitalize on offers only when needed. This disciplined approach can yield a 30 percent savings rate monthly.

Effective Investment Strategy:

Following this formula, individuals earning Rs 25,000 can save Rs 90,000 annually. Furthermore, Allocate Rs 2500 from the Rs 7,500 monthly savings as an emergency fund. Invest Rs 5,000 monthly through SIP in Mutual Funds as it offers a return of nearly 20-25 percent in the time span of 5 years more than any other bank and NBFCs. This will help an individual in significantly surging their income and attaining wealth. As salaries grow, adjust the investment proportion accordingly.

Read More: 2023: Elon Musk’s Net Worth Surges 11 Times More Than That Of India’s Richest Billionaire

Sustainable Financial Security:

By consistently saving and investing using this formula for a decade, individuals can build a substantial fund, offering a safety net during challenging times. This structured approach ensures a financially secure future, fostering stability and resilience.

(Note: Seek guidance from a financial advisor before investing in mutual funds.)

Tags :
tlbr_img1 World tlbr_img2 Trending tlbr_img3 Entertainment tlbr_img4 Video