How to do Savings?

October 19, 2013   ·   0 Comments

How many of you are able to save enough for your future. Most of the people tend to focus on  earning more and are drawn towards getting better and better CTC. I am amazed that even after 5 years in job,  few of my friends even fail to save Rs. 1 Lac for their tax saving though having really handsome salaries. 

Take a look on how much money you were earning 2 years back.  Does your change in earning propionate to the amount of savings you have done in the last 2 years?

Reality is Most of us today fail to manage our expenses, which thereby results in less savings or nil savings.  Thumb rule is expenses increases as we earn more.


Reason for not saving enough is actually pretty simple. Most of the people manage their savings and salary account as the same account.  The human physiology says after a certain number in your account say 50k or 1 Lac, people tend to start they have enough money and start buying things which they would have not planned or even desired at that stage.


Tendency of few others is to start saving money with a huge amount, which never arises.


1) It has become an intriguing challenge for each one of us on how to save. The solution is pretty simple. Save monthly or in a recurring fashion.

Today,we all are blessed with a ECS – Electronic Clearance Service from the banks which can deduct money at regular intervals for your investments,

mutual funds, tax savings and recurring deposits in banks, NBFC’s.


One needs to just push start an investment. Once the money gets deducted from your account regularly, your expenses automatically gets reduced.


2) How much to save money:


It is always advisable for a common man earning around 4 Lac to save at least 7k-10k per month though a proper financial plan in order to achieve his

short term and long term goals.


At least 30% of money of savings should go in long term  investment irrespective of your short term goals.

Always remember Short term goals would always be there in your life throughout. Once short term goal gets achieved, another arises and this is human fallacy.

But what if a person is able to save 1,000 Rs month only. Will that make any difference? 

Below mentioned is the amount of money you will make if you save 1,000 per month

Returns Percentage/Years 10 Years 20 Years 25 Years 30 Years 35 Years
10 % 2,06,552 7,65,696 13,37,890 22,79,395 38,28,277
15 % 2,78,657 15,15,954 32,84,073 70,09,820 1,48,60,645
20 % 3,82,363 31,61,479 86,26,708 2,33,60,800 6,30,83,478

Disciplined investment of regular saving of 1,000 Rs per month at interest rate of 20% can make you a crorepati in around 26 years. This is the power of savings.

It is hence never too late or too small to start.

Few Other pointers to manage money is:

  • Making sure you set up a reminder to clear your credit card dues completely by each payment cycle.
  • Redemption of your credit card/debit points accounts at regular intervals.

You can also refer this link to know more about financial planning and power of Regular Savings:


3) How to start saving money:  Get in touch with us at contact-us page in case you are determined to start saving but have little headway on how to start and where all you need to save.

Read  Income Tax Saving Techniques

Rajesh Singla

Rajesh is the founder & CEO of Stockssavvy, Stocks analyst,financial advisor by choice,software engineer by fate,biker,gamer,cricket lover n enthusiastic person. He believes in doing things not just to get by but to get Ahead...

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