Money Tips: How to Save ₹5,000 Every Month on a ₹30,000 Salary

Do you often feel like your salary vanishes before the month ends? Saving money might seem impossible on a ₹30,000 salary, but with the right strategies, you can effortlessly set aside ₹5000 every month—without sacrificing your lifestyle. Whether you're planning for an emergency fund, a big purchase, or growing your money through a high-interest savings account or Fixed Deposit (FD), this guide will show you exactly how to take control of your finances and build a secure future.

Step 1: Budget Like a Pro (50-30-20 Rule)

One of the easiest ways to manage your income is by following the 50-30-20 rule:

• 50% (₹15,000) for Needs - Rent, groceries, utilities, transportation
• 30% (₹9,000) for Wants - Dining out, shopping, entertainment
• 20% (₹6,000) for Savings & Investments - Savings account, FD, SIPs, emergency fund

Since we aim to save ₹5000, you can tweak this by cutting non-essential spending and allocating more towards savings.

Step 2: Open a High-Interest Savings Account

Instead of keeping your savings idle, park them in a high-interest savings account. Ujjivan offers Savings Accounts that provide higher interest rates, up to 7.5% p.a.*, helping your money grow over time. Set up an auto-debit of ₹5000 from your salary account to a savings account to ensure consistent savings.

Step 3: Cut Down on Unnecessary Expenses

Look at your monthly expenses and identify areas to save:

• Cook at Home: Eating out 3-4 times a week costs around ₹4,000-₹5,000. Reduce it to once a week and save at least ₹2,000.
• Cancel Unused Subscriptions: Are you using all your OTT subscriptions? Cutting down on extra services can save ₹500-1000.
• Use Public Transport or Carpool: If you spend ₹4,000 on fuel or cabs, switch to public transport to cut down at least ₹1,500-2,000.
• Avoid Impulse Buying: Unplanned shopping can drain your salary. Stick to a shopping list and avoid unnecessary purchases to save at least ₹1,000-2,000.

By making these small changes, you can easily free up ₹5000 without compromising on essential expenses.

Step 4: Invest in a Fixed Deposit (FD)

A Fixed Deposit (FD) is an excellent way to park your savings and earn guaranteed returns. With Ujjivan Fixed Deposits, you can earn more than 8% p.a. subject to terms and conditions, ensuring that your money grows safely over time. You can set up a recurring deposit where ₹5000 is automatically invested each month in an FD.

Step 5: Earn Extra Income for Better Savings

If cutting expenses isn’t enough, explore side income opportunities:

• Freelancing (writing, graphic design, data entry) – Earn ₹2,000-₹5,000 extra.
• Online Tutoring – Earn ₹5,000+ by teaching subjects you’re good at.
• Selling Handmade Crafts or Products on Instagram or Etsy.

This additional income can be directly put into your savings account or FD, accelerating your financial goals.

Step 6: Track & Automate Your Savings

Automate savings with a Standing Instruction to transfer ₹5000 to an FD or savings account immediately after you receive your salary.

• Review your expenses every month to ensure you’re sticking to the plan.
• With consistent effort and smart money management, saving ₹5000 a month is absolutely achievable, even with a ₹30,000 salary.

Disclaimer: The above examples are for illustration purposes only and shouldn’t be construed as an investment advice. Please consult a SEBI-registered financial adviser to make informed financial decisions.