⁠Rs 25,000 Salary: How Much Can You Really Save In One Year

If your take-home pay is Rs 25,000 a month, it may feel like savings are out of reach. But by creating a realistic budget and adopting frugal habits, it is quite possible to put aside around Rs 48,000 to Rs 72,000 in a year, which means about Rs 4,000 to Rs 6,000 a month. In percentage terms, it comes to nearly 20% to 24% of your income.

First, set up a clear budget. With a tight monthly income of Rs 25,000, keep aside 60% for essentials, 20% for savings and 20% for discretionary spending, instead of the classic 50-30-20 rule.

In your case, that means about Rs 15,000 on needs, Rs 5,000 into savings and Rs 5,000 for wants.

One of the biggest levers for savings is your housing cost. If you’re able to share a flat, live in a more affordable area or stay with family. That way, you could reduce your rent burden, which would go a long way in helping you save Rs 5,000 or more monthly.

Similarly, food expenses can be cut significantly by cooking at home instead of ordering through food delivery apps or eating outside. Buying staples in bulk from local markets rather than expensive supermarkets is another win.

Transportation also offers savings. Avoiding cabs and using other modes of public transport such as bus or carpooling, or even cycling, can save you hundreds every month. This would again add up substantially over a year.

Reducing utility costs is smart too. You can switch to LED bulbs, use energy-efficient appliances and turn off idle devices to lower electricity bills.

To make saving automatic, treat it like a non-negotiable bill. For example, set up an auto-transfer of Rs 5,000 to a savings or recurring deposit (RD) account as soon as your salary arrives every month. If you choose SIPs, you can start with even modest contributions like Rs 500 a month. This, too, can grow steadily over time.

You can also maximise rewards and cashback by using UPI apps like PhonePe or Google Pay, or credit cards wisely, to earn cashback on recharges, groceries or bills.

The next thing to do would be to avoid unnecessary subscriptions for OTT platforms, apps, or services. Cancel those subscriptions you don’t need or use. This is another another small change that can free up cash.

If possible, supplement your income with a side hustle, such as freelancing or tutoring. Additional earnings, even if small, can boost your savings and help build an emergency fund.

Finally, track your spending using a budgeting app or even a simple notebook. This is very important, as you need to know and track where your money is going. Over time, this awareness helps you avoid those unnecessary spendings and stay on track.

In short, with discipline, a Rs 25,000 monthly income need not mean zero savings. Aim to save Rs 4,000 to Rs 6,000 monthly and stick to a tight but realistic budget. That way, you can build a meaningful annual cushion, all while living within your means.