Financial planning: Irrespective of the amount of money you earn, you try to save it whenever and wherever possible. For high income earners, it might not be that challenging to save money, though they may see other challenges coming their way. But for those earning less, it’s very difficult to set aside some money for savings especially when they struggle to make both ends meet.

Saving money on a low income can feel challenging, but it is doable if you are focused and follow a right approach. The foremost thing as a low income individual you need to follow is to set a clear savings goal and stick to a strict budget. Look for ways to lower your expenses and use money more effectively. You can also think about methods like automating savings and bills, which simplify financial plans.

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Experts suggest several effective ways to cut down unnecessary expenses. Specifically, they recommend finding more affordable ways to travel, cutting down on dining out, or shopping smartly for groceries. Additionally, taking advantage of government programs can provide extra financial support, helping you save even more, they opined.

Building an emergency fund is important, and even small, regular contributions can add up over time, suggests, Ritu Jain, a person finance expert and Founder of Money Tree. “Focus on prioritizing your expenses and finding cost-saving measures, like cooking at home and looking for discounts. By developing good financial habits and being mindful of your spending, you can make progress toward your savings goals,” she added.

According to Akhil Chandna, Partner, Grant Thornton Bharat, “Saving money on a low income can be challenging but is achievable with proper financial habits and strategic planning.”

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Chandna suggests some useful tips to save money on a low income.

Create a Budget: Track your income and expenses to identify areas where costs can be reduced.

Automate Savings: Set up automatic transfers to various investment schemes such as recurring deposit, Mutual Funds etc. as soon as you receive your salary.

Avoid Debt: Focus on avoiding new debt and paying off existing debt (if any).

Secure Your Family with Insurance: Ensure your family is protected with appropriate insurance coverage such a health insurance, life insurance etc.

Utilize Government Programs: Invest in various government programs/ schemes to avail tax benefits.