How Can Salaried Individuals Save 50% of their income?

Do you want to save 50% each month?

This extra savings on your part can mean paying pending repayments more than the actual amount, using the amount to save for enormous expenses or anything that you want to do with the additional money you save on the income.

Saving is a TASK for over-spenders and thus finds it hard to do and maintain the same. These are starter salary tips that help one save a good part –

Tips that will help salaried individuals save 50%

Every individual wishes to save extra money on savings but finds it fairly difficult. Thus, individuals beginning their career should be mindful of the below points:

1. Transportation

One prefers commuting to the workplace using a personal vehicle. Whether it is car leasing, owning, or maintaining a car, both are costly alternatives, especially at the initial stage of employment.

Thus, you can instead use public transportation. In this way, you can save well on petrol consumption, parking, and maintenance required. You can also pool the car to save petrol and money as well.

2. Health insurance

Not every individual think about saving in this way. But if one does, he/she can easily understand that it is better to save £25000 on insurance than incur the same on hospital bills later. Life is unexpected, and thus, insurance works best in helping you tackle unexpected incidents like medical bills.  Adding one or two family members can save you a lot of money.

3.  Reduce and cut on unnecessary expenses

There are multiple types of expenses that an individual faces. It can be as subscriptions and impulse buys. You can close some subscriptions if you aren’t using them anymore. If you are looking for an easy loan from a direct lender in the UK to meet an immediate expense, then cutting down on expenses helps you save for repayments.

 And if you are married and have an internet package for home, then you can limit your usage of mobile data and choose the most affordable plan instead. It will not only help you make the most of your resources, but will also save you money.

4.  Smart online shopping

Most people indeed prefer shopping online, but they might not be familiar with the benefits it grants to your purse. Apart from exposing you to varieties, the online marketplace grants you ample opportunity to save nearly 40% on the purchase. Or sometimes, maybe more. Thus, while shopping online, one can look out for the below points:

  • Check for the coupons on the website, or you can switch to the coupon website to look out for the same.
  • Check if there is any discount on using a specific credit card
  • Check if there is any discount on using UPIs.
  • Look out for the same thing with the free shipping option
  • Resist offer deals like–get 1 free on buying 2

5.  Save money for sinking funds

Has something caught your eye recently that you wish you had?

Wishing never fulfils a dream unless you work for it. Thus, if you want the thing at all costs, then save every month a small amount, known as a sinking fund. It can be an event like birthdays, parties, wedding anniversary coming your way, which you want to be the best one.

A sinking fund is dedicated to a specific goal. Thus, refrain from aligning it with the savings fund. Keep both accounts separately. A sinking fund prevents you from draining all your savings to meet an expense. Divide the sinking fund into two broad categories: large planned expenses and unplanned expenses.

Large planned expenses: enormous expenses can be anything like a house purchase, car purchase, planning an overseas vacation)

Unplanned expenses: sudden computer repair, car repair, an unexpected purchase

The entire plan of having a sinking fund is to allow you to save money to rationalize your dreams, so you can go on a vacation, get your kitchen and makeover, purchase new clothes for work, and any other home repair costs. In precise, saving a small percentage every month from your income can help you save for other important expenses.

6.  Save on food

One expense an individual incurs unconsciously of the budget is- FOOD

Food is a necessity, but spending unnecessary on it isn’t.

If the financial habits continue to destroy humans, causing the expenses to swell. Instead of ordering food every day or every second day at work, you can do:

  • You can work on your health before you head to work and prepare lunch if you have a few extra minutes. Doing so every month can help you save £2000 every month.
  • Reduce spending on outside eateries like having a restaurant dinner. It could be a memorable moment for you, but you’ll save money. You can save on additional calories too!
  • Plan dining out according to the special moments in a month, like birthdays or parties. And thus, save well on food. Birthdays and weddings exhaust savings largely. Thus, what one can do is save on food.

7. Try reducing electricity bills

Electricity bills are one of the unavoidable expenses. But one can indeed reduce the pain by efficient utilization of the devices. Prefer to install only those gadgets in the home that ensure energy savings, like LED light bulbs or CFLs. Apart from this, analyze additional electrical appliances with wires on, switches on, and unplug devices when not in use, plug off the charger when not in use, or the washing machine you forget to turn off.

8. Have a long-term goal

For saving significantly on income, one needs to be dedicated to making long-term goals. Long-term goals help one be on top of stretching the expenditures beyond the limit.

If you are not sure where to begin, you can consult a financial advisor. He will help you provide a comfortable and suitable way of earning and ensure good savings down the lane. You can analyze which bank provides friendly interest in savings and thus, ensure a good sum in hand to full fill your dreams.

Bottom Line

So, this is how salaried individuals can save 50% on their income. However, saving money every month requires one to practice self-restraint and integrity. As a single earner in the family, you can dedicate 50% of the income to savings and the rest of the 50% to meeting other expenses. It is fruitful in the long run if you don’t bulge from following it.