7 options I used to save Rs 1 lakhs per year without stressing

No matter how big or small your salary is, saving your money for your future and emergencies is crucial for us all. When I started working, 12 years ago, I spent all my salary in shopping in the first year, buying things I always wanted. But after that I saved up money using 7 different options and today I feel super safe. To begin with, I made a goal of saving at least Rs 1 lakh a year and now I have savings that cross Rs 20 Lakh and I can slowly think of investing in real estate. If you want to save and have a sound sleep too, then scroll down to know how you can start today!

Do you often find yourself splurging money on things you realise you didn’t really need by the end of the week? Are you getting taunts that you have many deliveries coming in? Well I did so too and at first I felt nothing but when I took into account the money I had spent on it all, I felt ashamed. So, I began by deleting all the shopping apps, surfing on the internet for different products, and going to the store just like that. By the end of the month, when I did the math, I had saved a huge amount and it made me feel richer and better!

I used to spend a lot on food and nothing was really healthy. Every time I had a stressful day, a small fight with anyone could upset me and my first action was to order something sweet or indulgent. I slowly realised that besides my shopping, I was spending more than Rs 10, 000 on food every month which is a lot! So I started visiting the vegetable market on a weekly basis, stocked up on what all I would want to eat that week. I would whip up dishes by looking at my ancestral recipes or on YouTube. Sometimes, I would burn my food but still ate it because I worked hard on it. I would treat myself to fresh fruits that I bought at a cheaper price as compared to the society shop rates and quenched my sugar cravings. So instead of Rs 10K, I ended up spending just Rs 4K, which included all sorts of fruits and vegetables and oil. I ended up not just saving a lot but also losing weight. It is a proud feeling!

Next up, I consulted some people who know what savings means and are doing well in life and they suggested a few ways to go about it. The first was opening a recurring deposit or an RD. I began saving Rs 7000 per month. I decided to forget that I got the amount as a part of my salary and kept going for a year. At the end of the year, I had saved so much money! Since it is a recurring deposit, I earned a decent return too. Even if the percentage of interest is low in that year, the best thing is that you will still save all that amount. It is like a win-win situation.

When I had the above 3 things going for me, I began a “hisaab” diary where I would note down even the Rs 20 note that was given to the “press waala” for a few clothes that I could not manage myself. It seems annoying in the beginning but by the end of the week, you get a hang of how it works. Then after a week, I made a budget for everything including how much I want to spend on weekends when we go out to socialise. I made sure not to cross it. And by the end of the month, I had saved even more.

SIPs stands for Systematic Investment Plan and it is a mere tool that helps you invest a particular amount of your salary in mutual fund schemes, which are mostly equity mutual fund schemes. After a year of managing the above 4 ways, I opened 2 SIPs. SIPs are great for maximised returns especially when you do it regularly over a period of time no matter what the market conditions are. Today I have enough invested in the market and I do not worry as much about my future. You can break a big amount into 3-4 smaller amounts and invest in different SIPs. You then get more units when the market is low and fewer when it is high. It is great for achieving long term financial goals by making small investments regularly.

This scheme is great if you want to save for yourself after retirement especially if you do not have a government job because I certainly don’t. NPS is a scheme which is managed by the Pension Fund Regulatory and Development Authority (PFRDA). It requires you to invest a minimum of RS.1000 for NPS Tier -1 accounts so that it remains active. The best thing is that anyone can invest in this plan. Even if you put just Rs 2000 in it every month until you retire, you will be safe.

The last thing I would request everyone to do is open a PPF account. Best the PF your office makes you save for, a PPF is the best for tax free returns too. You get returns which are not taxable and this makes this kind of investment the best! You have to put in a maximum of Rs 1.5 Lakh a year and a minimum of Rs 1000. I put at least Rs 30, 000 in it every year and shall keep doing so.

Try the above investment options for at least a year or two and you will feel what I feel. Who does not like a fulfilling, stress free sleep?

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