How to Save ₹10,000 Every Month: A Step-by-Step Guide for Indian Salaries

For most Indians, saving money feels like an impossible task. Between rising rents, EMIs, food, and lifestyle expenses, salaries often vanish by the end of the month.

But here’s the truth: with a structured plan, anyone earning ₹25,000–₹60,000 per month can consistently save ₹10,000 every month—without extreme sacrifices.

In this guide, I’ll break down practical steps, money hacks, and Indian-specific strategies that actually work.

Step 1: Track Where Your Money Goes

You can’t save what you don’t measure. Most people don’t know how much they actually spend on food, subscriptions, or impulse shopping.

Action Plan:

• Use apps like Walnut, CRED, or PaisaSync (your own app) to track expenses automatically.
• Note down every rupee spent for one month.
• Categorize into:
  • Essentials (rent, EMIs, bills)
  • Lifestyle (food, shopping, entertainment)
  • Savings/Investments

👉 Awareness itself will help you cut 10–20% of wasteful expenses.

Step 2: Apply the 50-30-20 Rule (Indian Version)

The global 50-30-20 rule (50% needs, 30% wants, 20% savings) doesn’t always fit Indian salaries. Let’s tweak it:

• 60% Needs → Rent, EMIs, groceries, transport
• 20% Wants → Eating out, movies, shopping, travel
• 20% Savings/Investments → At least ₹10,000

👉 Automate your savings (via SIPs or recurring deposits) right after salary credit. Don’t wait till month-end.

Step 3: Cut Down Lifestyle Leaks

Most people overspend on food, subscriptions, and impulse purchases. Cutting small leaks adds up to big savings.

Hacks:

• Limit Swiggy/Zomato orders to twice a week → save ₹3,000–₹4,000/month.
• Cancel unused OTT subscriptions → save ₹500–₹1,000/month.
• Switch from cabs to metro/bike pooling → save ₹2,000/month.
• Buy groceries in bulk (DMart, Jiomart) → save ₹1,500/month.

Total savings = ₹7,000–₹8,000/month without feeling deprived.

Step 4: Reduce EMI & Loan Burden

For many Indians, EMIs eat up 40–50% of salary. Reducing them is key to freeing money for savings.

Options:

• Balance transfer to lower interest personal loans.
• Prepay high-interest loans first (like credit cards, app loans).
• Convert credit card dues into EMIs if you’re stuck paying only minimum due.

👉 Even reducing ₹2,000 EMI frees up extra savings.

Step 5: Create a Zero-Based Budget

A zero-based budget means every rupee of your salary is assigned a job—either for spending, saving, or investing.

Example for ₹40,000 Salary:

• Rent: ₹10,000
• Food & Groceries: ₹7,000
• Transport: ₹3,000
• EMI: ₹7,000
• Wants: ₹3,000
• Savings/Investments: ₹10,000

👉 This ensures you don’t spend mindlessly and guarantees ₹10,000 savings.

Step 6: Automate Investments (So You Don’t Touch Savings)

The best way to save is to remove temptation. Automate ₹10,000 deduction right after salary.

Best Options in India:

• SIP in Mutual Funds (Index Funds, ELSS) → 12–15% average return long-term.
• Recurring Deposit (RD) → Safe, fixed savings habit.
• PPF/EPF → Long-term wealth with tax benefits.

👉 Treat savings as a non-negotiable monthly bill.

Step 7: Boost Income for Faster Savings

If saving ₹10,000 feels tough, increase your income alongside.

Ways for Indians:

• Freelance on Upwork, Fiverr, or LinkedIn (coding, design, writing).
• Teach online (Vedantu, Chegg, Unacademy).
• Start a side hustle (affiliate marketing, YouTube, blogging).

👉 Even ₹5,000 extra income monthly makes savings much easier.

Salary-Wise Savings Calculator (India 2025)

Here’s an example breakdown of how Indians across different salary ranges can save ₹10,000 per month with smart budgeting:

👉 This shows that ₹10,000 savings is possible across salary ranges, but lower salaries may need stricter budgeting (shared rent, cooking at home), while higher salaries have more flexibility.

Practical Example: How Raj Saved ₹10,000 on ₹35,000 Salary

• Salary: ₹35,000
• Rent + Bills: ₹10,000
• Food & Transport: ₹8,000
• Lifestyle Expenses: ₹5,000
• EMI: ₹2,000
• Automated SIP: ₹10,000

Result: Raj saved ₹10,000/month by tracking expenses, cooking at home, and automating SIPs.

This proves it’s possible even with modest salaries.

Frequently Asked Questions (FAQs)

1. Can someone earning ₹25,000 save ₹10,000 a month?

Yes, but it requires aggressive budgeting—sharing rent, cutting eating out, and avoiding debt.

2. What if I have multiple EMIs?

Prioritize loan repayment first. Start with smaller savings (₹3,000–₹5,000) until EMIs reduce, then increase to ₹10,000.

3. Should I invest or keep savings in FD?

Invest at least part of it in SIPs (for growth). Keep some in RD/FD for emergencies.

4. How can couples save ₹10,000 each?

Split household expenses fairly and automate individual savings. Joint planning helps avoid money fights.

5. What’s the fastest way to save more than ₹10,000?

Increase income through freelancing/side hustles while keeping lifestyle constant.

Saving ₹10,000 every month is not about cutting joy—it’s about discipline, automation, and smart planning.

Here’s the formula:

1. Track expenses
2. Apply the 60-20-20 rule
3. Cut lifestyle leaks
4. Reduce EMI burden
5. Use a zero-based budget
6. Automate investments
7. Boost income

Follow this plan for a year, and you’ll have over ₹1.2 lakh saved + investment returns - a huge step toward financial freedom.