Save Money from Your Monthly Salary: Proven Tips and Tricks

Looking to take control of your finances and wondering how to save money in 2023? Our latest blog is here to help! Discover 23 practical tips and strategies for saving money each month. Whether you’re aiming for a big financial goal or just want to build better money habits, these tips are tailored to help you succeed. Read on to start your journey towards financial empowerment and stability.

New Year is just around the corner, so it is time to start saving money from January 2023. This year, it is  not about ‘making BIG plans’ to save money, but actually trying to cut down on spending. Eventually reviewing them will let you save much more!

How to Save Money in 2023: List of 23 Practical Tips for Smart Saving

Follow a budget

A budget balances the fundamental aspects of financial planning directed towards getting more control of your finances. It will enable you to plan for your savings and investing, allowing you to manage your money efficiently. 

Use the LXME Budget Planner to keep track of your expenses.

Automate payment

Whether it is your investments, subscriptions or bills, it is essential to automate all your necessary payments so that you do not miss out on any and know how much you are actually spending monthly. Pro tip: Create another savings account, when you save X amount of money every month, which are purely your savings. You can also automate X amount of money to be transferred into this account every month. 

Consider a side hustle 

This will be suitable for earning extra income along with your full-time job. It includes tutoring, running a blog, and starting a small online business with your creative hobby, like selling your artwork, candles, soaps etc.

Cancel unwanted subscriptions

You have that OTT Platform subscription, which you haven’t used in 3 months? Girl, it is time to cancel that and save the money you are spending on it! Cancel any subscriptions you have purchased and not used since the past 3 months or more. You can always repurchase them when actually needed.

Take advantage of cashbacks and discounts

Cashbacks are a excellent way to save money, however it shouldn’t be why buy that particular product or service. Only if you absolutely need that particular product or service, then check out any discounts or cashbacks.

Plan your meals and groceries:

There will be times when you would have paid extra for groceries which you eventually don’t  use most of the time. The best thing to do every week is to plan the meals you want to cook at home and accordingly purchase the required ingredients needed. This way you don’t end up spending too much on groceries and not wasting it by buying just the right amount.

Sell items that you are not using anymore:

There are a lot of websites where you can list your unwanted items and sell them. Do make the most of this and sell some items you own that are in good condition to others. Alternatively, you can even purchase some items you need from these websites. This will help you save some money.

Keep track of your spending:

Keeping track of your spending is essential for saving money. To analyze your finances, you must know where your money is going. By looking over your bank and credit card statements, you can keep track of your expenses, enabling you to budget.

Use credit cards correctly:

Credit cards are significantly more protective than debit cards. A compromised debit card allows direct access to your savings account. With a credit card, the access is limited to your credit limit and once flagged for fraud, the bank takes care of the rest, and you then end up paying high-interest rates. Rewards, Cash backs, and miles collection are known perks, and it is vital to re-evaluate your credit cards yearly. Credit cards are portrayed as cards for emergencies; instead of having an emergency fund is a more brilliant idea. 

Allocate a no-spend weekend once a month:

You can try the No-Spend Weekend Challenge once a month! This weekend, you can avoid dining out, ordering in, traveling or going for a movie. Instead, you can stay at home and spend some quality time with just yourself, by reading a book or catching up on your favorite shows and cooking your favorite food. You can also have a movie night in or games night with your girl gang with potluck dinner! This way you can have a fun weekend without spending any money!

Minimize ordering in/ dining out:

Ordering in or dining out can be the easiest way for you to spend your money. Although it is okay to indulge in restaurants once in a while, it should not be a habit especially if you are living alone. Planning weekly meals will help you cut down on your dining out costs.

Pay off your debt:

You must always have a plan to pay off the debt, whether it is through loans, credit cards or any other source. To pay off your debt, try the snowball method, i.e. start paying them one at a time, starting from the lowest interest rate to the highest once you choose the strategy to pay off your debt, stick with it. Avoid taking on new credit card debt, loans or any other source of debt, especially with high-interest rates, especially if you can not afford to pay it back.

Reduce online shopping: 

While making a few urgent online purchases, you end up browsing and spending money on things not required at that moment. One trick to avoid overspending or delay purchases is to use the 30-day rule. This is basically the time period when a particular product or service catches your attention, till you actually make the purchase. You can leave this item in your cart. This will give you some time to think and understand if you actually need the product or not. One more tip is to not save your billing information while shopping online. This will reduce impulse purchases due to the extra work involved in filling your card details, shipping address etc.

Carpool to work:

Why travel alone and end up paying double the amount of money, when you can easily carpool? Carpool with your work colleagues who stay in the same locality or with your friends, traveling for work in the same locality. This way, you will end up saving money as the travel cost will be split accordingly.

Look for cheaper alternatives

When it comes to saving money in 2023, exploring cheaper alternatives is a wise strategy. Many daily expenses can be trimmed by finding more cost-effective options. Whether it’s opting for generic brands at the grocery store, considering second-hand purchases, or comparing prices before making a significant investment, seeking alternatives can significantly impact your savings. By making these small changes in your spending habits, you can accumulate substantial savings over time without compromising your lifestyle. So, keep an eye out for opportunities to replace costly choices with budget-friendly alternatives.

Make your own coffee

Why spend Rs. 300 or more everyday from your favorite coffee shop, while going to work when instead you can easily make coffee at home? Yes, it is okay to purchase coffee, but not everyday. By making your own coffee, slowly you will start reducing your expenses and save money even if it is a small amount.

Upskill yourself, so you can ask for that raise:

There are various free courses available online which will help you upskill yourself, which will help you negotiate on that raise you deserve.

Create a separate ME Account for your Fun Fund

A fun fund or a ‘ME Account’ is a fail-proof way to save money.  In order to create a ‘ME account’, you will have to create a separate savings account which will be used for all leisure expenses and you should ONLY spend from that. This fund is basically the money you keep aside for whatever you want, whenever you want!

Check out this blog to know more.

Keep your needs and wants separate:

Spending frivolously without differentiating between needs and wants will end up with a hole in your pocket. Whenever you are tempted to buy something you don’t need, start thinking about your goals and for what you are actually saving for. It is justified to spend on needs and essentials. However, wants can wait till they turn into needs. It is better to put that amount in your respective funds to achieve your money goals.

Save Taxes:

LXME’s Tax Saving plan is an expert-backed portfolio of a mutual fund, which further diversifies risk and is monitored by experts. Invest to save for tax and create wealth by targeting a return of 16%*. 

*Returns are calculated in mutual funds as per past performance and are subject to market risk. 

Create an emergency fund:

As the name suggests, an Emergency Fund is a safety net against financial turmoil. This interruption can be due to a medical emergency, unemployment, home or car repairs, unforeseen accident, loss of regular income, or other unexpected events. It is recommended that each individual or family set aside at least 6-8 months equivalent of their monthly expenses for their emergency fund.

Start investing for your goals, retirement etc.

Think about the other goals you are saving for! Do you want to travel the world, buy your own home, buy that designer bag or set up a business? It is also very crucial to start saving for retirement! To fulfil your goals, you will have to understand how much money you need for each of them and when you want to achieve them! By using the LXME’s Goal Calculator, you will be able to know how much you need to invest! Also, check out LXME’s Retirement Calculator to start your Retirement Planning

Take part in LXME’s Savings Challenges

Take part in the LXME’s Savings and Investment Challenge, which will help you save from Rs 25,000 to Rs. 1,00,000. Check out the challenge on the LXME App.

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FAQs – Common Questions About How To Save Money from Your Monthly Salary

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