No, it’s not a clickbait. There are many people who have done this and a lot many people have tried but unfortunately couldn’t be successful. We will see 5 different tips on how to save 70% of our salary. The concept of savings is always the same, it’s just about spending less. The less we spend, the more is saved. When it comes to saving 70% of our salary, it’s going to be hard and very restrictive but without any compromise on what we need.
For the pretext, we will consider a few things.
- City the same as my working city i.e Bengaluru.
- Salary of 30K per month.
- Bachelor/Spinster staying in sharing.
- Sharing of a 2BHK among 4 persons.
- Buy in bulk: I have tried every way of purchasing grocery – offline, online and through wholesalers. Wholesalers don’t work in most of the cases as the normal accommodation group is around 4 people. Buying from Bigbasket worked the best for me if we decide to buy groceries for the entire month. If we buy a modest grocery in Bangalore (less of junk like biscuits, cake, icecreams, etc. I am not saying zero but less ) including some snacks and confectionaries, expenses would be very around 8K per month on a higher side. As we are considering 4 people in the apartment, so 8k being divided equally gives us 2k and we are left out with 7k for remaining expenses.
- Eat at Home: Bangalore is a fancy city and its very easy to fall in the trap of online ordering. Since our goal is to save 70% of our salary, we need to cut down these kinds of unnecessary expenses. Also, eating more of the outside is not going to do any justice to our health. Let’s say we order our favorite biryani once a week. An average biryani in Bangalore costs around Rs.150 which if we eat once in a week, will make a dent of Rs.600 in our pocket. This leaves us with Rs. 6400 for remaining expenses. If interested you can read some details about minimalist eating habits here.
- Rent as required: We have a humongous amount of options in Bangalore to rent out a flat. For a 2BHK, one can pay 10K and also 50K depending on locality and the house size. We can save money by staying in individual houses and avoiding the ones in society. 99% of the bachelors/spinsters don’t use the amenities frequently and it doesn’t make any sense to pay for it. A decent 2BHK can be found at the cost of Rs. 15K per month in a decent locality. This house rent will cost us Rs. 3750/month and leaves us with Rs. 2650.
- Stay close to Office: Staying close to office saves us a lot of time from the infamous Bangalore traffic. Bangalore is not popular for its infrastructure and traveling can lead to a major amount of time waste. Staying close to the office also saves us from any expense in traveling. If we consider the worst scenario that we need to rush sometime even for a distance of 1KM, let’s add a cost of Rs. 500 per month. After all this, we are saved with Rs. 2150 for the month.
- Party Less: If you have forgotten in the excitement of counting your expenses, let’s remind ourselves that we are actually saving 70% of our salary. It’s best to party at home with friends with the kind of noise we would love to have around us than being annoyed at people in the pub. A can of beer normally cost anywhere between Rs. 120 to Rs.150. If we decide to drink sensibly and once in a fortnight, our expenses will be around a max of Rs. 600 per month on parties. We are still left with Rs.1550 for this month. This is insane.
Out of your Rs. 1550, a small amount of money would be spent on utility bills like wifi, electricity, and water. Still, after all this, we are saved with just over Rs. 1000 for the month. Consider that, we haven’t tried to squeeze anywhere throughout the process to save extra money. We are just trying to spend sensibly and being frugal without sounding as a miser. You can read the difference between being frugal and miser. What we are trying to follow is a minimalist way of living. We are only spending on what we need and rather than what we want. There are no boundaries to our wants, so we must focus on need.
No, if you finished reading so far, let me remind you that you have Rs.1000. If you would have squeezed a little bit, you might have around Rs.2000. With this extra money, you can buy some clothes for you. If you want to know about the minimalist cupboard, read my journey here. A
After following all the steps above, you have successfully reached the milestone to “save 70% of our salary.” What’s next with the savings. Read about the 5 step minimalist financial planing and let us know if you need more information on what to do with your 70% savings.
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