How to save money on a low income despite rising inflation

EducationHow to save money on a low income despite rising inflation

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Inflation is rising, the daily living expenses are on an increasing trend. But if your salary is still the low and same, you will definitely be worried about your future. If you are earning an income that has become equal to your expenses, then read on. You definitely cannot search for a new job during the inflation and unemployment times. But keep up with the same job and cut down on your expenses for the time being. Expenses can be categorized into necessary ones and unnecessary ones. Now the table would list different items for each person depending on what they perceive as required and not so required. Here are some tips on how you can save a bit of money with low income amid the inflation times:

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1) Start a Recurring Deposit:

For example, if you earn 10,000 Rs per month as your salary, think of investing at least Rs. 500 in a Recurring Deposit per month. You never know how these small savings will help you in the long run in your future. Recurring Deposits attract good returns on investment and also help you develop a habit of savings. Now if you wonder how to save that Rs. 500 note when you are already living on a meager income, then understand what is that unnecessary habit of shopping just like that or eating from a restaurant more than thrice a month that you can get rid of to save this Rs. 500 note and put the money in a Recurring Deposit.

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2) Invest money in a PF account:

Provident Funds Account provides a 7.1% interest rate which is quite higher compared to bank fixed deposits and even recurring deposits. Not only is PF’s interest rate attractive but also it is a tax-saving instrument wherein if you keep investing some money in the PF account on a monthly basis, you will definitely see a huge plant of wealth accumulation in the PF Account after 15 years. You also can have the option to withdraw some money when you complete 5 years of the term with the PF account. So, get in touch with your own bank or a post-office to know further details and benefits about the PF account.

3) Fixed Deposits:

You may wonder what I am talking about when it comes to fixed deposits. How are you going to save money for an FD when yours is such a low income? Well, even if you save 1000 Rs in a period of two or three months, you can definitely approach a bank and open a fixed deposit account. You will get good interest rates if you decide to save that Rs. 1000 for a period of 5 or 10 years. But always remember that some savings are always better than no savings.

Last but not the least, you can also think of saving your money in a Savings Account in a bank and when you have saved at least 5000 Rs in a period of 6 months or 1 year in your bank, you can approach a jeweler and get a 1 gram gold coin. Gold’s value always rises and when you decide to sell off this 1-gram gold coin after 10 years of 15 years, you will get better returns as per the market rate then.

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