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“I am just beginning my career. My monthly salary is in the range of Rs, 15000 per month. How can I manage my expenses within my means and still be able to save some money?”

If this is a question on any of your minds, then this blog can help you out. There are some simple principles to follow and practical ideas to implement them. Let’s get started.

First thought to internalize is that there is no absolute number to call as a small salary. A person earning 15K may spend only 12K per month, and thus manage to set aside a decent monthly saving. Whereas a person earning 80K per month may spend beyond his means and still be in debt!

The important takeaway is – not to fall for peer pressure. Never blindly assume that you aren’t earning enough, and brood over it. Just work out a financial budget and saving plan according to your earnings. And you will see a simple, disciplined living style can make even small salaries look big.

No credit cards or personal loans

The first and most effective step to take is saying NO to credit cards or personal loans, even when offered easily.  Both these instruments lead to debt building up on a regular basis, and very soon you will completely lose control over your monthly budget.

Use UPI as far as possible, it has ZERO transaction charges for any payments. You can have more than one UPI ID configured if you want to segregate your accounts and expenses. You can also get a RuPay debit card that is issued by all major banks. RuPay cards are issued by the Government of India and also have ZERO transaction charges. Avoid using VISA, MasterCard and other payment gateways, they charge heavy transaction charges.

In terms of convenience, using UPI or debit cards are even better than credit cards. It works at the click of a button. You can pay anybody at any time. There is no EMI payment to worry about, no climbing interest rates. You know exactly how much money you have to spare, and you spend within your means. It might be tempting to see your friends spending exorbitantly and then taking personal loans. But just remember, when the debt keeps mounting, one cannot live peacefully.

Avoid impulse buys

The urge to buy new clothes, shop online, eat outside, watch a movie – these are common wishes of a youth. But are these mandatory expenses? No. These are called discretionary expenses, and it’s perfectly possible to live without indulging too much in these pleasures. Set a limit for such discretionary expenses based on your salary. The general recommended limit is 15% of your salary for fun and pleasure. Ensure you don’t exceed this limit at any cost.

When you are tempted to make an impulse buy, the simple trick is to just walk away for a few minutes. The temptation will reduce after a short while, and you will think about whether you really need that new dress or a new model phone. A survey conducted on online shoppers has indicated, close to 45% of the buyers regret their buys after a few minutes! And close to 35% of them said they did not need the item they just purchased. They just got carried away by all the marketing hype!

Save a little every month

You’ll be surprised how much a meagre saving of Rs, 2000 per month can grow into, after a few years! Go for savings instruments which don’t allow easy withdrawals, so that you are not tempted to pull out from your savings unless there is an emergency need.

Start a PPF account, or a Sukanya Samruddhi Yojana in your girl child’s name. Choose a Fixed Deposit or Recurring deposit scheme in your bank. You can also create a SIP account into some well performing Mutual Funds. These are all tried and tested methods of saving. Don’t fall for any dubious schemes which offer exorbitant interest rates for your money.

If your annual salary is under Rs, 2.5L then you are not liable for Income Tax. So, no need to worry about tax saving instruments.

An ideal investment option for you will be Chit Funds. Make small monthly contributions to a chit scheme, for a fixed tenure of 2-3 years. Withdraw your money at the end of the tenure with good returns, and earn in the range of 7-10%. In case of urgent need for funds, you can withdraw the entire prize money anytime during the chit scheme tenure. No penalties, no debt. It’s your own money!


Shanthala Chits has been in the business of chit funds for over 2 decades now. We are a Government approved chit fund company with a 25 year successful track record and thousands of satisfied customers. Shanthala Chits is registered under the Chit Fund Act of 1982, Government of Karnataka. We are one of the most popular chit fund houses based out of Bengaluru, known for our customer satisfaction and secure investments.

Our Chit schemes range from a monthly contribution of Rs 6000 to Rs 1,00,000 to suit every budget. You can pick a chit scheme with an appropriate monthly installment for meeting several of your short-term financial needs. Our chit schemes are for a tenure of 25 Months.

Get in touch with us and start with an investment scheme. We will be glad to help you out with the right scheme that matches your needs.

Anuradha C
Anuradha C

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