Money Tips: How to Save ₹5,000 Every Month on a ₹30,000 Salary

Disclaimer: Ujjivan Small Finance Bank does not offer personal finance advice or products. This blog is written for generic information only.

July 23, 2025

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Do you often feel like your salary vanishes before the month ends? Saving money might seem impossible on a ₹30,000 salary, but with the right strategies, you can effortlessly set aside ₹5000 every month—without sacrificing your lifestyle. Whether you're planning for an emergency fund, a big purchase, or growing your money through a high-interest savings account or Fixed Deposit (FD), this guide will show you exactly how to take control of your finances and build a secure future.

 

Step 1: Budget Like a Pro (50-30-20 Rule)

One of the easiest ways to manage your income is by following the 50-30-20 rule:

  • 50% (₹15,000) for Needs - Rent, groceries, utilities, transportation
  • 30% (₹9,000) for Wants - Dining out, shopping, entertainment
  • 20% (₹6,000) for Savings & Investments - Savings account, FD, SIPs, emergency fund

 

Since we aim to save ₹5000, you can tweak this by cutting non-essential spending and allocating more towards savings.

 

Step 2: Open a High-Interest Savings Account

Instead of keeping your savings idle, park them in a high-interest savings account. Ujjivan offers Savings Accounts that provide higher interest rates, up to 7.5% p.a.*, helping your money grow over time. Set up an auto-debit of ₹5000 from your salary account to a savings account to ensure consistent savings.

 

Step 3: Cut Down on Unnecessary Expenses

Look at your monthly expenses and identify areas to save:

  • Cook at Home: Eating out 3-4 times a week costs around ₹4,000-₹5,000. Reduce it to once a week and save at least ₹2,000.
  • Cancel Unused Subscriptions: Are you using all your OTT subscriptions? Cutting down on extra services can save ₹500-1000.
  • Use Public Transport or Carpool: If you spend ₹4,000 on fuel or cabs, switch to public transport to cut down at least ₹1,500-2,000.
  • Avoid Impulse Buying: Unplanned shopping can drain your salary. Stick to a shopping list and avoid unnecessary purchases to save at least ₹1,000-2,000.

 

By making these small changes, you can easily free up ₹5000 without compromising on essential expenses.

 

Step 4: Invest in a Fixed Deposit (FD)

A Fixed Deposit (FD) is an excellent way to park your savings and earn guaranteed returns. With Ujjivan Fixed Deposits, you can earn more than 8% p.a. subject to terms and conditions, ensuring that your money grows safely over time. You can set up a recurring deposit where ₹5000 is automatically invested each month in an FD.

 

Step 5: Earn Extra Income for Better Savings

If cutting expenses isn’t enough, explore side income opportunities:

  • Freelancing (writing, graphic design, data entry) – Earn ₹2,000-₹5,000 extra.
  • Online Tutoring – Earn ₹5,000+ by teaching subjects you’re good at.
  • Selling Handmade Crafts or Products on Instagram or Etsy.

 

This additional income can be directly put into your savings account or FD, accelerating your financial goals.

 

Step 6: Track & Automate Your Savings

Automate savings with a Standing Instruction to transfer ₹5000 to an FD or savings account immediately after you receive your salary.

  • Review your expenses every month to ensure you’re sticking to the plan.
  • With consistent effort and smart money management, saving ₹5000 a month is absolutely achievable, even with a ₹30,000 salary.

 

Disclaimer: The above examples are for illustration purposes only and shouldn’t be construed as an investment advice. Please consult a SEBI-registered financial adviser to make informed financial decisions.

Final Thoughts

The key to financial stability is discipline and smart decision-making. By budgeting, reducing unnecessary expenses, leveraging a high-interest savings account, and investing in FDs, you can save ₹5000 per month effortlessly. Over time, this habit will help you build a strong financial foundation and reach your goals faster!

 

 Kick-start your financial journey with Ujjivan. Save more with our high-interest Savings Account and Deposit products. Need cash for your business or personal needs? Apply for MSME Loans or Micro Loans with us – we offer competitive rates and quick disbursal. We also offer vehicle loans and home loans tailored for your unique requirements. Experience a smooth banking journey with Ujjivan SFB!

 

Disclaimer:

The contents herein are only for informational purposes and generic in nature. The content does not amount to an offer, invitation or solicitation of any kind to buy or sell, and are not intended to create any legal rights or obligations. This information is subject to updation, completion, amendment and verification without notice. The contents herein are also subject to other product-specific terms and conditions, as well as any applicable third-party terms and conditions, for which Ujjivan Small Finance Bank assumes no responsibility or liability.

 

Nothing contained herein is intended to constitute financial, investment, legal, tax, or any other professional advice or opinion. Please obtain professional advice before making investment or any other decisions. Any investment decisions that may be made by the you shall be at your own sole discretion, independent analysis and evaluation of the risks involved. The use of any information set out in this document is entirely at the user’s own risk.  Ujjivan Small Finance Bank Limited makes no representation or warranty, express or implied, as to the accuracy and completeness for any information herein. The Bank disclaims any and all liability for any loss or damage (direct, indirect, consequential, or otherwise) incurred by you due to use of or due to investment, product application decisions made by you on the basis of the contents herein. While the information is prepared in good faith from sources deemed reliable (including public sources), the Bank disclaims any liability with respect to accuracy of information or any error or omission or any loss or damage incurred by anyone in reliance on the contents herein, in any manner whatsoever.

 

To know more about Ujjivan Small Finance Bank Products Visit:"https://www.ujjivansfb.in"

 

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to Ujjivan Small Finance Bank Limited or its licensors. Unauthorised use or misuse of any intellectual property, or other content displayed herein is strictly prohibited and the same is not intended for distribution to, or use by, any person in any jurisdiction where such distribution or use would (by reason of that person’s nationality, residence or otherwise) be contrary to law or registration or would subject Ujjivan Small Finance Bank Limited or its affiliates to any licensing or registration requirements.

   

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FAQs

1. How can I save money if my rent is too high?

Consider sharing an apartment, moving to a less expensive area, or negotiating rent with your landlord. These steps can save at least ₹3,000-₹4,000 monthly.

2. How can I reduce my grocery bills?

Buy in bulk, use cashback offers, compare prices, and plan weekly meals to avoid unnecessary purchases. This can save up to ₹2,000 per month.

3. What’s the best way to automate savings?

Set up an auto-transfer to your savings account or FD. This ensures you save before you spend.

4. Can I still enjoy life while saving ₹5000 per month?

Absolutely! The key is smart spending. Prioritize experiences over materialistic purchases and make use of discounts, coupons, and free events.

5. Should I invest in an RD (Recurring Deposit) instead of an FD?

An RD is a great option if you prefer investing a fixed amount every month. If you have a lump sum, an FD is better for locking in higher interest.

6. How can I make my savings grow faster?

Consider SIPs in mutual funds, FD laddering, or additional sources of income to accelerate your savings. Please note that mutual fund investments are subject to market risks, read all scheme-related documents carefully. Consult a financial advisor to make informed financial decisions.

7. What’s a practical way to control impulse spending?

Follow the 24-hour rule: Wait a day before making any non-essential purchase. More often than not, you’ll realize you don’t need it.

8. Can I save money if I have a loan or EMI to pay?

Yes. Refinance your loan for a lower interest rate, prepay whenever possible, and cut down on non-essentials to make room for savings.

9. How can I motivate myself to stick to my savings plan?

Set short-term and long-term goals, track your progress, and reward yourself (without overspending) when you achieve milestones.

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