How to Save Money as a Student – Smart Tips
Saving money in today’s world may seem tough, especially when living on a fixed income. But with some planning and small changes in habits, anyone can start saving effectively, even on a tight budget.
Step 1: Track Every Expense and Note Your Savings Money
The first step to saving money is knowing where your money goes.
Write down every small and big expense — coffee, groceries, rent, mobile bills, tips, EMIs — everything. You can use:
A notebook
Google spreadsheet
Free budget tracking apps (like Walnut, Money Manager, etc.)
Real-Life Example:
Ramesh, a private-sector accountant earning ₹40,000/month, listed all his monthly expenses — including saree shopping and small spends. Once he saw where his money was going, he became more aware and inspired to save money.
After listing, categorize your expenses: food, transport, rent, bills, subscriptions, etc. Tally the totals. Don’t forget to check your bank and credit card statements for hidden expenses.
Step 2: Make a Budget & Add Savings Money as a Fixed Expense
Now that you know your spending, make a realistic monthly budget.
Include a “Savings” category in your monthly plan.
Start with even ₹500 or ₹1000, but gradually aim to save 20% of your income. Use the 50/30/20 rule if possible.
Step 3: How to Save Money on a Tight Budget?
If your budget is tight, you’ll need to adjust smartly:
Cut Unnecessary Expenses:
Reduce takeout and movie outings
Cancel unused subscriptions
Use Wi-Fi instead of expensive mobile data
Simple Daily Saving Tips:
Cook at home instead of eating out
Use public transport when possible
Buy during sales or use cashback apps
Delay impulse purchases by 48–72 hours
Step 4: Set Clear Saving Money Goals
Setting goals keeps you motivated for Save Money. Write down:
Short-Term Goals (1–3 years):
Emergency fund
Travel plan
Car down payment
Long-Term Goals (4+ years):
Retirement savings
Child’s education
Dream home
Step 5: Use "If/Then" Planning
Life is unpredictable — be ready.
Example:
If I lose my job, then I’ll cut all non-essential spending and use my emergency fund.
This gives you peace of mind and control and Save Money
Step 6: Reward Yourself for Saving Money
Give yourself small rewards for hitting saving milestones:
weekend trip
A new phone
Gift shopping for loved ones
These help make saving a fun habit! For Your Saving Money
Step 7: Prioritize Your Goals Wisely
You may not afford every goal at once. Ask yourself:
Should I repay debt first?
Should I build an emergency fund?
Is retirement more urgent now?
Make choices based on your income, age, and priorities.
Step 8: Grow Your Savings – Don’t Let It Sit Idle
Your money should work for you.
Short-Term Options:
Savings Account
Fixed Deposit (FD)
Recurring Deposit (RD)
Long-Term Options:
Mutual Funds
Public Provident Fund (PPF)
NPS / Retirement Plans
Stocks (if you understand them)
Step 9: Use Job Benefits to Save More
If you are employed, use workplace financial tools:
EPF / 401(k)
Health Savings Account (HSA)
Employee Stock Options (ESOPs)
Auto deposit part of your salary into savings
Step 10: Automate Your Savings
Make saving Money effortless:
Set auto-transfers to savings account
Use round-up apps (they save change from purchases)
Real Story Example
Rahul was a college student. He used to get Rs. 2000 every month for pocket expenses but he used to spend it on useless expenses. Once his money got over before the month was over. He realized that his money got over before the month was over. So he decided that he will save every month. Now he has realized how important savings are in our life. So from now on he keeps some part of his pocket money that he gets every month.