World Savings Day: 3 steps to start saving if you haven't started yetThe World Savings Day was established on October 31, 1924, during the 1st International Savings Bank Congress in Milano, Italy. World Savings Day is an annual celebration of the virtues of savings and thrift. For many in the new generation, saving is like a mirage. Everybody wants to ‘save’, but they can’t.

Expenses are rising, income is not enough, money is vanishing…there are thousands of excuses. The honest truth is that any money saved is money actually earned. Every single rupee spent today is a loss for your savings kitty. Do you know that if you save Rs 100 a week for twenty years, you will save Rs 1 lakh? Yes, that is without the interest or any return. We spend Rs 2,000 on a pizza party. We spend Rs 500 per movie ticket. We treat money like water while hanging out with friends. But, the money you spend goes out from your pocket to somebody else. This is how rich get richer, while poor stay poor. Here are three steps to start saving if you haven’t started yet.

Step 1 – Make ‘saving’ an expense item

The conventional money gurus always talk about making a budget and so on. We don’t like making budgets. So, if we tell you to make a budget and then save, we are pretty sure you will never do it. How about making ‘savings’ an expense item? This means just like other expenses, making savings an item.

So, here is what you do. You decide how much you want to save every month. When your salary SMS comes in, you save the money you had decided you would. In this way, you don’t need to wait till the month-end to save. You save on the very 1st/2nd day of the month. In this, you give precedence to saving over expenses. If you wait till the end of the month, chances are nearly 100% that you will practically save nothing.

Step 2 – Save 15% of salary

Many youngsters ask: How Much Should We Save? Well, the answer is easy – 100%. We are joking. Of course, you can’t save 100%. How about 30%? Still too much. How does 15% sound? Judging by your reaction it seems doable. So, save 15% of your salary. How do you save this money is up to you.

You can take it out as cash and keep it at home. You can transfer the money to a separate bank account. You can save it in best liquid funds. You can always do a systematic investment plan or SIP. There are options like depositing the money in a post office scheme, small-saving scheme, PPF, NSC etc. Irrespective of where you put the money, save 15% of your take-home salary. In six months, you will have saved almost one month’s salary. If you invest the savings properly, you can make a lot more money.

Step 3 – Save as soon as you save

Save as soon as you save may sound confusing but let us explain. Have you ever seen the Rs 500 you saved that was kept in your wallet? There is high chance you didn’t. Do you know why? Because a wallet is a place where money comes and money goes. If you save your money in a wallet, you will never see that money. Something will always come up. As a result, the savings will disappear. This is why it is important to actually ‘save’ what you save.

Let’s say you get a Rs 1,000 discount when you bought clothes for Rs 12,000. Take out Rs 1,000 from your wallet and keep it somewhere else. If you save Rs 250 on a movie ticket, save that Rs 250. Usually, the savings that we get from discounts or shopping get used for more purchases. The art of saving means you take away the money. This is why in earlier days, people used to save money in piggybanks or even in vessels that kept grains. It is very important to separate ‘saving’ from money.

Today is World Savings Day. If you haven’t entered the saver’s club yet, time to do it today. Happy Saving!

Kumar Shankar Roy

Kumar Shankar Roy is contributing editor with RupeeIQ. He can be contacted on