How to Save ₹5000 Every Month on a Low Salary in India: A Real-Life Inspired Guide

Saving money sounds easy on paper, but when your salary is low, it can feel nearly impossible. After rent, food, transport, and bills, there’s hardly anything left to tuck away. But what if I told you that saving ₹5000 every month is achievable, even with a monthly income of ₹15,000 to ₹20,000?

Let me share the inspiring story of Aarti Sharma, a 27-year-old data entry operator from Lucknow who manages to save ₹5000 every month—despite earning only ₹18,000.

Aarti’s Story: Real Struggles, Real Solutions

Aarti lives with her younger brother in a 1-room rented flat. Her goal is to save enough for her brother’s college fees and build an emergency fund. When she first started working in 2021, she used to save less than ₹1000 per month. But within a year, she figured out ways to cut wasteful spending, plan expenses, and automate savings—and now saves over ₹5000 every month.

So, what’s her secret?

Let’s break it down step-by-step so you can follow a similar path—tailored to real Indian life, inflation, and expenses.

Step 1: Create a Zero-Based Budget

The zero-based budgeting method helped Aarti gain control. Each rupee had a purpose.

Example of Aarti’s Monthly Budget (₹18,000 income):

A budget doesn’t restrict freedom—it gives it structure. She uses apps like Walnut, Money View, or just an Excel sheet to track expenses daily.

Step 2: Cut Down on Variable Expenses

Aarti says the biggest transformation came from cutting down food and shopping expenses.

Here’s how she did it:

1. Cook at Home, Carry Tiffin

Eating out cost her ₹100–₹150 per meal. Now she cooks khichdi, paratha-sabzi, or pulao in batches. Savings? Over ₹1500/month.

2. Clothing & Shopping

She stopped impulsive purchases on Myntra and Amazon. Now, she sets a limit of ₹500/month for clothing or beauty items.

3. Cut OTT and Premium Apps

She cancelled Netflix and uses her friend’s family plan for Amazon Prime. Entertainment is now limited to free YouTube channels and reading books on Google Play Books.

Step 3: Live Below Your Means

Aarti resisted the urge to upgrade her phone or buy a scooter on EMI. Instead, she uses public transport and an older smartphone.

Key mindset:

“If you can’t afford it twice, you can’t afford it once.”

Aarti delayed gratification. Instead of chasing lifestyle upgrades, she focused on financial peace.

Step 4: Automate Savings First, Not Last

Aarti follows the “Pay Yourself First” principle. On salary day:

• ₹1000 goes into a recurring deposit (RD).
• ₹1000 goes into a SIP (mutual fund for long-term).
• ₹1000 into an emergency savings account.
• ₹2000 into a digital gold investment (short-term savings for her brother’s fees).

She doesn’t wait to see “what’s left at month-end.” Savings are non-negotiable.

Recommended Apps:

• Groww, Kuvera (SIP/mutual fund)
• Paytm Gold (for small savings in digital gold)
• Jupiter, Fi Money, or NiyoX for setting up automatic savings jars.

Step 5: Earn More On the Side (Side Hustle)

With a basic knowledge of MS Excel and Hindi typing, Aarti started freelance data entry on platforms like:

• WorkIndia
• Freelancer.com
• Internshala
• Upwork (basic gigs)

She makes an additional ₹2000–₹3000/month which she puts directly into her goal-based FD.

Even if you work in retail, as an office assistant, or a field worker, small skills like spoken English, Canva design, or online surveys can help supplement your income.

Step 6: Use Government Schemes & Offers

Aarti made use of:

• Jan Dhan Account: Zero balance, debit card, access to govt schemes.
• PM Jeevan Jyoti Bima Yojana: ₹330/year life insurance.
• Free PDS ration: Reduced monthly grocery costs for BPL cardholders.

Explore state-wise schemes for health insurance or subsidy benefits. Visit: https://mygov.in

Step 7: Mindset Shift – From Scarcity to Abundance

Saving money isn’t only about math—it’s psychology.

Aarti created visual goals—a picture of her brother’s college brochure, and her own future home printed and pasted on her cupboard. Every rupee saved felt like a step forward.

She also reads Indian personal finance blogs like:

• JagoInvestor
• BasuNivesh
• Finshots

…and watches finance influencers on YouTube like:

• CA Rachana Phadke Ranade
• Labour Law Advisor
• Pranjal Kamra

These helped her stay motivated and learn new tricks.

Additional Tips to Save ₹5000 Every Month on Low Salary

Conclusion: You Can Do It Too

Aarti’s story is not unique. Thousands of Indians survive and save smartly on modest incomes. It’s not about how much you earn—it’s about how you manage what you have.

So if you’re earning ₹15,000 or ₹20,000 a month and think saving ₹5000 is a dream—it’s time to wake up and make it a plan.

All you need is:

• A goal.
• A budget.
• Discipline.
• Consistency.

As Aarti says:

“Saving gave me control over my life. Every rupee saved brings me closer to freedom.”

Are you ready to start your savings journey?
Tell us your monthly income, and I’ll help you make a custom savings plan—just like Aarti’s.