How to Start Saving If You Have Never Saved Before

Most Indians do not have a savings habit. An RBI survey found 76% of adults have no financial plan. If that includes you, do not feel bad — reading this already puts you ahead.

The One Rule That Matters: Pay Yourself First

The moment salary hits your account, move a fixed amount to savings before spending on anything else. ₹2,000/month is a fine start. The amount matters less than the habit.

The 50-30-20 Framework

50% for needs (rent, food, EMIs), 30% for wants (eating out, shopping), 20% for savings. Not rigid — adjust to your life. Even 10% or 5% is a valid start. Build the muscle first, then increase.

Where to Put Your Savings

First ₹1-2 lakh: emergency fund in a savings account or liquid fund (instant access). After that: split between PPF (safe, tax-free) and SIP in index fund (growth). That is your complete beginner strategy.

Mistakes to Avoid

Do not wait for the "right time." Do not start too aggressively (₹15K first month then nothing). Do not treat your savings account as backup spending. Open a separate bank account for savings — one without UPI linked to it.

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