I have earned per month 30000 but not to savings anything what to do

Ans: It's commendable that you're keen to embark on your savings journey despite facing financial constraints. Let's explore practical strategies to kickstart your savings plan and build a secure financial future.

Understanding Your Financial Situation

Before diving into savings strategies, let's assess your current financial landscape and identify areas where you can optimize your resources.

Assessment of Financial Position:

At 29 years old and with an income of ?900 per month, you're at the beginning of your financial journey. It's essential to recognize your income level and prioritize prudent financial habits to lay a solid foundation for the future.

1. Budgeting Essentials:

Creating and adhering to a budget is fundamental to effective financial management, irrespective of income level.

Income Evaluation: Start by mapping out your monthly income sources, including salary, allowances, and any additional earnings.
Expense Analysis: Track your expenses meticulously to identify discretionary and non-discretionary spending categories. This will help pinpoint areas where you can cut back and redirect funds towards savings.
Prioritize Savings: Allocate a portion of your income towards savings as a non-negotiable expense. Even a modest amount can accumulate over time and contribute to your financial security.
2. Cultivating Saving Habits:

Inculcating disciplined saving habits is key to achieving your financial goals, regardless of your income level.

Start Small: Begin by setting achievable savings targets that align with your income and expenses. Even saving a nominal amount regularly can foster a habit of thriftiness and financial discipline.
Automate Savings: Explore options to automate your savings process, such as setting up recurring transfers to a designated savings account. This removes the temptation to spend and ensures consistent contributions towards your savings goals.
Track Progress: Monitor your savings progress regularly and celebrate milestones along the way. Seeing your savings grow can motivate you to stay committed to your financial objectives.
3. Exploring Income Enhancement Opportunities:

While your current income may be limited, exploring avenues to augment your earnings can bolster your savings potential.

Skill Development: Invest in acquiring new skills or enhancing existing ones that can increase your employability and earning potential. Consider online courses, vocational training programs, or freelance opportunities.
Side Hustles: Explore part-time or freelance gigs that complement your skills and interests. From freelance writing to tutoring, there are myriad opportunities to earn additional income outside of your primary job.
4. Seeking Professional Guidance:

Consider consulting with a Certified Financial Planner to devise a tailored savings strategy that aligns with your financial goals and aspirations. A financial planner can provide personalized guidance and recommendations based on your unique circumstances.

Conclusion

Initiating savings on a limited income may seem daunting, but with strategic planning, discipline, and perseverance, it's entirely achievable. By prioritizing budgeting, cultivating saving habits, exploring income enhancement opportunities, and seeking professional guidance, you can lay a strong foundation for a secure financial future.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in

Ans: Managing your finances on a monthly income of Rs. 15,000 can be challenging, but with careful planning and discipline, you can start saving money and secure your financial future. Let’s break it down step by step to help you make the most of your earnings.

Understanding Your Financial Situation
Monthly Income
Salary: Rs. 15,000
Expenses
List all your expenses to understand where your money goes. Typical expenses might include:

Rent: Rs. 4,000
Groceries: Rs. 3,000
Transportation: Rs. 2,000
Utilities (Electricity, Water, etc.): Rs. 1,000
Mobile/Internet: Rs. 500
Other Expenses (Entertainment, Clothing, etc.): Rs. 1,500
Total Expenses: Rs. 12,000

This leaves you with Rs. 3,000, which can be allocated towards savings and investments.

Creating a Budget
Step 1: Track Your Spending
Keep a record of every rupee you spend. This helps identify unnecessary expenses and areas where you can cut back.

Step 2: Categorize Expenses
Divide your expenses into categories: Fixed (rent, utilities) and Variable (groceries, entertainment). Focus on reducing variable expenses.

Step 3: Set a Savings Goal
Aim to save at least 10-20% of your income. In your case, try to save Rs. 1,500-3,000 monthly.

Reducing Expenses
Housing
Negotiate Rent: Talk to your landlord for a possible rent reduction.
Roommates: Consider sharing accommodation to split costs.
Groceries and Food
Plan Meals: Make a weekly meal plan to avoid impulse buying.
Bulk Purchase: Buy non-perishable items in bulk for discounts.
Cook at Home: Eating out less can save a significant amount.
Transportation
Public Transport: Use buses or trains instead of taxis or autos.
Carpool: Share rides with colleagues or friends to cut costs.
Utilities
Energy Saving: Use energy-efficient appliances and switch off when not in use.
Optimize Plans: Choose cost-effective mobile and internet plans.
Increasing Income
Part-Time Work
Consider part-time jobs or freelancing to supplement your income. Skills like tutoring, writing, or graphic design can be monetized.

Selling Unused Items
Sell items you no longer need. Platforms like OLX or Quikr can help you find buyers.

Building an Emergency Fund
An emergency fund covers unexpected expenses and prevents debt. Aim to save 3-6 months of expenses. Start with a small amount and gradually build it up.

Automate Savings
Set up an automatic transfer of Rs. 1,500-3,000 to a separate savings account. This ensures consistency.

Investing for the Future
Systematic Investment Plan (SIP)
Start a SIP with a small amount. Mutual funds can be a good option for long-term growth. You can start with as low as Rs. 500 per month.

Recurring Deposit (RD)
An RD in a bank can help you save regularly. It’s safe and provides fixed returns.

Insurance
Health Insurance
Get a basic health insurance plan. It protects you from high medical costs and ensures you don’t have to dip into savings during emergencies.

Avoiding Debt
Credit Cards
Avoid using credit cards if you can’t pay the full amount each month. High-interest rates can lead to debt accumulation.

Personal Loans
Take personal loans only for essential needs. Ensure you can manage the EMIs within your budget.

Financial Discipline
Avoid Impulse Purchases
Before buying anything, ask yourself if it’s necessary. Wait for 24 hours before making a purchase decision.

Stick to the Budget
Review your budget regularly and adjust it as needed. Discipline is key to financial stability.

Final Insights
Managing finances on a limited income requires discipline and strategic planning. Track your spending, create a realistic budget, and prioritize savings. Reduce unnecessary expenses and explore ways to increase your income. Building an emergency fund and starting small investments can secure your financial future. Stay committed to your financial goals and regularly review your progress.

You can achieve financial stability and growth even with a modest income. Start small, stay disciplined, and watch your savings grow over time.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in

Ans: At 32 years, earning Rs. 1.3 lakh monthly is commendable. Your expenses and EMI are under control, leaving substantial surplus income for savings and investments. This is the right time to set long-term financial goals and take strategic actions to secure your financial future.

Current Financial Snapshot
Monthly Income: Rs. 1.3 lakh

Monthly Expenses: Rs. 20,000

EMI: Rs. 10,000

Surplus Income: Rs. 1 lakh

Current Savings: None

Immediate Financial Goals
1. Create an Emergency Fund:

Save at least six months' worth of expenses, including EMIs.

Use a high-liquidity account or fixed deposit for this fund.

2. Review Loan Repayment:

Clear your current EMI loan as soon as possible.

Avoid taking any additional loans for the next few years.

3. Track and Optimise Expenses:

Review your expenses for any unnecessary spending.

Allocate a fixed amount towards savings and investments.

Long-Term Financial Goals
1. Retirement Planning:

Start planning for retirement early to benefit from compounding.

Allocate a portion of savings to equity mutual funds for long-term growth.

2. Wealth Creation:

Invest regularly through SIPs in actively managed mutual funds.

Diversify into large-cap, mid-cap, and small-cap mutual funds.

3. Tax Planning:

Invest in tax-saving instruments under Section 80C and 80D.

Focus on equity-linked options for better post-tax returns.

Building a Savings Plan
1. Automate Savings:

Set up automatic transfers to savings and investment accounts.

Begin with 50% of your surplus income (Rs. 50,000 per month).

2. Diversify Investments:

Allocate funds to mutual funds, fixed-income instruments, and gold.

Actively managed mutual funds outperform index funds in volatile markets.

3. Avoid Direct Funds:

Direct funds lack professional guidance and regular review.

Regular funds through a Certified Financial Planner ensure better portfolio management.

Investment Strategies
1. Mutual Funds:

SIPs offer disciplined investing and long-term wealth creation.

Actively managed funds provide higher growth than index funds.

2. Debt Instruments:

Include debt mutual funds for stability and diversification.

Debt funds are tax-efficient but taxed as per your income slab.

3. Insurance Coverage:

Take adequate health insurance to cover medical emergencies.

If you have dependents, purchase term life insurance for their financial security.

Tax Implications
1. Mutual Fund Gains:

Equity mutual fund gains above Rs. 1.25 lakh are taxed at 12.5%.

Debt mutual fund gains are taxed as per your income slab.

2. Section 80C Benefits:

Invest in ELSS or PPF for tax-saving benefits.

Consider a balanced mix of tax-saving and growth-focused instruments.

Financial Discipline
1. Set Clear Goals:

Define your short-term and long-term financial goals.

Align savings and investments to these goals.

2. Track Progress:

Regularly review your income, expenses, and investments.

Make adjustments based on life changes or market conditions.

3. Avoid Impulsive Spending:

Stick to your budget and avoid lifestyle inflation.

Prioritise savings over non-essential purchases.

Final Insights
You are in an excellent position to build wealth with disciplined financial planning. Focus on clearing your loan quickly and creating an emergency fund. Begin investing in mutual funds through SIPs and diversify across asset classes. Work with a Certified Financial Planner to create a tailored investment strategy. By staying consistent, you can achieve your financial goals and secure a prosperous future.

Best Regards,

K. Ramalingam, MBA, CFP,

Chief Financial Planner,

www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment

Ans: You are facing a very common challenge. Many earn well but struggle to save. The good part is that you are aware and looking for a solution. That’s the first important step.

Let me now give you a 360-degree analysis and practical advice to help you manage better.

 
 
1. Monthly Income and Expense Breakdown

Your salary is Rs. 78,000 per month.
 
 

House rent is Rs. 20,500.
 
 

EMI for one loan is Rs. 17,000.
 
 

Other EMIs total Rs. 15,000.
 
 

Monthly living expenses are Rs. 15,000.
 
 

After these, almost nothing is left.
 
 

There is no saving happening right now. But small adjustments can bring big changes.
 
 
2. Rent Expense Evaluation

Rent is the biggest cost. Rs. 20,500 is over 26% of your income.
 
 

Ideally, rent should not exceed 20% of income.
 
 

Check if slightly cheaper home is available.
 
 

A Rs. 3,000 to Rs. 4,000 saving in rent helps.
 
 

Shifting may feel hard. But it gives monthly relief.
 
 

Stay near public transport to reduce travel cost also.
 
 

Even small rent change brings long-term benefits.
 
 
3. EMI Consolidation Strategy

You have Rs. 32,000 total EMI every month.
 
 

This is over 40% of your income. That is too high.
 
 

Ideally, EMI should be under 30% of income.
 
 

Check if some loans are high-interest short-term loans.
 
 

If possible, combine all EMIs into one with lower interest.
 
 

Talk to your bank about loan consolidation options.
 
 

Even 2–3% interest reduction will help monthly cash flow.
 
 

Loan restructuring gives breathing space.
 
 
4. Monthly Expenses Assessment

You spend Rs. 15,000 monthly for all needs.
 
 

This looks reasonable, but break it down category-wise.
 
 

Note how much goes to groceries, mobile, subscriptions, fuel, etc.
 
 

Use a simple mobile app to track. Or a paper log.
 
 

You may find Rs. 1,000–2,000 saving opportunity easily.
 
 

Cancel unused services like OTT or apps.
 
 

Prepare weekly shopping list. Avoid impulse purchases.
 
 

Every rupee saved adds up.
 
 
5. Surrender Low-Return Insurance Policies (if any)

Do you hold any LIC, ULIP or endowment plan?
 
 

These plans mix insurance with investment. They give poor returns.
 
 

If held for more than 3 years, check surrender value.
 
 

If suitable, surrender and reduce premium load.
 
 

Take separate term insurance if not already done.
 
 

Reinvest in SIP when your cash flow improves.
 
 

This step will free up space in your budget.
 
 
6. Start Emergency Fund, Even Small

You may feel saving is impossible now.
 
 

But even Rs. 500–1000/month is a start.
 
 

Keep this money in a separate savings account.
 
 

Don’t touch unless it’s urgent.
 
 

Over time, it builds up to 3–6 months of expenses.
 
 

Emergency fund avoids fresh loans in future.
 
 

Even small savings matter. Start tiny, but stay regular.
 
 
7. Avoid New Loans or EMI Purchases

Say no to credit card EMIs or online EMIs.
 
 

These temptations disturb cash flow and cause stress.
 
 

If you need anything, plan and save first.
 
 

Delay buying until you have money.
 
 

EMI-free life feels peaceful and light.
 
 

Self-control today brings freedom tomorrow.
 
 
8. Health and Life Insurance Priority

Health emergency can break your finances.
 
 

Take a personal health insurance cover.
 
 

Group cover from employer is not always enough.
 
 

Also take a low-cost term life insurance.
 
 

Do not mix insurance with investments.
 
 

Term plan protects family. Premium is affordable.
 
 

Insurance is not optional. It’s your safety net.
 
 
9. Don’t Rely on Index Funds or Direct Mutual Funds

Some people suggest index funds or direct plans.
 
 

But these lack personalised support and active review.
 
 

Index funds don’t beat inflation in long term.
 
 

Direct funds don’t guide you in market changes.
 
 

Use actively managed mutual funds.
 
 

Invest through a Mutual Fund Distributor backed by a Certified Financial Planner.
 
 

Proper advice gives proper results.
 
 
10. Set a 3-Step Goal Plan

Step 1: Get control of monthly spending.
 
 

Step 2: Reduce EMIs or consolidate loans.
 
 

Step 3: Start small savings. Build emergency fund.
 
 

Once your cash flow improves, you can add SIPs.
 
 

Even Rs. 2,000/month SIP can build wealth slowly.
 
 

Long-term discipline matters more than short-term sacrifice.
 
 
11. Talk to a Certified Financial Planner

You don’t have to figure it all alone.
 
 

Certified Financial Planners can review your full profile.
 
 

They guide step-by-step based on your goals.
 
 

You get help with loan restructuring, budgeting and investing.
 
 

Regular plan reviews give better direction.
 
 

Guided support gives better results than guesswork.
 
 
Finally

Your situation is difficult but not unfixable. You are not alone. Many professionals earn well but have tight budgets. You are aware. That’s the key strength.

Now you need to make few lifestyle and financial changes. Nothing happens overnight. But over 6–12 months, you can turn things around.

Build better habits. Spend less than income. Don’t take more loans. Start even the smallest savings.

Once you’re stable, shift focus to long-term investments. Work with a Certified Financial Planner to guide you along the journey.

You’ll find peace, progress and purpose.

 
 

Best Regards,
 
K. Ramalingam, MBA, CFP
 
Chief Financial Planner,
 
www.holisticinvestment.in
 
https://www.youtube.com/@HolisticInvestment

Ans: Understanding Your Current Situation

You earn Rs.55?000 per month.

You save nothing currently.

You feel stuck in a cycle of spending.

This is common and fixable.

Recognising the problem is a strong first step.

Breaking Down Your Monthly Expenses

List all monthly expenses first.

Include rent, groceries, bills, transport.

Include any small expenses like tea or snacks.

Also include entertainment and subscriptions.

Add all EMIs or debt payments if any.

This gives clarity on where money is going.

Identifying Spending Leaks

Check for impulsive spends like eating out often.

See if high grocery bills can be optimised.

Identify subscriptions you don’t use.

Spot small daily spends that add up.

This lets you free up money easily.

Creating a Budget You Can Stick To

Allocate money for:

Needs: rent, food, bills

Wants: leisure, eating out

Savings: start small now

A 50?30?20 split works well:

50% for needs (~Rs.27?500)

30% for wants (~Rs.16?500)

20% for savings (~Rs.11?000)

Adjust percentages based on your situation.

Starting Your Savings Plan

First, build a small habit of saving.

Even Rs.1?000 monthly is a start.

Move this to a savings account or liquid fund.

This builds discipline and confidence.

Increase savings gradually each month.

Building an Emergency Fund

Aim to save at least six months of expenses.

With Rs.55?000 income, that is ~Rs.3?00?000.

Keep it in a liquid debt fund or savings account.

This fund protects against job loss or emergency.

Do not touch it for regular needs.

Paying Off Debt (If You Have Any)

Prioritise high?interest debts first.

Credit card and personal loan are most costly.

Pay more than minimum EMI if possible.

Keep home loan at normal pace for tax benefit.

Aim to clear all personal loan balance quickly.

Building a Goal?Focused Investment Strategy

Short?Term Goals (1–3 years)

Emergency fund is first priority.

Second is saving for vacation, gadgets, etc.

Keep this in low?risk debt funds or recurring deposit.

Medium?Term Goals (3–8 years)

Goals like marriage, higher education, etc.

Use actively managed balanced or hybrid funds.

You get better risk?return balance than index funds.

Long?Term Goals (10+ years)

Goals like retirement or child’s future.

Invest in actively managed equity mutual funds.

Blend of large?cap, mid?cap and flexi?cap is ideal.

This mix gives growth and some stability.

Why Actively Managed Funds Are Better for You

Index funds just follow the market.

They do not protect during market setbacks.

Active funds have managers who can shift strategy.

This helps reduce losses and boost gains.

In India, active funds often outperform indices.

Cost is slightly higher, but value is larger.

You benefit from disciplined planning by CFP.

Why Regular Plans through MFD + CFP Are Better Than Directs

You won’t get hand?holding in direct funds.

CFP helps you avoid panic during market drops.

Helpful when choosing between funds.

CFP ensures alignment with your goals.

Regular funds include a small distributor fee.

It gives value through guidance and monitoring.

That small cost is worth professional support.

Asset Allocation Tailored to Your Age and Income

Ideal allocation when income is Rs.55?000/month:

40–50% in equity funds

30–40% in debt or hybrid funds

10–20% in liquid funds/emergency

As your income grows, shift more to equity.

Adjust allocation with your financial goals in mind.

Step?By?Step Monthly Plan

Transfer Rs.1?000 into a savings account on salary day.

Add Rs.1?000 next month if comfortable.

After three months, start Rs.2?000 SIP in a debt fund.

Pay off any small personal loans aggressively.

Then start a Rs.3?000 monthly equity SIP.

Keep adding to both SIPs each year.

Stop unnecessary expenses as savings grow.

Reviewing and Rebalancing Periodically

Review your budget monthly.

Track where money leaks occur.

Adjust categories if needed.

Review investment portfolio twice a year.

Check returns, risks, and fund performance.

Rebalance if allocation drifts from target.

Monitoring Goal Progress

Track corpus for each goal regularly.

Use cost inflation estimates to gauge target.

If short, increase monthly SIPs.

If surplus, shift more to long?term goals.

Keep goals separated and measurable.

Building Financial Awareness

Read financial articles or watch videos by CFP.

Understand basics of equity, debt, and hybrid funds.

Learn to read fund factsheets and performance charts.

This builds confidence in managing money.

Protection: Health and Term Insurance

Buy health insurance with Rs.5–10 lakh cover.

This protects you and your family.

Term insurance is essential at your age.

Choose a cover 10–15x your annual income.

Avoid ULIP, money?back or endowment policies.

If you own them, surrender and reinvest.

Focus on pure commitments: Term + health.

Tax?Saving Steps You Can Take

Use PPF, ELSS or home loan interest for tax benefit.

Claim Rs.1.5 lakh under section 80C.

Also claim section 24 for home loan interest.

Plan equity fund redemptions smartly after gain.

Over Rs.1.25 lakh LTCG taxed at 12.5%.

STCG taxed at 20%.

Debt fund gains taxed as per your slab.

Plan fund withdrawal over years to save tax.

Behavioural Changes That Matter

Always “pay yourself first” before spending.

Avoid impulse spending urges.

Use cash?only for some expenses.

Cancel unused subscriptions.

Avoid EMI for small gadgets.

Save first, then spend consciously.

Enjoy a disciplined approach to money.

Increasing Income and Investments

Think of side?income options like freelancing.

Use annual bonuses to increase SIPs.

Don’t increase lifestyle with salary hike.

Funnel increments into investment and goals.

Family Involvement in Planning

Discuss budget with your family.

Keep them informed about savings plan.

This builds commitment and teamwork.

Encourage children to learn money basics early.

Final Insights

Your income is enough to generate savings.

You need discipline, direction and goals.

Start small but start right now.

Build savings habits first, then grow slowly.

Goal?wise SIPs keep your money purposeful.

Guided help from a CFP gives stability and insight.

Active funds will serve you well.

Avoid risky SCAMS like ULIP or index-only options.

With time, your savings will build slowly.

Over long term, you will see real results.

Keep reviewing, learning and adjusting.

A healthy financial future is waiting for you.

Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment