Saving ₹10,000 every month on a ₹25,000 salary may sound difficult, but it is absolutely possible with discipline, planning, and small lifestyle changes. This blog explains step-by-step how an average Indian salaried person can do it, along with a real-life example.
The 40-40-20 Rule (Modified for ₹25,000 Salary)
To save ₹10,000, you need to control your expenses within ₹15,000.
Savings: ₹10,000
Monthly expenses: ₹15,000
Salary: ₹25,000
The key rule: Save first, spend later.
Real-Life Example: Rahul, a Private Job Employee
Name: Rahul Sharma
Age: 27
City: Guwahati
Salary: ₹25,000 per month
Job: Office executive
Living: Rented room, shared accommodation
Rahul decided to save money for an emergency fund and future marriage expenses.
Step-by-Step Monthly Budget (₹25,000 Salary)
- Save First – ₹10,000 (Non-Negotiable)
The day Rahul receives his salary:
₹7,000 → Recurring Deposit (RD)
₹3,000 → Mutual Fund SIP / Savings account
Why first?
If you wait till month-end, savings never happen.
- Fixed Monthly Expenses – ₹9,000
Expense Amount
Rent (shared room) ₹4,500
Electricity & water ₹700
Mobile + Internet ₹400
Transport (bus/bike) ₹1,400
Groceries ₹2,000
Total: ₹9,000
- Variable Expenses – ₹6,000
Expense Amount
Eating outside ₹1,500
Tea, snacks ₹1,000
Entertainment ₹1,000
Emergency buffer ₹1,500
Personal needs ₹1,000
Total: ₹6,000
✅ Final Breakdown
Salary: ₹25,000
Savings: ₹10,000
Expenses: ₹15,000
Balance: ₹0 (Perfect budget)
Practical Tips That Made This Possible
- Shared Accommodation
Rent eats salary fast. Sharing a room saves ₹3,000–₹6,000 easily.
- Avoid Daily Online Food Orders
₹200/day × 30 days = ₹6,000
Home food + occasional eating out saved Rahul ₹4,000 monthly.
- Track Every Rupee
Rahul uses:
Notes app
Free expense tracker apps
Awareness reduces unnecessary spending.
- No Credit Card EMI Trap
He avoided:
Buy now pay later
Zero-cost EMI gadgets
These silently destroy savings.
- Weekend Control Rule
Entertainment limited to ₹250 per weekend.
Where Should You Save ₹10,000?
Safe & beginner-friendly options:
₹7,000 – Recurring Deposit (RD)
₹3,000 – Index Mutual Fund SIP
This builds discipline + long-term wealth.
What Happens After 1 Year?
Monthly savings: ₹10,000
1 year savings: ₹1,20,000
With RD + SIP returns → even more
For a ₹25,000 salary person, this is a huge financial achievement.
Common Mistakes to Avoid
Waiting to save at month-end
Lifestyle inflation after small salary hikes
Impulse online shopping
Ignoring emergency funds
Final Words
Saving ₹10,000 on a ₹25,000 salary is not about earning more —
it’s about spending smarter.
If Rahul can do it, you can too.
Start small, stay consistent, and your future self will thank you.
