For many people, their income runs out by the end of the month, leaving their savings at zero. Why does this happen? Most people are unaware of simple strategies for saving money.
In today’s world, protecting your money and growing it through the right investments has become essential for everyone. If earning money is a skill, preserving it is an art. By following a few small habits and rules regularly, you can save the money you earn and improve your financial condition.
So, what should you do?
1. Save 10 to 20 per cent of your income compulsorily:
Many people tend to spend first and save only what remains. This often leads to unnecessary expenses, and the money disappears before they realise it. If you develop the habit of setting aside 10 to 20 per cent of your income on the very day you receive your salary or earnings, you will not regret it in the future.
You can deposit this amount in a fixed deposit or a savings account. If done regularly, it can grow into a significant sum within five years. This is the most basic and effective method of saving.
2. Make a monthly budget and track expenses
You should clearly plan how much you earn and how much you spend each month. If you do not use mobile apps, wallets, or money managers, you can simply record your daily expenses in a notebook.
This habit helps reduce unnecessary spending, such as eating out daily, online shopping, and buying non-essential items. Budgeting controls unplanned expenses and increases savings. In Nepal, an average family spends about 40 per cent of its income on food, which can be reduced by cooking at home. This habit can help save NPR 10,000 to 20,000 per month.
3. Build an emergency fund
Set aside an amount equivalent to at least six to twelve months of expenses in an easily accessible place. This fund reduces stress in case of job loss, illness, or sudden major expenses. Since healthcare costs are high in Nepal, an emergency fund has become essential. Without it, the risk of falling into debt increases.
4. Avoid unnecessary loans
Using credit cards or personal loans to buy expensive phones, laptops, or vehicles that are not truly necessary drains your savings. It is better to take loans only for essential needs, such as housing or education and to plan for early repayment. In Nepal, bank interest rates range from 10 to 15 per cent, and borrowing from other sources can cost even more, deepening the debt trap. A debt-free life brings mental peace and makes it easier to focus on saving.
5. Start saving regularly with small amounts
You can begin saving even with Rs 5,000 or 10,000 per month. Over time, even small amounts benefit from interest. In Nepal, you can start mutual fund investments through SIP with as little as Rs 1,000. Consistency is the key to success.
Many people ignore small savings, thinking they make little difference. But starting small builds habits and reduces pressure. Over ten years, this habit can turn into savings worth hundreds of thousands or even millions.
6. Adopt smart ways to reduce expenses
Save on electricity and water, choose affordable internet packages, cook at home, and buy second-hand items. If you are paying regular fees to unnecessary organisations or memberships, consider withdrawing from them. Such small changes can save Rs 5,000 to 15,000 per month.
You can reduce daily expenses by up to 40 per cent. Develop the habit of checking discounts during online shopping and comparing prices in the market. This approach increases savings without lowering your standard of living.
7. Improve your financial knowledge
Reading financial books, watching educational content on YouTube, and understanding shares, SIPs, and fixed deposits in Nepal can reduce the risk of losing money. Many people suffer losses due to a lack of knowledge. Spending one to two hours a week learning about finance boosts confidence in investment decisions. This knowledge will become your greatest asset.
8. Make financial plans together with your family
You can help your spouse and children understand the importance of budgeting, saving, and setting goals. When the whole family supports the plan, controlling expenses becomes easier. In many Nepali families, plans fail when only one person manages finances. Saving and setting goals together leads to better results and faster success.
9. Reinvest the profits you earn
Reinvesting the interest or profits from investments helps your money grow faster. For example, with a 10 per cent return, your money can double in about seven years. In Nepal, this works effectively when you understand fixed deposits, SIPs, and shares.
With patience and consistency, repeating this process regularly can make you financially strong in the future. This is the final and most powerful tip for saving money.
