How I Saved Over ₹2 Lakhs in Just 1 Year — Even on a Low Income

 When I tell people I saved over ₹2,00,000 in a year, the first reaction I get is:

“You must be earning a lot!”
Spoiler alert: I wasn’t.

In fact, my monthly income barely crossed ₹20,000 when I started this journey. I didn’t have a fancy job or a side business making lakhs. What I did have was a simple plan, a shift in mindset, and a serious commitment to change my financial life. And here’s exactly how I did it.

 Step 1: Mindset Shift — Pay Yourself First

Before I started saving, my entire approach to money was reactive. I’d get paid, spend on things I “needed” (and things I definitely didn’t), and save whatever was left. Usually, that meant nothing.

Then I came across a simple rule:

Save before you spend.

So I flipped the script. Every time I got paid, I’d immediately move 20% of my income into a separate savings account. Out of sight, out of mind — and it worked.

Step 2: Tracking Every Rupee

I created a simple Google Sheet with categories: Rent, Food, Transport, Subscriptions, Shopping, Emergency. Every single day, I logged my spending. At first, it was a pain. But soon, it became addictive — like a daily money workout.

This one habit helped me:

• Catch unnecessary expenses (like that random ₹1,200 I spent on food delivery every week)

• Avoid impulse purchases

• Stick to a strict monthly budget

I used free apps like Walnut and Money Manager when I was too lazy to do it manually.

 Step 3: Cutting Down Big Expenses

Here are the biggest cuts I made — and they added up fast:

• Rent: Moved into a shared flat. Saved ₹5,000/month

• Food: Switched from Swiggy/Zomato to home-cooked meals. Saved ₹3,000+/month

• Transport: Took local trains, buses, and shared autos. Ola/Uber became a luxury.

• Subscriptions: Paused Netflix, Spotify, etc. Used free trials and shared accounts.

Just these changes saved me around ₹10,000/month.

 Step 4: Earning a Little Extra (Side Hustles)

While I didn’t have a second job, I found simple ways to earn extra:

• Freelance content writing (₹500/article)

• Teaching basic Excel/English online

• Selling unused stuff on OLX and Quikr

• Joined affiliate programs (₹100–₹500 passive income per month)

Some months I earned an extra ₹2,000–₹4,000. Nothing huge, but it all went straight into savings.

 Step 5: Where I Put My Money

I didn’t just stash cash in my bank account. I made it work:

• High-interest digital savings account (like AU Small Finance, SBI Max)

• SIP (Systematic Investment Plan) — I started with just ₹500/month

• Emergency Fund — built it up to ₹50,000 over time

By the end of the year, my money had grown on its own, thanks to compound interest.

 Step 6: Lifestyle Tweaks That Changed Everything

• Followed a no-spend weekend rule

• Bought clothes only during sales

• Learned to say “no” to impulse outings and peer pressure

• Watched YouTube instead of going to the movies

• Focused on minimalism — less clutter, more clarity

 Final Numbers — What I Saved

Here’s the breakdown of my yearly savings:

Category	Amount Saved (₹)
Rent Adjustments	60,000
Food & Delivery Cuts	36,000
Transport Savings	24,000
Subscriptions & Extras	12,000
Side Hustle Income	36,000
Investments Growth	10,000+
Total	₹1,78,000+

Combined with smart spending and investment growth, I crossed ₹2,00,000 by the year’s end.

 What I Learned

• Discipline > Income: Even a small salary can build wealth if you manage it well.

• Tracking changes everything: Awareness = control.

• Start small, stay consistent: ₹500 here, ₹1,000 there — it adds up.

 You Can Do It Too

This isn’t a rags-to-riches story. It’s a real story. And if I can save lakhs on a tight budget, so can you.

Want to start your own savings journey?
👇 Drop a comment with your monthly savings goal, and let’s build wealth together!

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Would you like a free Budget Tracker Template? Let me know, and I’ll send it your way!