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:
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Catch unnecessary expenses (like that random ₹1,200 I spent on food delivery every week)
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Avoid impulse purchases
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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:
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Rent: Moved into a shared flat. Saved ₹5,000/month
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Food: Switched from Swiggy/Zomato to home-cooked meals. Saved ₹3,000+/month
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Transport: Took local trains, buses, and shared autos. Ola/Uber became a luxury.
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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:
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Freelance content writing (₹500/article)
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Teaching basic Excel/English online
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Selling unused stuff on OLX and Quikr
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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:
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High-interest digital savings account (like AU Small Finance, SBI Max)
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SIP (Systematic Investment Plan) — I started with just ₹500/month
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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
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Followed a no-spend weekend rule
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Bought clothes only during sales
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Learned to say “no” to impulse outings and peer pressure
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Watched YouTube instead of going to the movies
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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
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Discipline > Income: Even a small salary can build wealth if you manage it well.
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Tracking changes everything: Awareness = control.
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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!
Would you like a free Budget Tracker Template? Let me know, and I’ll send it your way!