Money Saving Ideas – Does saving depends on the level of income ?


Money Saving ideas – Does saving depends on the level of income?

Many people keep blaming, saying that they are not able to save enough as their income level is not that high. Does the savings depend on the level of income? As part of our money saving ideas analysis, we felt this is not always true. During last weekend, I met two people and could get some interesting facts.

Whom I met during last weekend

I met two people during last weekend. Both are working in an IT company. Person-A was working at an executive level earning Rs 20,000 per month and Person-B at a manager level earning Rs 40,000 per month. The discussion came up about the cost of living and the savings that can be done in current situation. We all agreed about inflation, growing prices etc. Some of them were asking the money saving ideas.

What is so specific about the discussion?

Now the discussion came up about savings done month on month. The question was does saving depends on the level of income?

Person-B who was working as a Manager says, he is struggling to save 10% of his total income i.e. he is able to save Rs 4,000 per month.

Person-A, who was working as an executive level says he was able to save 45% of his total income i.e. he is able to save Rs 9, 000 per month.

We all friends were listening and found the topic was interesting. We asked them to provide more details so that we can help them to know whether Person-B was struggling to save money or whether Person-A was able to save, but his he compromising on the quality of the services. We all are clear that we need to reduce expenses and save money without compromising on the quality of services/products we buy.

We could get into next level of expenses details and tabulated on a piece of paper. It was looking like below table.

money saving ideas - does saving money depends on income

Now Person-B (Manager) approached me asking me ideas for saving money.  He was feeling shy that a junior level executive was able to save Rs 9,000 whereas he was not able to save even half of it.

I had a brief chat with Person-B and had come out with my observations. My friends were eagerly waiting to see what my analysis was and how this is going to help the manager to increase savings.

money saving ideas - does saving money depends on income

I started my conversation saying, savings would not depend on level of income, but they depend on what we intend to save. I continued….

1)   Overspending on Groceries/Kirana/food items: The manager was overspending on groceries/kirana items. They were only 2 adults and 2 kids; hence he agreed that they were overspending on this. Quickly I prepared “minimum requirement” list and “Others” list.

a.   Minimum requirements list was items which are required irrespective of the level of income.

b.  “Others” list was items where you can live without them. We could quickly check that Person-B was spending more than 60% of the groceries/food/kirana items amount in “Others” list. If he can bring down this to say 10% to 20%, he would be able to save Rs 7,000 approx.

2)   Bike and Car maintenance: Person-A has a bike, hence his vehicle maintenance was low. However Person-B has a car and  his maintenance was too high. We went to little more details and listed down where he was overspending on car maintenance

a.   Every day, after dinner, he takes his two kids in the car for drive for 30 minutes. Thought he does not like this, but he is doing as his kids enjoy this. He says once they start for drive, his kids sleep within 2-3 minutes. My question was what he is doing for next 27 minutes. Since he does not like the drive during that time, there is no question that he was enjoying those moments. He does not have any answer for this. I suggested he could save Rs 1,500 approx with this.

b.  He drove the car every day and even during weekend. He takes out his car even for shorter distances. I indicated not to use the car during weekend unless he is going out with his family and not to use the car for shorter distances. He could save money for Rs 1,000 approx.

c.   He indicated that he is going on long trip in his car every month. Though, I felt it was little luxurious way of living, but still I asked him to see if he can do once in two months. He was not able to compromise on this.

3)   Life insurance and medical insurance, I felt they have done as per their level of income. I have not suggested any savings here.

4)   Weekend dinner expenses: Person-A (executive) goes out for dinner with his family once in a month. Person-B (Manager) was going out almost every week end. I have suggested that can he manage with twice in a month wherein he could save Rs 2,000 in a month.

5)   Internet at home: Person-B (Manager) was overspending on this. He indicated that he has multiple connections at home for him as well as for his family. I suggested there are several good schemes for multiple internet connections which come with cheaper rates and he can reduce the money. Alternatively he can optimize and adjust with once connection. He could save Rs 900 with this. 

6)   Weekend shopping/food items: This was an interesting fact. Earlier I used to make such mistakes for long time. We all go for weekend shopping or purchasing food items. While we intend to purchase only the products which are required, we also purchase something “unplanned”. Person-B was also doing same mistake and he is spending more than Rs 2,000 in a month with such “unplanned” shopping. He agreed and now intends to save Rs 1,500.

By now everyone was eagerly looking at what would be savings once we implement these ideas for saving money. I quickly put them into a tabular form which was looking like below. The total savings moved from Rs 4,000 (approx) to Rs 18,000 (approx) per month.

money saving ideas - does saving money depends on income

Conclusion: The money saving ideas indicated above is only indicative and not complete. There can be various ways in reducing our expenses and saving money. Savings does not depend on income, but it depends on what we intend to save. I always tell my friends Expenses = Income minus savings and not Savings = Income minus expenses.

Readers, how are you planning and saving your money? Do you have any specific money saving ideas ? Please give your comments

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Money Saving Ideas

Suresh KP


  1. Hello Suresh,

    I am Sam and currently working in US, today I had a chance to read some of your articles on investments and financial planning.

    I am really impressed on reading your articles and I would like to have discussion with you on my financial plans, If you are okay please provide me your email and phone contact so that I can reach you for your valuable advice. 



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