If you’re living in India and wondering how much of your monthly income you should save , you’re not alone. Whether you’re earning ₹25,000 or ₹2,50,000 a month, saving money is essential—but the exact amount varies depending on your income level, expenses, goals, and lifestyle.
Let us see how much you should ideally save monthly in India, to make a good living in 2025
With rising inflation, higher education cost , hospital cost, and volatile job market , building a financial cushion is no longer a luxury—it’s a necessity.
India’s inflation rate hovered around 5–6% in 2024, and prices of daily essentials have climbed sharply in metros like Mumbai, Delhi, Bengaluru, and Chennai. Saving even 10–20% of your income can help buffer against emergencies, fund long-term goals, and create financial freedom.
A good rule of thumb is the 50/30/20 rule, which recommends:
50% of your income for needs (rent, food, transport, bills)
30% for wants (eating out, subscriptions, shopping)
20% for savings (investments, emergency fund, goals)
However, this rule isn’t one-size-fits-all. In India, because cost of living varies widely between cities and rural areas, your ideal savings rate could range from 10% to even 40%.
Here’s a suggested savings guide depending on your monthly take-home income:
| Monthly Net Income | Recommended Savings | Savings Rate |
|---|---|---|
| ₹25,000 | ₹2,500–₹3,000 | 10–12% |
| ₹50,000 | ₹7,500–₹10,000 | 15–20% |
| ₹1,00,000 | ₹20,000–₹30,000 | 20–30% |
| ₹2,00,000+ | ₹50,000+ | 25–40% |
The more you earn, the higher your savings rate should be. Avoid “lifestyle inflation” — where expenses grow just because income does.
Don’t just dump all your savings into a bank account. Instead, divide them into short-term, medium-term, and long-term goals:
Save 3–6 months of your expenses in a liquid fund or high-interest savings account
Ideal for job loss, medical emergencies, urgent repairs
Use Recurring Deposits (RDs) or Debt Mutual Funds
Save for planned goals like travel, marriage, or down payment for a car
Use SIP in Mutual Funds, PPF, NPS, or even equity
Ideal for retirement, house purchase, children’s education
| Category | Amount (₹) |
|---|---|
| Rent | 12,000 |
| Food & Groceries | 6,000 |
| Utilities & Internet | 2,000 |
| Travel (Commute) | 2,500 |
| Personal Expenses | 5,000 |
| Discretionary (Dining/Shopping) | 5,000 |
| Insurance (Term + Health) | 2,000 |
| Savings | 15,500 (31%) |
This person saves over 30% of income by optimizing discretionary expenses.
ET Money
Learn how to budget smartly in India .
Fi Money, Jupiter, Airtel Payments Bank
(Earn 5–7% on your idle money)
Groww, Zerodha
Scripbox (automated SIP planners)
That’s okay. Start small. Even saving ₹500–₹1,000/month consistently matters. Your savings rate should grow as your income increases. The important thing is building the habit.
Use this formula:
Monthly Savings = Net Salary × Target Savings %
Example: ₹60,000 × 25% = ₹15,000/month savings goal
Whether you’re a college grad earning ₹25,000 or a mid-career professional making ₹2 lakhs, saving money in India is more critical than ever in 2025. Start with a percentage that feels achievable, automate your savings, and grow that number over time.
Remember: It’s not about how much you earn—it’s about how much you save.
