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Reviewed by Ibnujala
Being a student and living under the protection of your parents is all fun up to a certain age. However, over time, asking money from parents for your hobbies, interests, and day-to-day activities might feel uneasy and burdensome.
So, how can one stay out of a position like that in life? We are here to help you. In this article, we will discuss how to be financially independent as a student.
Whether you are a student or a grown-up individual, financial freedom is essential, as it provides freedom of choice and the power to decide what to do and what not to do in life. Interestingly, the Gen Z population is showing more interest towards financial literacy, budgeting, and early investing.
So, let us get into the depths and learn how to be financially stable as a student.
Financial freedom for students means the ability to manage the daily expenses, including studies, bills, food, accommodation, transportation, student loans, and more, independently. However, along with meeting bills, it is also about managing expenses, saving money, and at times investing for future needs.
Is achieving this financial independence easy for students? The answer might be no. With limited income opportunities, academic pressure, and increasing living expenses, students might struggle to find a balance in the beginning.
Despite the challenges, achieving financial independence as early as possible has a long-term benefit to offer. So, by practicing budgeting methods like the 50/30/20 rule and other strategies, slowly but gradually, students can lead a life without financially depending on their parents.
Not only does this make them more free, but it also teaches life skills like budgeting, avoiding unnecessary expenses, handling real-life responsibilities, and more.
As we have already discussed, becoming financially independent from your parents can feel like a Herculean task in the beginning. However, with small steps and constant efforts, you can make a big leap in the long run.
In this section, we will discuss it in depth. Let’s start by broadening our discussion to include the potential steps you can adopt to become a financially independent student.
The first and foremost step in becoming a financially stable individual is building smart money habits. You can reach your financial objectives more quickly if you develop better money management practices early in life.
Here are some basic things you can focus on to develop better financial management skills.
Proper budgeting has a prime role in making people financially aware and independent. Utilising money and categorising it into needs and wants are important life skills every student should develop, even if they haven’t started earning.
There are various budgeting techniques, like the 50/30/20 rule, that can aid in better financial management. According to this rule, 50% of the earnings or money should be allocated to the needs or essentials for day-to-day existence.
From the remaining 50%, 30% should be allocated for wants such as entertainment, shopping, hobbies, and more, while the last 20% should be contributed to savings.
Although the 50/30/20 rule is one of the easiest to follow budgeting plans, students might face difficulty in following it due to limited income. In such cases, you can adjust it according to your needs and change the pattern into 60/30/10, 70/20/10, or likewise.
However, always remember to make realistic budget plans and stick to them. You can use budgeting calculators to plan and visualise weekly and monthly expenses and develop effective budgets.
Along with setting a realistic budget plan, it is important to analyse where and how you spend your money. Take note of all expenses and savings every week and evaluate daily spending, as it helps to identify unnecessary expenses and plan spending accordingly.
You can track your expenses by taking notes, jotting them in your phone, or using expense tracking apps like YNAB, PocketGuard, Goodbudget, and a spending and budgeting tool.
Finding a source of income, no matter how small or big, is important to become a financially independent student. There are various income sources that are suitable for students.
Let us have a quick look at some popular income sources beneficial for students.
Students taking up part-time jobs is a common practice seen worldwide. From simple positions as administrative assistants to occupations in cafes and libraries. These jobs are mostly flexible, helping students to balance both studies and work.
Even if the earnings from part-time work cannot contribute much to savings, they will definitely help students meet their basic needs and daily expenses.
Paid internships are one of the best ways to earn while continuing your studies. You can find short-term and long-term internships that align with your educational qualifications.
Internships have multiple benefits. Along with offering a source of income, these internships also help gain professional experience for the future.
However, not all internships are paid. There are unpaid internships as well. Some unpaid internships might offer stipends to cover travel and food expenses. But in some countries, unpaid internships may even be restricted or regulated by labour laws, so always check your local rules.
Students can find various on-campus jobs like that as a research assistant, teaching assistant, helpdesk assistant in the Students’ Union, and more.
As these jobs are on the campuses, students will be able to easily manage their classes and schedules with the work if they choose on-campus jobs.
Plenty of freelancing and online jobs are available today. Taking up these jobs will be helpful for students, as they can work depending on their availability and convenience.
With a wide range of jobs like writing, tutoring, designing, and more, you can convert both your passion as well as profession into freelance jobs.
However, not all freelance or online jobs can be done at your convenience. Some of them might have time constraints. So, select those jobs that are convenient and manageable according to your classes.
You can find these jobs from career and placement cells and platforms like LinkedIn, Indeed, Fiverr, Upwork and others. But always stay updated with continuous CV checks, attend mock interviews, and seek career advice from experts and accredited life coaches, as it will help improve your job hunt and overall living.
Apart from jobs and internships, students can make income from passive sources like blogging, YouTube, print-on-demand designs, and more. Similarly, small businesses like handmade crafts and thrift stores can also be a good side hustle for students.
Reminder: Students can better understand where their money is going and increase their savings by keeping a basic cash flow system and monitoring their income and expenses.
Student-specific scholarships are another major source of income during student life. You can find various scholarships to uplift certain communities, offer financial resources based on merit, and more. These scholarships help reduce student debts, support economic needs, and improve student performance.
Earning alone will not help you become financially independent. Along with it, you should also cut down on unnecessary expenses and start saving money for your future needs and emergencies.
Here are some methods and facilities that help students cut down their living costs without lowering their quality of life.
Student discounts are one of the most beneficial things that help reduce their living costs. Many services, including essentials like transportation and entertainment, such as Spotify, Amazon, Adobe, and more, often come with student discounts of 10% to 50%.
Students can cut short their expenses by reducing spending on food.Consider cooking at home rather than ordering takeaway. This helps save a large amount of expense. Moreover, practice meal prepping on weekends, as it helps make things easier, even on busy days.
Instead of living alone, sharing housing space with roommates will help reduce accommodation costs, as you will be able to split expenses.
Another method that helps reduce housing costs is opting for on-campus accommodation. Not only is it more affordable compared to other accommodation options, but it also cuts short transportation costs.
Minor changes in lifestyles and shopping will also help students cut their expenses. Instead of recharging various entertainment streams, look for offers that are included with your phone plan. Also, look for student bundles or family plans that reduce costs.
Another important thing is to reduce impulsive shopping. Always ensure that you really need the thing before buying it. Establish a 24-hour waiting period before buying something. This will help you identify whether it is a need or emotional buying.
Starting savings, even in small amounts, will be the foundation for future savings. So, students can also have savings plans like:
Many banks offer special student-friendly accounts, often with zero balance or with reduced fees, though this varies by institution.
However, before starting a bank account, ensure that you check all the terms and conditions. Additionally, even though some banks may offer special student-friendly benefits such as zero-balance accounts or fee waivers, this is not guaranteed by all banks and financial institutions.
Develop an automated savings scheme. That means setting up a system where a percentage of your earnings, student scholarships, or stipends is automatically transferred to a savings system.
No matter how small your savings are, follow this practice, as it helps develop discipline and saving habits in students.
A sudden and unexpected expense like a medical emergency, laptop repair, or unplanned travel can break the financial balance of students. So, save up for such emergencies by maintaining an emergency fund.
Initially, you might only be able to save up small amounts. However, save more when possible. Ensure that you have at least one month’s living costs saved up in your emergency fund.
Debts are a reality of student life. It might be difficult for most students to manage these debts alone. However, proper planning and responsible decision-making will help students manage their debts wisely.
You might need student loans for your higher education. However, borrow only what you need. As loan repayments can be a hectic task, ensure that you do not take maximum loans if not necessary.
Additionally, look into your options for repayment and see if you may start with interest-only payments. Students can explore loan consolidation, income-based repayment plans, or use simulators like Federal Student Aid’s loan calculator by the US Department of Education to plan repayments effectively
Students can apply for credit cards with modest limitations from some financial organisations. You can use these resources to raise your credit score. To prevent interest, make sure you can pay back the loan on time.
Keep in mind that utilising credit cards improperly can result in rapid debt traps. So, use them only if you are confident about timely repayments. Moreover, the laws regarding the credit card issuing for students might differ in different countries.
So, analyse them well in advance, as some countries offer credit cards for students only if they have an income source or a co-signer.
Pay off bills and utility fees like water, electricity, WiFi, and others without fail. Late payments can lead to high interest.
You can consider setting reminders to pay off bills on time and setting up automatic payment options to manage.
Along with handling debts wisely, it is also important to stay away from debt traps. You might come across payday loans and fast lending applications that may provide loans with less hassle. However, they come with higher interest rates.
Although these loans might be tempting, ensure that you do not fall for them.
Students usually consider investments as a grown-up man’s thing. However, by taking advantage of compound interest, early investing can aid in achieving financial independence. But remember, proper financial knowledge and guidance are required to start an investment.
Some popular forms of investments, like the stock market, crypto, and forex trading, might seem to offer huge profits within a short time. However, do not invest to chase profits. Instead, learn about the basics of investing from expert financial advisors.
Crypto and forex are high-risk investments. So, as beginners, choosing low-risk investment plans like mutual funds, index funds, and SIPs will be better for students.
Moreover, the availability and legality of crypto and forex trading vary greatly from region to region, especially in the case of students. So, researching the legalities of your investments before making a final decision is important.
Alongside, students should also consider having basic insurance, like health insurance. These insurances are important, as they help secure our savings and financial stability in times of emergencies. So, even if you encounter a medical emergency in the future, you can take care of it without breaking your savings.
You can consider taking certification courses, attending webinars, and enrolling in online courses offered by platforms like FinQuo Versity. This will help you understand the market and make informed decisions, reducing potential losses.
Balancing studies and financial responsibilities can be challenging. However, with the right approach and proper planning, you can succeed in both these areas.
Money is important in our lives. However, more than just making enough money to meet daily expenses, becoming financially independent from your parents early in life offers students several other benefits. Some of them are:
Learning how to be financially independent as a student is far more than just learning how to meet daily expenses. As we have already discussed in this blog, becoming financially independent is also about learning to meet expenses, saving money for future needs, cutting short unnecessary expenses, and understanding investing.
With part-time jobs, internships, passive income, and on-campus work, students can reduce their dependence on parents and eventually gain freedom of choice. However, along with developing financial freedom, it is important to prioritise education as well as physical and mental well-being.
So, with proper planning, guidance from financial experts and life coaches, and various trial-and-error methods, students can experiment with different methods that help them become financially independent early in their student life.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
Reviewed by Ibnujala
How important is money in an individual’s life? You must have heard people say that money can’t buy happiness or that money isn’t everything. If that’s how it is, why are almost all of our day-to-day activities in one way or another connected to money?
Zig Ziglar, a famous American author, once said, “Money isn’t everything, but it ranks right up there with oxygen.” Whether it’s the meals we eat, the clothes we wear, or the life and work choices we make, money influences nearly every aspect of our lives in subtle but impactful ways.
So, why is money important in life? Let us have a detailed discussion on it. Moreover, this blog will also guide you through the true value of money and how to use and save it. We will also discuss the emotional side of money and how it affects daily lives. So, let’s get into the depths of money.
Beyond materialism, money has an essence and value. Although material possessions are unavoidable, money offers a lot more value, like financial independence, peace of mind, the pursuit of dreams, and quality of life. Let us explore them in this section.
Rather than a goal, money needs to be a tool that guides you through your day-to-day activities. As money has the power to influence the mental peace and well-being of individuals, it’s important that you know how to handle it properly.
Instead of making money and using it to satisfy greed, effective utilisation and saving of money offer more financial freedom and mental peace. With proper savings to meet unexpected expenses and emergencies comes financial security, offering an improved quality of life.
“Money is better than poverty, if only for financial reasons.” – Woody Allen, American filmmaker and actor.
As mentioned earlier, money plays a vital role in meeting our basic needs. Whether it be food, shelter, healthcare access, or basic education, money is important in all these cases. Without sufficient money, even the most basic needs feel like a burden. So, money ensures the basic needs of individuals.
The same is the case with emergencies. Life being so unpredictable, people can encounter emergencies like health issues, job loss, or a family emergency, which can put them in a crisis. However, having money can significantly ease the burden of such situations. So, money not only buys things but also offers emotional stability and peace.
In the previous section, we talked about the basic needs that money fulfils. But is life only about basic needs? Money is not only for basic needs and survival, but it is also for growth and personal development.
Once the basic needs are met, you can use your money in various investments like equity funds, FDs, or other deposits. It can also be used to sign up for a course, get assistance from a coach, buy books, travel, or go for therapy. These are investments that help improve productivity, enhance happiness, and support long-term well-being.
As Henry David Thoreau, a famous American essayist, poet, and philosopher, said, “Wealth is the ability to fully experience life.” That couldn’t be more accurate, right? Although we talk about financial freedom, money also offers more. With sufficient savings and wealth, you will have the power to decide how to live your life.
You can take a break from your career, spend more time with family, go on a trip, or relocate to a new place without panicking over your next payday. Moreover, you will gain the ability to support friends and family with reduced financial stress. So, isn’t it one of the greatest positives of money to gain control over time and life?
Money helps you engage in philanthropic activities and donate to charitable and good causes. These donations help support communities and make meaningful changes in society. So, with these activities, money transcends far beyond materialism.
Money serves as the driving force that fuels our chase for dreams and passions. Although it’s often said that money is not everything, it does help gain access to resources that help you secure your dream job, take a trip to your favourite destination, or begin a business of your choice.
However, even though money opens doors to your dreams, you also need to seize the right opportunity and have sheer determination to convert those dreams into reality.
Financial stability is very essential, isn’t it? Is it just about keeping your bills and payments? No, with financial stability, you experience changes in how you perceive life, shifting from survival to growth. Let’s have a detailed discussion on it.
Once you start receiving a consistent income or your finances are more stable, you will be able to make stress-free decisions, whether they be related to your career, lifestyle, investments, or entertainment.
With a stable financial status, you will be able to focus on your long-term investments and savings rather than worrying about the immediate expenses and needs.
If you are financially stable, you will be open to more opportunities. Apart from living for your needs, you will be able to take calculated risks to begin a business or convert your passion into your profession.
However, to gain this level of financial stability, you should be aware of financial aspects. So, improving your financial knowledge with expert assistance is essential. You can seek help from platforms like FinQuo Versity to improve your financial knowledge, as they offer educational resources, financial courses, and other sources; they provide help with all aspects of finance, including budgeting, saving, and investing.
As we have discussed so far, money has various practical benefits, such as better opportunities, security, and personal growth. However, it also has an emotional side. Money largely affects the emotional aspect of individuals, for better or for worse.
While financial stability offers a sense of confidence and opportunities to invest in oneself through personal development, some people consider it a symbol of self-esteem. Although this might be good at times. It can also lead to anxiety, shame, and a feeling of failure when encountering a financial struggle.
While money opens doors to opportunity, unequal access to financial resources still creates barriers to education, career growth, and upward mobility, contributing to broader inequality of opportunity.
Furthermore, money can also be a reason for disputes and disparities in a family, especially when the concepts of saving, spending, and investing are different among partners. So, it is not only about learning how to earn, spend, save, and invest money. It is also about learning how to deal with the emotional aspect of it.
We have already discussed the importance of money in our day-to-day lives. So, it is clear that money does have a role in the happy life of an individual. However, is there a limit to the money we need?
Although money brings happiness, it does not mean that money is the presiding factor in making someone’s life happy. A sufficient amount of wealth that helps to meet the needs and offer financial stability is important for every individual. It is only then that people will be able to seize opportunities and lead their desired life without worrying about daily expenses and needs.
However, even though more wealth offers more luxurious lifestyle choices, it does not guarantee a happy life for everyone.
A survey was conducted by Ipsos back in 2019 on whether more money brings happiness to people. While 45% of participants shared that more money gives them the greatest happiness, 13% of respondents were against this statement. So, this survey reveals that more money is sometimes too much money, at least for some of us.
Therefore, more than an abundance of wealth, humanitarian values, healthy living conditions, mental well-being, a loving family, an independent life, and more are valued by many.
So far, we have discussed various aspects and the importance of money in life. Given everything we’ve explored, would you say that money is the most important thing in life? Yes, money does have various benefits. It supports personal growth, offers freedom and choices, helps to pursue dreams and ambitions, and aids philanthropic activities.
However, to enjoy these benefits, it is important to have an understanding of one’s income, plan expenses accordingly, maintain proper budgeting plans, and avoid unnecessary debts. Is that all? No. Along with proper money management, people should also be able to deal with the emotional aspects of money to better enjoy its benefits.
The famous Irish author and poet, Oscar Wilde, once quipped, “When I was young, I thought that money was the most important thing in life; now that I am old, I know that it is.” So, remember, the role of money in our lives is huge, but the ultimate aim is to understand the true essence of money and use it as a tool that helps improve freedom, quality of living, and mental peace.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
Reviewed by Ibnujala
Have you ever thought of starting a business of your own? Who doesn’t? Most of us have dreamt of becoming entrepreneurs at least once in our lives, especially women. You might have felt that you have an incredible business idea, but are confused about where to begin.
You are not alone in it. Most people, especially women, forbid themselves from starting their dream business only because of the chaos and confusion of the initial days. Let us tackle it now.
You do not always need degrees, except for specific businesses related to law, finance, or tech, huge investments, or well-established office space, to begin your business journey. Then, how to become a businesswoman? It is about seizing the right opportunity, learning from your mistakes, and staying consistent in your work.
In this blog, we will walk you through the steps involved in beginning a business and the government policies and schemes that benefit women entrepreneurs in India. We will also discuss some popular businesswomen as well as some business ideas women can consider.
As Michelle Obama wisely stated, “Success is only meaningful and enjoyable if it feels like your own.” With that in mind, let’s explore business ideas that not only generate income but also leave a meaningful mark on society.
Achieving success as a businesswoman is a challenging journey. It’s a long and persistent journey that requires ambition, passion, strategy, consistency, and resilience. Whether you are starting from scratch or taking up a corporate business, it is important that you have clarity in your plans, a well-developed strategy, and bold decision-making skills.
If you’re just starting out in this field, it’s natural to feel overwhelmed with questions and uncertainty. But you need not worry, as this section will offer a step-by-step guide that helps you be a smart businesswoman. Remember, no matter what your educational background is, if you have the itch and taste for entrepreneurship, proper guidance and planning can help you excel.
So, let’s get into those details.
Doing things that you love helps you excel and enjoy what you do. So, passion has a crucial role in your business success. In a highly competitive world, you need to be passionate to reach the top. Therefore, the first step in building a business is finding your passion.
However, finding your passion might not be as simple as it seems. While some have a clarity of what they like and what they want to do, others might lack this clarity. But let us help you identify them.
Improving your financial knowledge is essential before starting a business. With the right knowledge about budgeting, saving, and investing, you can tackle the potential financial challenges you might encounter in the future.
However, not many people around us are financially educated. So, seeking help from platforms like FinQuo Versity will be beneficial. They offer various courses, educational resources, and other materials that improve financial knowledge and literacy.
Your skills and expertise are the key factors that help you be a strong businesswoman. Before starting your business, make sure that you have polished your skills to meet the requirements of your business. Be confident about your knowledge and expertise.
Explore the various courses, certification programmes, webinars, and other resources that help you upskill yourself. Think of the possible ways that help you mould your skills through practical scenarios and real-life situations.
Apart from the subject knowledge, let’s have a quick look at the important skills you need to thrive in the business world.
After identifying your passion, you have to finalise a business idea that suits your interest and passion. Conduct a detailed analysis of the market trends, targeted audience, and audience acceptance before finalising your business idea.
Additionally, consider whether your product or service taps into a passion or provides a solution to a particular issue. Furthermore, consider the following points:
On the other hand, if the product has a growing market, you can earn potential benefits over time. So, before choosing your business idea, analyse these factors.
Remember, a strong business plan must feature a Unique Selling Proposition (USP) to make your business stand out from the rest. It has a major role in influencing your target audience. So, ensure that you select your USP efficiently.
Once you have settled on your business idea, the following step is to develop a well-structured and impactful business plan. This helps to navigate the potential challenges and complexities in your business journey.
Take a look at a small guide on developing a solid business plan.
The next step is to fund your business. Strong funding is essential to begin a business from scratch. As mentioned earlier, prior financial management helps you identify your funding needs. If you’re planning a scalable startup with long-term growth potential, you can also consider approaching Venture Capitalists (VCs) who fund early-stage, high-growth companies.
Here are some common funding methods you can opt for.
Registering your business is also important. However, not all businesses need an MCA registration. Private Limited Companies and LLPs must be registered with the MCA before launching. However, sole proprietorships and partnerships may not require MCA registration. They can start with minimal registration, like UDYAM, GST, etc.
However, ensure that you have all the necessary documents before registering. Do not forget to register for GST and other tax implications, as they may cause complications in the future.
Below are the things to consider while registering your business.
Scaling your business is important. However, instead of starting big, it is always advised to begin small with a Minimum Viable Product (MVP), with the help of seed funding, and then scale the business to greater heights.
Begin at a smaller scale and analyse the market trends and customer reactions. Later, establish a proper business plan and growth strategy, and then scale your business to reduce risks and losses.
Marketing or promoting your business is very crucial, as it attracts more customers towards it. So, you have to prepare a proper marketing strategy that includes trending ideas, with the necessary tools, campaigns, social branding and online platforms.
Consider the following marketing strategies to expand your business’s reach to a wider audience:
Similar to building and establishing your business, it is also important to maintain a proper work-life balance. You have to make sure that you set rules and prioritise both your personal and professional life equally. The points below might help you with it.
The Indian government offers various programmes and grants that help increase startup opportunities among women, helping them become businesswomen who lead others. Let’s have a quick look at them:
Stand-up India scheme is an Indian government initiative that offers loans and assistance for women, Scheduled Castes (SC), and Scheduled Tribes (ST) to start new businesses. According to this scheme, the eligible people can gain loans ranging from 10 lakh rupees to 1 crore rupees.
This scheme is developed mainly for greenfield enterprises. Furthermore, according to the official website, borrowers need to provide at least 10% of the project cost to be eligible for this scheme.
Pradhan Mantri MUDRA Yojana is a governmental programme that offers loans for women business owners. This grant has various schemes customised for different businesswomen, like micro-business owners, Small and Medium-Sized Business (SMB) owners, and ambitious entrepreneurs.
Based on the businesses, the grant amount also varies from 50,000 rupees to over 10,00,000 rupees, ranging over different categories such as Shishu, Kishor, and Tarun.
An initiative by the Small Development Bank of India (SIDBI), the Mahila Udyam Nidhi Scheme was introduced to encourage the entrepreneurship of women. This plan, which offers up to 10 lakh rupees, was first launched by Punjab National Bank by SIDBI and later expanded to other lending and financial institutions.
Connecting and interacting with like-minded people will be beneficial in your career, especially when building a new business from scratch. There are various women entrepreneurs who have excelled and set an inspiration for upcoming budding businesswomen. Let’s discuss some of these people.
A popular name in the Indian business world, Falguni Nayar is a strong influence for budding businesswomen. Falguni Nayar, the founder of the well-known Nykaa Fashion, left her investment banking career and started her brand when she was 50 years old.
Oprah Winfrey is highly regarded as a prominent personality in the world of media. Starting off as a TV personality, Winfrey turned to entrepreneurship in 2000 by co-founding Oxygen Media. She hosted her talk show until 2011 and now serves as the CEO of the Oprah Winfrey Network (OWN).
Whitney Wolfe Herd is an inspiring businesswoman who became a prominent figure in the male-dominated tech industry. She started off as the co-founder of Tinder, a dating app. But later left Tinder and began her own company, Bumble.
Upasana Taku, a well-known Indian entrepreneur, has played a significant role in driving the fintech revolution in India. She co-founded MobiKwik, a digital platform focused on facilitating online payments. Upasana made a large impact in India through her initiative, proving that women entrepreneurs can excel in the fintech field as well.
Before winding up this blog, let us discuss some of the top business ideas that can offer a side hustle or startup opportunities for women in India. From home-based businesses to small-scale and startups, the opportunities are endless in our contemporary society. So, let’s have a look at them.
Building your own empire in the business world is not a distant dream anymore. With the right mindset, strategic planning, and proper mentorship, you can also become a successful businesswoman, breaking all the conventional barriers and stereotypes.
We hope this blog has given you a comprehensive guide on how to begin your journey to be a successful female entrepreneur. Additionally, we have also discussed the government programmes that help women entrepreneurs in the country, the success stories of some inspiring businesswomen across the world, and some interesting and beneficial business ideas.
Many women hesitate to begin their entrepreneurial journey due to the fear of failure or intense competition. But with the right support system, you can overcome self-doubt and avoid burnout while building a fulfilling career.
However, remember, success is not something that can be achieved overnight. It needs sheer passion, consistency, and hard work. So, whether it be flagging off your business journey or business scaling, it’s the small but persistent work that counts.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
Reviewed by Ibnujala
Have you ever wondered how to save money with a 20,000 salary, with your bills, EMIs, and other expenses waiting for you? If so, you are not alone. While a 20k salary presents challenges, it also encourages smart budgeting and creative ways to manage rising living expenses.
But what if we told you that you can save a small portion of your salary for your future needs and emergency expenses? Yes, whether your salary is 20k or 200k, making minute changes in your spending habits, budgeting techniques, and lifestyle will help start your saving habit.
This guide will walk you through practical methods and strategies to help you manage a ₹20,000 salary effectively while building your savings. Wondering about the best ways to save and invest on a limited income? Don’t worry, we’ve got you covered.
Ready to make every rupee work smarter for you? Here’s how you can make the most of your ₹20,000 salary and turn it into a tool for financial progress instead of a limitation.
People normally think that it is impossible to save money with small salaries. But is it true? Is it possible to save money from a 20,000 salary? Yes. According to financial experts, with methods like the 50/30/20 rule, save-then-spend rule and other strategies, saving money with a 20000 salary is possible.
However, it takes discipline, planning, budgeting, and a little bit of lifestyle changes to achieve this goal. You need to plan your spending, initiate smart investments like mutual funds, PPFs, PFs, and more, cut short unwanted expenses, and more to budget a 20k salary.
Although salaried people might find these changes and strategies a bit difficult at first, in the long run, these savings will be helpful in maintaining emergency funds and additional savings. Interestingly, Gen Z and millennials are slowly picking up these habits, turning into budget-conscious individuals.
In the coming sections, let us discuss the different savings strategies, investment plans, and budgeting methods that help make saving money from your salary more effortless.
Identifying and categorising your monthly expenses and spending are essential to improving your savings. This helps you recognise where you might be overspending and identify unnecessary costs that can be trimmed or avoided altogether.
Once these expenses are identified and your spending is categorised, you can better strategise budgeting methods like the 50/30/20 rule and the save-then-spend rule.
Here are some points that will help you identify and categorise your spending.
Keeping track of all your expenses is essential to identifying and managing your spending and savings. Keep a diary or a mobile application to note down all your expenses. Include everything, including the small expenses like buying a snack or recharging your mobile phone.
Splitting the expenses into needs, wants, and investments will help improve your savings strategies. Through this method, you can identify your unavoidable as well as unnecessary expenses and manage them accordingly.
Set limits for every expense, like needs, wants, and savings, and stick to those limits. You can make use of money management apps like Mint, You Need a Budget (YNAB), Money Tracker, and more to easily set and manage spending limits.
Moreover, if you are a credit card user, limit yourself from using them extensively. Additionally, ensure that you pay off the credit card debts on time to avoid interest.
Once you set spending limits, split expenses into different categories, and track every expense, you will be able to identify your unnecessary expenses. So, continuously evaluate these factors on a weekly and daily basis to identify your spending and curb impulsive spending habits.
The 50/30/20 rule is the most beneficial budgeting method you need to know for effective money saving. This widely used method makes saving easier by dividing expenses into three categories: needs, wants, and savings.
Under this approach, an individual’s post-tax income is allocated as 50% for essential needs, 30% for personal wants, and 20% for savings.
No matter what the salary of an individual is, experts suggest that following this rule will help effectively save money for the future.
However, what are these needs, wants, and savings? Let us break this concept down into more detail.
This rule suggests keeping 50% of your salary for your needs. These needs include the unavoidable expenses in a person’s life. Some of these expenses include:
So, if your salary is 20,000, according to the 50/30/20 rule, you can use 10,000 for your needs. The rest 10,000 will go for other expenses and savings.
The next category is for the wants. While needs are the unavoidable expenses in a person’s life, wants are add-ons that improve the lifestyle of an individual. This can be engaging in your favourite hobby, going to a movie, and more.
These are activities or expenses that we need in life. However, they are not essential or unavoidable. According to the 50/30/20 rule, 30% of the salary or after-tax income can be devoted to these wants.
So, a person who has a monthly salary of 20,000 can use 30% of it, which means 6000 per month for the additional expenses. From this amount, a small amount can also be used for cheat spending, which can be used to treat yourself occasionally.
Some of the major wants can include:
The last 20% of your salary should be used for savings or investments. According to expert opinion, an individual should have at least 3 months or more of emergency savings. This will help them manage any unexpected financial needs like medical expenses, car or house maintenance, and more.
Moreover, these savings will also help achieve major goals like buying a house or a dream vehicle in the long run. So, individuals should invest in savings instruments like mutual funds, fixed deposits, digital gold, Unit-Linked Insurance Plans (ULIP), and others to improve savings.
So, if your monthly salary is 20,000, you should save 4000 a month, according to the 50/30/20 rule.
However, sticking to this rule might not always be possible. Considering the living expenses and other needs, especially in metropolitan cities, people might have to make slight adjustments in this rule, making it a 60/20/10 or something else, based on the expenses and emergencies.
Before getting into the details of the various investment plans, let us have a quick look at ways you can reduce spending and save your money.
We have already discussed the 50/30/20 rule and the necessity to save 20% of your salary. But how do you actually set aside this money, and where should you keep it? This part will address those questions and provide you with clear guidance. Here, we will discuss some prominent savings plans that you can adopt based on your available capital and risk tolerance capacity.
Mutual funds are a good savings option for investors. Here, money is pooled from different investors and invested in securities like equities and bonds.
Mutual funds are of different types, such as
Have you heard of SIP? SIP, or Systematic Investment Plan, is a method for investing in mutual funds at predetermined time intervals. According to this plan, an investor can choose a specific mutual fund scheme and invest in it automatically, preferably every month.
The major benefit of SIP is that investors can begin their investment with as little as Rs. 500 in most cases. This plan does not require huge amounts or lump sum investments. So rather than investing in mutual funds with a huge one-time investment, people can opt for small amounts at regular intervals, offering a higher return.
A savings plan available in different forms like perpetual SIP, flexible SIP, and top-up SIP, this program makes investors more disciplined, offers compounding benefits, and many more. However, although a relatively safe investment option, SIP is also subject to market risks, volatility, and underperformance of selected mutual funds. Therefore, ensure that you select funds that match your risk appetite.
Public Provident Fund, or PPF, is yet another investment plan that allows long-term investments with small investments at fixed intervals. This is one of the most common investment plans chosen by individuals who seek high yields in a better and safer way.
Once a PPF account is opened, investments will be made at regular intervals, and the interest will be compounded. This method is considered comparatively safe, as it is mandated by the government, offering guaranteed returns.
Additionally, investing in a PPF offers tax advantages under Section 80C, with a minimum contribution of Rs. 500 per financial year and an annual limit of Rs. 1.5 lakh. However, investors should look for potential risks like changes in government policies. Limited liquidity, lower returns compared to market-linked investments.
Fixed deposits (FDs) are commonly viewed as among the safest choices for investing. Here, people begin an FD account in banks or financial institutions, where they deposit a specific amount of money for a predetermined tenure.
Investors receive a fixed rate of interest on their invested principal. However, this interest will not change over the period, and hence the interest rates of different banks should be compared before finalising the platform for investing.
RDs, or recurring deposits, are similar investment options to those of FDs. They are also small investments made for a fixed time frame with monthly or predetermined investments. Once the determined time frame ends, the investors will get the invested money and its compound interest.
Recurring Deposits (RDs) typically offer higher interest rates than Fixed Deposits (FDs) and come with more flexible terms regarding tenure and investment limits. Moreover, RDs have more liquidity, and investors can withdraw their investments before completing the tenure with minimal to no penalties.
Unit Linked Insurance Plan (ULIP) is an investment plan that offers dual benefits. It serves as insurance and an investment by providing life coverage as well as the benefits of investing in the stock market or debt funds.
The payments made on ULIP are split into two parts, where one goes to life insurance and the other to the investment in mutual funds like equity, debt, or hybrid. This plan allows investors to switch between the investments, helping them gain the best ULIP plans.
Although ULIP is flexible and offers various benefits, it has a lock-in period of five years, during which the investors are not allowed to make any withdrawals. Moreover, this plan is also subject to market volatility, additional charges, and lower death benefits compared to term insurance.
Moreover, people with a 20,000 salary might at times face difficulties in maintaining ULIP due to its lock-in period and charges. So, they can also opt for term insurance and mutual fund SIPs over ULIP.
A Certificate of Deposit (CD) is an additional savings vehicle that individuals can utilise. It functions as a savings account where you can deposit money and earn interest on your funds.
Unlike standard savings accounts, CDs have specific restrictions, including limited flexibility. The investments made through this plan cannot be withdrawn before completing the tenure, as it will cause penalties. Moreover, this is widely used in foreign countries.
Another option to consider besides CDs is a high-yield savings account, a widely used Indian alternative. As the name implies, this scheme offers a greater interest return on your investment. However, these accounts demand a huge initial investment.
Offered by the Pension Fund Regulatory and Development Authority (PFRDA), the National Pension System is a good savings option for those with a budget of 20k salary. With this investment option, individuals can make systematic investments with their salary, focusing on their retirement life, which helps build a retirement corpus.
Any Indian between the ages of 18 and 70 can invest in NPS. linked with the market, this plan is a voluntary scheme that offers tax benefits. Moreover, NPS is flexible and can be managed from anywhere in India, even after changing jobs or locations.
Now, you might be clear that investments need not be huge to begin a savings plan. Even an Rs. 20,000 salary is good enough to start saving for the long run. However, in order to have monthly savings, it is important that you follow a disciplined budget plan by cutting off unnecessary expenses.
Along with following the 50/30/20 rule, the save-then-spend rule will also help individuals develop a good saving habit. However, if you are still in doubt about the investment plans and strategies you can adopt to improve your savings from your 20,000 salary, you can seek help from experts and financial managers.
Several identified platforms, like Finquo Versity, offer guidance and assistance in financial management and budget planning. The various courses, webinars, and discussions provided by these platforms will help you increase your financial literacy and, in turn, make the maximum savings from your salary, no matter how big or small it is.
So far, we have discussed a whole lot of things, from budgeting to saving and investing. We hope that this blog has helped you identify the important points that help you identify your expenses, cut short the unnecessary ones, and know what to look for while investing.
Moreover, we have already elaborated on the 50/30/20 rule and the various investment plans that anyone, whether they are a salaried individual, a youth, the Indian middle class, or a millennial, can follow. Furthermore, you can also consider diversifying your investments by investing in digital gold and other latest options.
So, although the question of how to save money with a 20,000 salary might loom in your mind as a challenging task, with the right planning, mindset, and disciplined approach, you can make your savings plan and long-term goals possible. Therefore, start small but engage in smart investments with the right tools, expert advice, and an attention to detail.
Uma Nair is a professional content writer with over 3 years of experience and a strong foundation in crafting engaging and informative content across diverse domains. Over the years, she has dealt with various niches, and her growing interest in finance has led her to explore the world of financial writing. As an English Language and Literature postgraduate, her educational background supports her ability to convey complex topics in easy and accessible content. In her free time, she stays updated on industry trends to continually enhance the value of her content.
Reviewed by
Ibnujala is a seasoned financial expert of Indian and Middle Eastern markets with an experience of over 15 years. His deep interest in neuroscience fuels his research in seamlessly blending finance and science. With a bachelor’s degree in law from India and an MBA from the UK, his diverse academic background makes him an expert in financial management and mentorship. In addition to being a seasoned investor and serial entrepreneur, he currently serves as the CEO of Finquo Versity.
Disclaimer: The information provided in this blog is for educational and informational purposes only and should not be considered as financial or investment advice. Stock market investments are subject to market risks, and past performance is not indicative of future results. Readers are encouraged to do their own research and consult with a licensed financial advisor before making any investment decisions. The author and publisher are not liable for any financial losses or damages incurred from following the information provided in this blog.
Uma Nair
