Money problems can seem scary when you’re just starting out in life. Between college fees, your first job salary, and extra income from side work – it’s normal to feel confused about handling everything.
The truth is, you don’t need to be a money expert to do well. What really helps are simple tips that normal people can actually use. That’s exactly what I’m sharing here – real advice that works in everyday life, not just in books.
It doesn’t matter if you’re:
- A student trying to make your pocket money last
- Someone who just got their first job
- Doing extra work to earn more
Small steps taken regularly can change everything. I’ve seen people save more, avoid money troubles, and feel more confident just by following basic rules. The best part? You can start right now, no matter how much money you have today. Lets take a look on 8 finacial tips that can help you manage your expenses and savings whether you are a student, employee and side hustlers.
1. Track Your Spending (Know Where Your Money Goes)
Most young adults don’t realize how much they spend on small things like coffee, food delivery, or online shopping. The first step to financial control is tracking every rupee you spend.
How to Do It?
- Use a free app like Money Manager, Walnut, or Excel
- Check your bank statement weekly
- Categorize expenses (Food, Travel, Entertainment, etc.)
My Experience: When I started tracking my expenses, I realized I was spending ₹3,000/month just on food delivery! Cutting that in half saved me ₹18,000 a year.
2. Save First, Spend Later (The Golden Rule)
Most people spend first and save what’s left—which is usually nothing. Flip this habit:
The 50-30-20 Rule (Simple Budgeting)
- 50% for needs (rent, bills, groceries)
- 30% for wants (movies, shopping, eating out)
- 20% for savings & investments
Pro Tip: Set up auto-transfer to move 20% of your salary to savings as soon as you get paid.
3. Build an Emergency Fund (Your Financial Safety Net)
Unexpected expenses will happen—medical bills, car repairs, or sudden job loss. An emergency fund prevents debt in crises.
How Much to Save?
| Situation | Emergency Fund Target |
|---|---|
| Student | ₹20,000 – ₹50,000 |
| Working Professional | 3-6 months’ salary |
| Side-Hustler | At least ₹50,000 |
Where to Keep It?
- Savings account
- Liquid mutual funds (easy to withdraw)
4. Avoid Bad Debt (Credit Cards & Personal Loans)
Not all debt is bad—but high-interest loans can ruin your finances.
Good Debt vs. Bad Debt
| Good Debt | Bad Debt |
|---|---|
| Education loan (invests in your future) | Credit card debt (36% interest!) |
| Home loan (asset grows over time) | Personal loans for shopping/vacations |
| Business loan (if used wisely) | “Buy Now, Pay Later” schemes |
My Rule: If the interest is above 12%, avoid it unless absolutely necessary.
5. Start Investing Early (Even Small Amounts Matter)
You don’t need lakhs to start investing. Even ₹500/month in a SIP (Mutual Fund) can grow into big money over time.
Example: ₹1,000/month Investment
| Investment Type | 10 Years | 20 Years |
|---|---|---|
| Savings Account (4%) | ₹1.5 Lakh | ₹3.6 Lakh |
| Mutual Fund (12%) | ₹2.3 Lakh | ₹10 Lakh+ |
Start Small, Stay Consistent.
6. Learn Basic Tax Saving (Save Money Legally)
PayPaying taxes is necessary, but saving tax is smarter! Here are the best options for young earners:
- ELSS Funds – Invest through SIPs (₹500/month minimum) to save tax under Section 80C while earning market-linked returns. Lock-in: Just 3 years.
- PPF – The safest 80C option with 7-8% returns. Ideal for long-term goals like buying a home.
- Health Insurance – Premiums qualify for Section 80D deduction. Bonus: Cover aging parents for extra benefits.
Pro Strategies:
• Use your full ₹1.5 lakh 80C limit – could save ₹45,000+ in taxes
• Combine ELSS (growth) + PPF (safety) for balanced tax planning
• Start early – don’t wait until March rush
Remember: Tax-saving instruments should align with your financial goals, not just save tax. Even small, regular investments can compound into significant savings over time. Always consult a CA for personalized advice.
7. Get Health Insurance (Don’t Wait for Emergencies)
A single medical emergency can wipe out years of savings in days. Imagine facing a ₹3-5 lakh hospital bill without insurance – this nightmare becomes reality for many young adults who think “I’m healthy, I don’t need coverage.” Here’s the truth:
A ₹10 lakh health insurance policy costs only ₹500-1,000 monthly when you’re young – less than what most spend on weekend outings. But this small investment protects your entire savings account.
3 Compelling Reasons to Buy NOW:
- Lock in Lower Premiums – Prices increase 8-10% yearly and double after age 35
- Bypass Waiting Periods – Pre-existing disease coverage starts immediately when you’re young and healthy
- Build Lifetime Coverage – Continuous coverage ensures no waiting periods when you need it most
Pro Tip: Look for policies with:
- Cashless hospital network
- Day-1 accident coverage
- Free annual health checkups
Don’t wait for a health scare to act. The best time to buy insurance was yesterday – the second best time is today. Your future self will thank you for this financial armor.
8. Keep Learning (Financial Knowledge = Power)
Money rules keep changing. Stay updated with:
- Finance blogs (like mine on Wheon.com)
- Books (Rich Dad Poor Dad, The Psychology of Money)
- YouTube channels (CA Rachana Ranade, Labour Law Advisor)
Start with one tip today—small steps lead to big results!
Conclusion
Managing money isn’t about being rich—it’s about making smart choices. Whether you’re a student, a worker, or a side-hustler, these 8 financial tips will help you save more, avoid debt, and grow wealth over time.
FAQs
How much should a student save per month?
Start with 10% of your pocket money/income—even ₹500/month makes a difference.
Is SIP safe for beginners?
Yes! Start with large-cap mutual funds (less risky).
What’s the first financial habit I should build?
Track your spending—it’s the foundation of everything.
How do I avoid overspending?
Delete shopping apps, use cash for daily expenses, and set a monthly spending limit.
Where can I learn more about finance?
Follow my blogs on Wheon.com for simple money tips!
