Living on a monthly take‑home pay of just ₹24,800 may seem challenging—especially in 2025, when everyday costs rise and unexpected expenses pop up. Yet with the right mindset, practical strategies, and disciplined habits, you can not only cover your essentials but also save, invest, and plan for the future.
Understanding Today’s Cost of Living
Before creating a budget, you need a clear picture of what things cost right now. Even though retail inflation fell to 2.82% in May 2025—the lowest since February 2019—prices of essentials still weigh heavily on low incomes . Here’s a snapshot of typical monthly expenses in a city like Gurgaon or Delhi, based on June 2025 data:
These basics alone sum to around ₹37,320, which exceeds a ₹24,800 salary. Clearly, we need smarter strategies—tailoring spending to fit your means, finding lower‑cost alternatives, and optimizing every rupee.
Step 1: Track Every Rupee with a Simple Budget
Goal: Understand exactly where your money goes so you can reallocate it wisely.
- Pick a Tracking Method
- Spreadsheet: Create columns for income, fixed expenses, variable costs, and savings.
- Budgeting App: Tools like Walnut or Money View auto‑sync your bank and card feeds for real‑time tracking.
- Spreadsheet: Create columns for income, fixed expenses, variable costs, and savings.
- Categorize Expenses
- Needs (60%): Rent, utilities, groceries, transportation—aim for no more than ₹14,880 on a ₹24,800 salary.
- Wants (20%): Dining out, entertainment, subscriptions—cap at ₹4,960.
- Savings & Investments (20%): ₹4,960 pre‑committed before you spend a rupee (the “pay yourself first” rule).
- Needs (60%): Rent, utilities, groceries, transportation—aim for no more than ₹14,880 on a ₹24,800 salary.
- Review Weekly
Spend 10 minutes every Sunday reconciling actual spends against your budget. Highlight overspending categories and adjust for the next week. - Identify Leaks
Cancel under‑used subscriptions, consolidate grocery runs to avoid impulse buys, and replace high‑cost services (like a full‑time maid) with lower‑cost alternatives (part‑time help or self‑service).
By meticulously tracking, you’ll spot waste and redirect money toward priorities.
Step 2: Slash Housing Costs Creatively
Rent is often the largest expense. On ₹24.8 k, you must aim far below the market average. Options include:
- Shared Accommodation: Rent a single room in a 2 BHK with roommates. At ₹9,000–12,000 total, your share can be just ₹4,500–₹6,000.
- Outskirts or Smaller Towns: In Tier‑II/III cities, a 1 BHK can cost ₹6,000–10,000. Even in Delhi NCR, Faridabad or Ghaziabad rents drop by 30–40% compared to central Gurgaon.
- Look for PGs with Utilities Included: Paying ₹7,000–8,000 all‑inclusive may still beat ₹9,000+ for a solo 1 BHK.
Tip: Negotiate rent by offering longer lease terms or by paying a few months up front, if you can, to secure a discount.
Step 3: Optimize Utility & Connectivity Expenses
Full‑price utilities can eat ₹3,500 monthly. Try these hacks:
- Energy Efficiency: Switch to LED bulbs, switch off idle appliances, and use ceiling fans over AC when possible—this can cut your electricity bill by 20–30%.
- Water Conservation: Fix leaks, use bucket bathing, and install low‑flow faucets.
- Internet Bundles: Shop around—many local ISPs offer ₹499/month unlimited plans with decent speeds, versus ₹1,000 for national brands.
- Mobile Data Saving: Use Wi‑Fi at home for heavy usage and pick a ₹299/month prepaid plan with data rollover instead of a ₹600 unlimited plan.
Small reductions in utilities can free up a few hundred rupees each, adding up to thousands annually.
Step 4: Smart Grocery & Meal Planning
Groceries typically run ₹6,000–₹8,000 for one person. Here’s how to trim:
- Buy in Bulk: Purchase staples like rice, dal, and cooking oil in larger quantities from wholesale markets—saves 10–15%.
- Seasonal & Local Produce: Opt for fruits and vegetables in season; they cost less and taste better.
- Cook at Home: A home‑cooked meal costs ₹30–₹40 per plate; restaurant meals average ₹200–₹300 per head.
- Batch & Freeze: Cook large portions on weekends, freeze in meal‑sized packs to avoid daily cooking time and temptation to order in.
By meal‑prepping and buying smart, you can push your grocery bill down to ₹4,000–₹5,000 monthly—a savings of ₹2,000+.
Step 5: Economical Transportation
Commuting can range from ₹1,500 to ₹4,000. To minimize:
- Public Transport Pass: A monthly bus or metro pass often costs ₹1,200–₹1,500, versus ₹3,500 in fuel and riding services.
- Carpool or Rideshare: If public transport doesn’t fit your route, find two to three coworkers to split petrol costs.
- Electric Scooter/Bike: A one‑time investment of ₹40,000–₹50,000 can cost ₹2 per km—ideal if you commute under 30 km/day.
- Work From Home Negotiation: If your employer allows even one work‑from‑home day weekly, you’ll save on commuting and meals.
Cutting commuting costs can free up ₹1,000–₹2,000 monthly for savings or investments.
Step 6: Minimize Discretionary & Impulse Spending
With only ₹4,960 discretionary budget:
- Apply the 24‑Hour Rule: For non‑essentials above ₹200, wait a day. Most urges pass.
- Cash‑Envelope System (Digital): Allocate your ₹4,960 across “e‑wallet envelopes” (e.g., ₹2,000 for dining, ₹1,000 for entertainment, ₹1,960 for splurges). Once an envelope is empty, no more spending in that category.
- Unsubscribe & Uninstall: Cancel little‑used streaming or shopping apps that tempt you to spend.
- Be Mindful with Discounts: A “50% off” leather belt at ₹1,500 still costs ₹750—more than a month’s internet bill. Only buy if it fits your plan.
Mindful spending keeps your wants in check without feeling deprived.
Step 7: Build an Emergency Fund First
Goal: Avoid derailing long‑term goals when life throws curveballs.
- Target Size: 3–6 months of expenses. On your reduced budget of ₹20,000 (post‑cuts), that’s ₹60,000–₹1.2 lakh.
- Where to Park:
- Ultra‑Short Debt Funds: ~6.5% returns with high liquidity.
- Sweep‑in Fixed Deposits: ~6.5–7% without sacrificing instant access.
- Ultra‑Short Debt Funds: ~6.5% returns with high liquidity.
- Automate Contributions: Even ₹1,000/month to an emergency fund hits ₹12,000 a year. After 5 years, you’ll have ₹60,000—halfway to your 3‑month goal.
A solid cushion stops emergencies from forcing you to borrow at 18–24% interest on credit cards or personal loans.
Step 8: Systematic Saving & Investing
Once your emergency fund is underway and debts under control, channel your “pay‑yourself‑first” ₹4,960 into:
- Recurring Deposits (RDs): Earn ~7%—better than idle savings.
- Public Provident Fund (PPF): 7.1% tax‑free, 15‑year lock‑in, great for long‑term goals .
- Micro SIPs in Mutual Funds: Even ₹500/month in an equity SIP—leveraging rupee cost averaging—can grow substantially over 10 years. In May 2025, SIP inflows hit a record ₹26,688 crore.
- Government Small Savings Schemes: Sukanya Samriddhi Yojana for girls offers 8% tax‑free returns.
Automate these transfers on salary day so you never skip a deposit.
Step 9: Supplement Your Income with Side Hustles
On ₹24.8 k, every extra rupee counts. Consider:
- Freelancing: Content writing, graphic design, or tutoring in your field of expertise—platforms like Upwork or UrbanPro.
- Rideshare/Delivery: Part‑time work with Swiggy, Zomato, or Uber in evenings or weekends.
- Micro‑Entrepreneurship: Drop‑shipping via Shopify, selling handmade crafts on Etsy or Instagram.
- Online Surveys & Cashback Apps: Swagbucks, Google Opinion Rewards—for small but easy earnings.
An extra ₹5,000–₹10,000 per month can transform your budget, letting you save more aggressively and reduce stress.
Step 10: Manage Debt Wisely
High‑interest debt is a budget killer. If you must borrow:
- Personal Loans vs. Credit Cards: Personal loans often charge 12–14%, while credit cards hover at 18–24%. Always pick the lower rate or avoid cards entirely.
- Home Loan Top‑Up: Post‑repo cut to 5.50%, banks offer top‑up loans at 7–8% for balance transfers—use this to clear high‑cost debts .
- Debt Snowball/Avalanche: Pay off either the smallest balance first (snowball) or highest interest first (avalanche) to accelerate debt freedom.
Eliminating debt frees up cash for your emergency fund and investments faster.
Step 11: Review, Adjust & Celebrate Milestones
Your budget is a living document:
- Monthly Check‑Ins: On the 1st, update your tracker—income changes, expense shifts, and progress on saving goals.
- Quarterly Deep Dive: Compare actual vs. planned, revisit categories that consistently overshoot, and adjust percentages.
- Celebrate Wins: Treat yourself modestly when you hit milestones—a ₹200 coffee outing or a free day trip—to keep motivation high without derailing progress.
Regular reviews keep you on track and turning small gains into big wins over time.
Conclusion
Managing responsibilities on a ₹24,800 salary in 2025 takes creativity, discipline, and resilience—but it’s far from impossible. By understanding real costs, tracking every rupee, optimizing housing and utilities, planning meals, automating savings, and exploring side incomes, you can balance essentials, save for the future, and even invest for growth. Start with one step today—perhaps sharing your rent, trimming your grocery bill, or automating a ₹500 SIP—and watch how small changes compound into financial security.
Source : thepumumedia.com