How can I save ₹1 lakh in 12 months?

To save ₹1 lakh in a year, aim to save around ₹8,333 per month. You can also split it into smaller monthly goals and use bonuses or tax refunds to reach the target faster.

What is the easiest way to save money every month?

The easiest way is to automate your savings. Set up an auto-transfer to a separate savings account at the beginning of each month. Track expenses and cut non-essential spending.

Should I use a recurring deposit or mutual fund to save?

If you want guaranteed returns, a recurring deposit is safe. For higher returns and some risk, consider SIPs in mutual funds. Choose based on your risk tolerance.

How do I stay motivated to save throughout the year?

Set a clear goal, like a trip or emergency fund. Track your progress monthly, reward small wins, and avoid lifestyle inflation to stay focused.

How to Save ₹1 Lakh in a Year

Q: Can a middle-class person save ₹1 lakh in a year?

Yes, with consistent planning, budgeting, and small lifestyle changes, a middle-class individual can definitely save ₹1 lakh in a year.

How to Save ₹1 Lakh in a Year: Simple Steps for Middle-Class Indians

Introduction

Wondering how to save ₹1 lakh in a year? Whether you’re earning a modest income or supporting a family, achieving this savings milestone is absolutely possible with a little planning and commitment. In this guide, we’ll walk you through simple strategies tailored for middle-class Indians to help you build your savings and take control of your financial future.

Why Saving ₹1 Lakh Matters

For many Indian households, ₹1 lakh is not just a number—it’s peace of mind. It could cover medical emergencies, fund a vacation, serve as an education buffer, or be the start of your investment journey. Saving consistently also builds discipline and financial security.

Step-by-Step Guide to Save ₹1 Lakh in 12 Months

1. Set a Monthly Savings Goal

Break down ₹1 lakh into 12 months:

₹1,00,000 ÷ 12 = ₹8,333/month If that feels tough, try this:
₹6,000 for 10 months + ₹20,000 in 2 bonus months (Diwali bonus, tax refunds)

➡️ Pro Tip: Start with what’s manageable. Even ₹6,000/month for most of the year + bonuses can help you hit ₹1 lakh without stress.

2. Track Your Expenses

Use a budgeting app like:

Walnut
Money Manager
Goodbudget

Tracking helps you spot unnecessary expenses like:

Daily snacks: ₹50 × 25 days = ₹1,250/month
Online subscriptions: Evaluate and cancel unused ones

3. Create a Monthly Budget

Use the 50-30-20 Rule:

50% Needs (rent, groceries, bills)
30% Wants (entertainment, eating out)
20% Savings

Even better, flip it to a Zero-Based Budget (ZBB) to give every rupee a purpose.

🔗 Read: What is Zero-Based Budgeting?

4. Cut Down Unnecessary Spending

Simple changes can help:

Cook at home instead of ordering in
Use public transport or carpool
Switch to prepaid mobile plans
Buy in bulk during sales

5. Automate Your Savings

Set up a monthly SIP (Systematic Investment Plan) or recurring deposit. This makes saving effortless. Consider:

Post Office Recurring Deposit
₹500/month SIP in mutual funds via apps like Groww or Zerodha

6. Use Cashback & Rewards Wisely

Apps like:

CRED
Paytm
PhonePe

Give you rewards or discounts. Use them for essentials and put the cashbacks into savings.

7. Take the 52-Week Savings Challenge

Start by saving ₹100 in Week 1, ₹200 in Week 2, and so on. In 52 weeks, you can save over ₹1 lakh with discipline.

Where to Save the ₹1 Lakh?

SBI Recurring Deposit – safe, low-risk
PPF Account – tax-free returns
Liquid Mutual Funds – low volatility, better than FDs
Digital Gold – for long-term wealth preservation

Common Mistakes to Avoid

Saving what’s left after spending
→ Instead, spend what’s left after saving
Dipping into savings for wants
Not tracking spending regularly

FAQ: How to Save ₹1 Lakh in a Year

How much should I save monthly to reach ₹1 lakh in 12 months?

You need to save about ₹8,333 per month.

Can a middle-class person save ₹1 lakh in a year?

Yes, by budgeting and cutting small daily expenses.

What is the best method to save monthly?

Automating savings via SIPs or RDs is the easiest way.

How can I save ₹1 lakh fast?

Use a weekly challenge or increase savings during bonus months.

Is it possible to save ₹1 lakh with a salary under ₹30,000?

Yes, but you’ll need strict budgeting, reduced wants, and possibly side income.

✅ Conclusion

Saving ₹1 lakh in a year might sound challenging, but with the right strategy, consistency, and a bit of discipline, it’s absolutely within your reach. Whether you start with ₹6,000 or ₹8,333 a month, every rupee saved brings you closer to financial freedom.

Remember, the key is starting now, no matter how small. Use the tips shared above, automate your savings, reduce unnecessary expenses, and stay motivated with your end goal in mind.

💡 Start today, and your future self will thank you!