Planning before saving: How to get more from your income

Increase income and reduce expenses, say financial planning experts

The Reserve Bank of India (RBI) reported this week that India's household savings have fallen to a decadal low of 5.1 per cent in Financial Year 2023 (FY23) due to rising inflation. From 11.5 per cent in FY21 to 7.2 per cent in FY22, household net financial assets have consistently declined. The primary cause of decreasing savings and increased borrowing is likely the combination of stagnant or declining household incomes in the face of rising inflation.

A Bhartii (name changed), 42, is a marketing manager for an electric vehicle station startup in South Mumbai. "Our household income hasn't increased, while