How to save money in Pakistan

A person’s savings is the difference between his sources of funds and uses of funds. Whenever the former is greater than the latter, you save money. When the latter is greater than the former you end up losing money or in other words, you become indebted. If you understand and manage this equation properly, you can end up not just saving money but making money. This becomes even more important in a country like Pakistan, where inflation is increasing day by day. Read below our expert tips on how to save money in Pakistan.

Record Keeping

If you find yourself asking the question How to save money in Pakistan? then the first step towards saving has to be record-keeping. You know that every business relies strongly on bookkeeping/accounting. There is a long list of benefits of bookkeeping. Start recording your expenses and income every month or whenever it is required. By following this pattern, you will be able to identify the monthly expenses which cannot be avoided, expenses that can be curtailed, and expenses that can be saved. Regular record keeping will help you plan ahead of your expenses and assist you in saving money. Planning and proper budgeting will make it easier for you to save for a rainy day.

Increase your sources

Usually saving money is more demanding for the Salaried class. In an inflationary environment, saving money becomes even more challenging. Your salary might not be enough for you to save anything. Therefore, you should look at other sources that might give you some extra money. For instance, if you have any skills such as content writing, graphic designing, social media marketing, etc then you can provide these services worldwide through the internet. If you are good in one subject or more you can provide online classes for a fee. Online financial and business consultancy, virtual assistance, email marketing, e-commerce is just some of the activities which can earn you good money.


If you have some extra money, then you can put some of it in high return investments such as the stock market. The Pakistani stock market has performed exceptionally well in the last two decades. However, you must remember that you should be completely aware of the stock market because it is not a layman’s job. You can also invest in the mutual funds of banks, especially those which are known for their performance. Investing in real estate properties that can provide you with a rental increment or a handsome profit is also a good idea. Commodity investment is another way to increase your wealth. All these investments however require a certain degree of knowledge and skills which you must have to succeed. If you are risk-averse, you can deposit your savings into a high return deposit account. Usually, deposit accounts do not pay much because the inherent risk is very low. However, you may find a better rate when it comes to term deposits. The longer the term the higher the return.

Decrease your uses

Fuel & Utility Bills

One of the largest expenses a household faces is utility bills. In Pakistan, it is estimated that almost 60 % of a person’s salary is devoured by utility bills. However, there are a few things a person can do about this. Let us take the example of electricity. The price of electricity has increased substantially during the last few years. You can reduce this by installing an effective solar power generating system at home and if your system is powerful enough you can even benefit from net-metering i.e resupplying the national grid with the solar power you have generated, reducing your electricity bill manifolds. Another major expense faced by households is the vehicle fuel expense. The price of petrol in just one year has increased considerably. Keeping fuel-efficient vehicles or electric vehicles can reduce your monthly fuel expenses.

Reduce Dining out

Reducing your trips to restaurants is another great tip for how to save money in Pakistan? If you are also constantly wasting money in restaurants, then you need to revisit your saving strategy. Taking your family to a nice restaurant for dinner once in a while is alright, but don’t make it a regular habit. You can cook better food at home and a much lower price. Throw a rooftop BBQ party for your family instead of taking them to an expensive restaurant where you will have to pay even the General Sales Tax apart from excessive money for the simplest of things. A rooftop BBQ party would prove to be a much more interesting activity than dining out and will also save valuable money.

Staycation instead of Vacation

Perhaps the greatest tip on how to save money in Pakistan is through avoiding travelling. Instead of going for an exotic vacation which is sure to drain your savings, choose a staycation i.e not going anywhere. Exotic vacations, especially which involve air travel can wipe out your savings in an instant. If your family however insists you can take them on a road trip, maybe to a hill station or another city for a day or two. What you save and invest in today, might help you go for a much better vacation in the future.

Choose the right School

The right school does not have to be the most expensive one. Education is one of the most expensive things in Pakistan. Many schools demand excessively high fees but do not offer value for money. Your children’s school fee does not have to be a burden for you. Instead, choose a school that demands affordable fees and offers a proper learning experience to children.

Health Coverage

Get health coverage for yourself and your loved ones. At just a nominal monthly contribution, you can protect yourself and your family against unseen contingencies. If anyone of you requires urgent medical attention you will not have to stress over the finances.

Set a Goal

Defining a saving goal can encourage you to save more. For instance, you can plan to save for a vehicle that you want to purchase and set a target. This way you can identify how much you should save a month to reach your saving goal and act accordingly.

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