Debt and Savings: How to Save Money While Paying Off Debt

Saving money while paying off debt can feel like trying to fill a bucket with a hole in it. Sound familiar? You're not alone—and the good news is, you're not stuck. With the right approach and a few powerful habits, you can absolutely save money while tackling your debt.

Over the years of helping thousands of people take control of their money, we've seen firsthand at TimelyBills how small, consistent choices can lead to major financial breakthroughs. Let’s explore how to strike the right balance between debt repayment and saving smartly—without feeling overwhelmed.

Why Save While You're in Debt?

It might seem counterintuitive. Shouldn’t you throw every extra rupee at your debt first? Not necessarily. Saving while you're in debt helps you:

• Build a safety net for emergencies (so you don’t end up relying on credit again).
• Reduce financial stress and improve your peace of mind.
• Stay motivated—seeing savings grow, even slowly, feels empowering.

1. Start with a Budget That Works for You

Everything begins with a realistic budget. But don’t just wing it. Use a budgeting tool like the TimelyBills Budgeting App to track your income, expenses, and goals in one place.

Think of budgeting as telling your money where to go, rather than wondering where it went. And the best part? Once you get into a rhythm, it actually frees you—not restricts you.

Pro Tip: Include a line in your budget for savings—even if it’s just ₹100 a week. The habit matters more than the amount at first.

2. Use the 70/20/10 Rule

Try dividing your income this way:

70% for essentials and lifestyle 20% toward debt repayment 10% toward savings

It’s flexible, realistic, and designed to help you maintain balance. Adjust based on your situation—but never drop savings to zero.

Want to visualize how your money is being used? The Spending Tracker inside TimelyBills makes it simple to see where every rupee goes.

3. Organize Bills to Avoid Late Fees

Missing payments or paying late can cost you dearly—both in fees and your credit score. Stay ahead of due dates using a Bill Organizer that sends you reminders and tracks everything in one place.

This one small step can free up more money for saving and reduce the pressure of last-minute scrambling.

4. Automate Your Savings

If you wait until “there’s money left,” savings may never happen. Instead, set up automatic transfers to a separate savings account the day your income hits.

TimelyBills’ Goal Tracker helps you stay on course, whether you’re saving for an emergency fund, a new gadget, or a family trip.

Small win: Even automating ₹200 a week means you’ll save ₹10,000+ a year without overthinking it.

5. Find Hidden Savings in Daily Life

You don’t need to sacrifice everything—just get a little creative. Here are a few smart, proven tips:

✅ Make a Shopping List and Stick to It

Impulse purchases are silent budget killers. Planning ahead with a list helps you avoid overspending.

✅ Shop on Wednesdays for Discounts

Many stores introduce deals midweek. By shopping smartly, you stretch your rupee further.

✅ Borrow or Rent Instead of Buying

Need a dress for one night? A drill for one project? Consider borrowing from a friend or renting—it’s easier on your wallet and the environment.

✅ Grocery Shop at Supermarkets & Off-Peak Times

Bulk buying and catching end-of-day discounts (like at midnight) can lower your bills significantly. Pair this with food storage hacks—like separating onions and potatoes—to avoid spoilage.

✅ Cancel Unused Subscriptions

Streaming apps, magazines, and auto-renewed memberships often go unnoticed. Do a monthly sweep and analyze your financial reports for surprise expenses.

6. Repair Before Replacing

From torn clothes to slow laptops, a simple repair could save you thousands. Often, a quick fix does the trick—without the need to splurge on something new.

7. Cut Entertainment Costs—Without the FOMO

• You can still have fun without blowing your budget:
• Watch matinee shows instead of evening movies.
• Host potluck dinners instead of dining out.
• Swap books, games, and toys with friends or through community groups.

And if you manage a household? Check out family budgeting tools designed to make shared expenses easier to handle.

8. Manage All Your Accounts in One Place

Having savings, credit cards, and multiple bank accounts? No worries. The Account Manager in TimelyBills keeps everything visible and organized—so nothing slips through the cracks.

Download the TimelyBills App

Want to put all these strategies into action right away? Download our app now and make saving while paying off debt simpler, smarter, and less stressful.

With years of experience in helping users take control of their finances, TimelyBills has everything you need to build better habits and see real results.

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Saving money while paying off debt doesn’t mean choosing one or the other—it means being intentional. With the right tools, a bit of consistency, and support from trusted solutions like TimelyBills, you can do both.

Start small. Stay steady. And celebrate every win—because they add up, faster than you think.

** What’s your favorite money-saving tip while handling debt? Share it with us in the comments! **

Frequently Asked Questions (FAQs)

1. Can I really save money while still in debt?

Yes! Even small savings each week can help build momentum and keep you from falling deeper into debt during emergencies.

2. What’s the best way to track spending and savings?

Using apps like TimelyBills can help you automatically track expenses, set goals, and see where you can cut back.

3. Should I stop saving until my debt is gone?

Not necessarily. Building even a small emergency fund can prevent more debt in the future, so a balanced approach is key.

4. How do I stop impulse buying?

Plan purchases with a list, avoid shopping when stressed or tired, and review your spending habits regularly using a spending tracker.

5. How does TimelyBills help with debt and savings?

TimelyBills provides tools like budget planners, goal trackers, and bill reminders—all designed to help you save smarter and pay off debt faster.