The rule
Of every rupee that hits your account: 50% goes to needs (rent, groceries, EMIs, utilities, insurance). 30% goes to wants (eating out, travel, gadgets). 20% goes to savings and investments.
It's a starting point, not a law - but it's a great reality check if you've never split your budget.
Adapting it for India
Indian metro rents and EMIs often push needs above 50% - that's fine, but try to keep savings at 20% minimum even if wants get squeezed.
If your needs are already low (sharing rent, no EMI), aim for 30/20/50 - supercharge savings while you can.
Key takeaways
- Automate the 20% savings on payday - out of sight, out of mind.
- Track for one month before judging - most people underestimate 'wants'.
- Reset the rule whenever your income jumps - don't auto-inflate wants.