The single most common question in personal finance: how much should I invest? Here is a practical framework for Indian salaried employees.
The 20% starting point
Aim to invest at least 20% of your take-home salary — aligned with the 50-30-20 budget rule.
| Salary | 10% (Minimum) | 20% (Recommended) | 30% (Aggressive) |
|---|---|---|---|
| ₹25,000 | ₹2,500 | ₹5,000 | ₹7,500 |
| ₹40,000 | ₹4,000 | ₹8,000 | ₹12,000 |
| ₹60,000 | ₹6,000 | ₹12,000 | ₹18,000 |
| ₹80,000 | ₹8,000 | ₹16,000 | ₹24,000 |
| ₹1,00,000 | ₹10,000 | ₹20,000 | ₹30,000 |
Emergency fund before SIP
Before starting any SIP, build 3–6 months of expenses as an emergency fund. Without it, you may have to redeem at the worst time — a market crash. Once your emergency fund is set, start a SIP. Even ₹500/month counts. Read: what is a SIP and ₹5,000 vs ₹10,000 SIP over 25 years.