Divide your take-home salary into three buckets: 50% for needs, 30% for wants, 20% for savings and investments. Simple. Memorable. It works.
| Salary | Needs 50% | Wants 30% | Savings 20% |
|---|---|---|---|
| ₹30,000 | ₹15,000 | ₹9,000 | ₹6,000 |
| ₹50,000 | ₹25,000 | ₹15,000 | ₹10,000 |
| ₹75,000 | ₹37,500 | ₹22,500 | ₹15,000 |
| ₹1,00,000 | ₹50,000 | ₹30,000 | ₹20,000 |
Living in a metro? Adjust to 55-25-20
In Mumbai or Bangalore where rent is 35–40% of salary, a 55-25-20 split is realistic. The critical rule: savings must be fixed, never “what’s left after spending.” Where does the 20% go? First: build your emergency fund. Then: a Nifty 50 index SIP. See: how much to invest based on salary.