Is the 50-30-20 rule practical for India?

Yes, the rule works well in India as a starting framework. However, those with higher EMIs or rent may need to adjust the proportions and still aim for at least 20% savings.

How do I apply the 50-30-20 rule to my salary?

List your monthly expenses and categorize them into needs and wants. Ensure at least 20% of your salary is saved or invested through SIPs, PPF, or other instruments.

Can the 50-30-20 rule be modified?

Yes. For high EMI households, try 60-20-20. For high-income earners, 40-20-40 is more effective. The goal is to maintain a disciplined savings habit.

Which tools can help me follow the 50-30-20 rule?

You can use the Smart Salary Investment Calculator to convert your savings portion into an actionable investment allocation based on age and goals.

50-30-20 Rule for Salary: Complete Guide (India 2025)

Q: What is the 50-30-20 rule?

The 50-30-20 rule divides your salary into three parts: 50% for needs, 30% for wants, and 20% for savings and investments. It is a simple budgeting method for salaried individuals.

How to apply the 50-30-20 budgeting rule for salaried Indians, with examples and practical adaptations.

What is the 50-30-20 Rule?

Divide your salary into: 50% needs, 30% wants, 20% savings & investments. It's a simple framework to keep spending and investing balanced.

Example Breakdown

For a ₹40,000 salary: Needs ₹20,000 | Wants ₹12,000 | Invest ₹8,000.

Adapting the rule

If you have high EMIs, increase Needs to 60% and keep Invest at least 20%. If your income is high, shift more into investments (30–40%).

Use tools to implement

Use our Smart Salary Investment Calculator to convert the Invest portion into a practical allocation (equity, PPF, gold).