Budgeting
The Simple 50-30-20 Budget Formula for Indian Salaried Employees
On a ₹60,000 take-home salary, the 50-30-20 split gives you ₹30,000 for needs, ₹18,000 for wants and ₹12,000 for future goals. It is a starting budget, not a test you must pass.
1. Classify actual spending
Start with your last month's transactions. Rent, groceries and required repayments belong in needs; optional purchases belong in wants. Count each expense once. A credit-card payment should not be added again if you already recorded the purchases it covers.
2. Make room for irregular bills
Divide predictable annual costs by 12. A ₹12,000 annual bill needs a ₹1,000 monthly allocation even in months when no payment leaves the account. Without this step, your apparent savings can disappear at renewal time.
3. Review the first month
Set aside only an affordable amount on payday and compare the plan with actual spending. If essential costs exceed half your income, change the split while working on those costs. A sustainable ₹3,000 transfer is better than a ₹12,000 plan that forces borrowing.