The 50-20-30 framework adapted for Indian salaried income. Percentages are of take-home (post-tax) monthly salary.
| Bucket | Target % | What Goes Here | Example (₹60K take-home) |
|---|---|---|---|
| Needs (50%) | ≤ 50% | Rent, EMIs, groceries, utilities, transport, insurance premiums | ≤ ₹30,000 |
| Savings & Investments (20%) | ≥ 20% | SIPs, PPF, emergency fund, debt repayment (above minimum) | ≥ ₹12,000 |
| Wants (30%) | ≤ 30% | Dining out, entertainment, shopping, holidays, subscriptions | ≤ ₹18,000 |
| Category | Bucket | Monthly Estimate | Notes |
|---|---|---|---|
| Rent / Home Loan EMI | Needs | — | Keep below 30% of take-home alone |
| Groceries + household | Needs | — | Track per purchase via UPI history |
| Utilities (electricity/gas/internet) | Needs | — | Set auto-pay to avoid late fees |
| Transport (fuel/metro/cab) | Needs | — | Fuel + maintenance amortized monthly |
| Insurance premiums | Needs | — | Term + health; divide annual by 12 |
| SIP / Investments | Savings | — | Auto-debit on 2nd of month |
| Emergency fund top-up | Savings | — | Until 6 months of expenses saved |
| EMI on consumer loans | Savings/Needs | — | Debt repayment = savings bucket |
| Dining / Food delivery | Wants | — | High leak; set weekly cash limit |
| Entertainment / OTT | Wants | — | Audit subscriptions quarterly |
| Shopping / Clothing | Wants | — | Use wishlist rule: wait 72h before buying |