Scenario inputs
- Monthly take-home income: INR 100,000
- Needs bucket: 50%
- Wants bucket: 30%
- Savings bucket: 20%
← Rules
The 50·30·20
Budget Rule
The 50·30·20
Budget Rule
A simple formula for financial clarity.
Split your after-tax income into three purposeful buckets — Needs, Wants, and Savings — and let compounding do the rest. No spreadsheets. No complexity. Just a rule that works.
3
Simple buckets
~2 min
To set up
∞
Financial peace
Explanation
Three numbers.
One framework.
Hover over each percentage to understand what it represents.
50%
Needs
Essential Needs
Rent/EMI, groceries, utilities, transport, insurance — things you genuinely cannot live without. Keep this under 50% to avoid lifestyle creep.
30%
Wants
Lifestyle Wants
Dining out, subscriptions, vacations, hobbies, shopping. These are discretionary — enjoyable but adjustable when needed.
20%
Savings
Savings & Investments
Emergency fund, SIPs, index funds, debt repayment. This 20% builds your future. Pay yourself first — automate this.
Calculator
Find your numbers.
Enter your monthly take-home income to instantly see your budget allocation.
Quick:
Your monthly budget breakdown
Essential
—
Rent, groceries, utilities, transport, insurance
50%50% of income
Lifestyle
—
Dining, subscriptions, shopping, entertainment
30%30% of income
Growth
—
Emergency fund, investments, SIPs, debt repayment
20%20% of income
Example Scenario
Monthly split with a sample income.
Calculation walkthrough
- Needs = 100,000 × 50% = INR 50,000
- Wants = 100,000 × 30% = INR 30,000
- Savings = 100,000 × 20% = INR 20,000
Chart
Rule allocation comparison chart.
The chart updates with your calculator income input.
Disclaimer: This framework is informational and not financial advice. The ratio can be adjusted for local cost of living, debt burden, and income stability.
Pro Tips
Make it work for you.
Automate savings first
Set up an auto-debit on salary day before you can spend. What you don't see, you don't spend.
Adjust the ratios
High rent city? Try 60:20:20. Aggressive saver? Try 40:20:40. The rule is a guide, not a cage.
Review monthly
Spend 10 minutes at month-end comparing actuals to your budget. Small habit, massive clarity.
Increase savings rate
Each raise? Keep lifestyle flat and funnel extra into savings. Hit 30% savings and watch your net worth accelerate.