The 50/30/20 rule is one of the simplest budgeting frameworks ever created. It divides your take-home salary into three buckets: needs, wants and savings. Here's how to adapt it for Indian salaries and lifestyles.

The Rule Explained

• 50% — Needs: Rent, groceries, utilities, EMIs, insurance, transport, domestic help, children's school fees
• 30% — Wants: Dining out, entertainment, shopping, subscriptions, vacations, gadgets
• 20% — Savings & Investments: SIPs, PPF, FDs, emergency fund, debt repayment above minimums

Adapting for India

Many Indian families naturally save more than 20% — and that's great. If you're in your 20s-30s with fewer commitments, aim for 50/20/30 (30% savings). If you have EMIs eating into your needs, temporarily adjust to 60/20/20 and work on reducing debt.

Indian-specific needs that people forget: domestic help (₹2,000-8,000/month), school fees (₹3,000-25,000/month), and festival/wedding expenses (budget ₹2,000-5,000/month as a sinking fund).

Examples by Salary

Category	₹30,000	₹50,000	₹1,00,000
Needs (50%)	₹15,000	₹25,000	₹50,000
Wants (30%)	₹9,000	₹15,000	₹30,000
Savings (20%)	₹6,000	₹10,000	₹20,000

At ₹30,000 salary, ₹15,000 for needs is tight in metros. You may need to share rent or live with family. At ₹1 lakh, try pushing savings to 30% (₹30,000) — the extra ₹10,000/month in SIPs makes a massive difference over 20 years.

Common Mistakes

• Treating EMIs as "savings" — a car loan EMI is a need (liability), not savings
• Ignoring irregular expenses — insurance premiums, annual subscriptions, festivals
• Not tracking at all — you can't improve what you don't measure

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