Monthly Budgeting Made Simple: The 50-30-20 Rule
A simple way to split your salary between needs, wants and savings — with an example you can copy today.
C
Coastal Samachar Desk
2 min read
Budgeting doesn't need spreadsheets with fifty rows. The 50-30-20 rule is a simple starting point.
The rule
- 50% for needs – rent, groceries, bills, loan EMIs.
- 30% for wants – eating out, shopping, trips.
- 20% for savings – emergency fund, investments, insurance.
An example
On a take-home salary of ₹40,000:
| Bucket | Share | Amount |
|---|---|---|
| Needs | 50% | ₹20,000 |
| Wants | 30% | ₹12,000 |
| Savings | 20% | ₹8,000 |
Make it automatic
Set up an automatic transfer to savings on salary day. What you don't see, you won't spend.
Adjust to your life
If rent is high, needs may take 60%. That's fine — the key is to save something every month.
