What Is the 50/30/20 Rule?
Split after‑tax income into 50% needs, 30% wants, 20% savings/debt.
Example: ₹60,000 / $720 Take‑Home
- Needs: 30,000 / 360
- Wants: 18,000 / 216
- Savings/Debt: 12,000 / 144
Adjusting the Ratio
High‑rent cities? Try 60/20/20 for a season, then optimize costs.
Tips to Implement
- Auto‑pay savings and debt on payday.
- Cap subscriptions inside the 30% bucket.
- Review categories quarterly.