50/30/20 rule
A simple budget: 50% of take-home pay for needs, 30% for wants and 20% for savings and investments.
Needs are what you must pay: rent or EMIs, groceries, bills, insurance, school fees. Wants are what you could cut: eating out, shopping, trips, subscriptions. Savings include SIPs, PPF and paying down loans faster.
It's a starting point, not a rule. In expensive cities needs often take more than half; then the aim is to keep savings at 20% by spending less on wants.
Example
On ₹80,000 a month in hand: ₹40,000 for needs, ₹24,000 for wants, ₹16,000 saved.
50/30/20 Budget Calculator
Split your monthly in-hand pay into needs, wants and savings, and compare it with what you spend now.
Related terms
Rules as of tax year 2026-27. Written by the Welthr team; last reviewed on . Not financial advice.