50-30-20 Rule

 What is 50-30-20 rule?

Its a financial guide/policy on how to segregate your monthly income.





How does this work?

50% of salary accumulated under needs/ inevitables , like food, accommodation and transportation.

30% of salary accumulated for wish/ things we like to have apart from essential. Examples, visit to mall , dining at good restaurants, family trips etc..

20% of salary accumulated under savings section.

Why we need to follow this?/ What’s the value in it?

Despite of all essential, achieving savings in one’s income is hardest part. Our day to day lifestyle, needs and in the world of credit cards and EMI’s, it becomes quiet impossible. But if ourselves have this kind of split up and composition in mind, and segregated the spendings in planned way, savings are achievable.

Savings are the ultimate saver and confidence booster over our future and to tackle unexpected big medical expenses.

Note: All Emi’s and loans should be tackled under 30%, logically speaking, because this was a section comes under things we wish to have, which is not completely essential. Eg: Having Iphone rather going with android for day to day usage.



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