How to use the Monthly Budget Planner (50/30/20 Rule)
- Enter your monthly take-home salary.
- Enter what you spend on needs.
- Enter what you spend on wants.
- Compare with the 50/30/20 targets.
The 50/30/20 rule
- 50% needs: rent, groceries, EMIs, bills, insurance, school fees.
- 30% wants: eating out, shopping, entertainment, holidays.
- 20% savings: SIP, PPF, emergency fund, extra loan repayment.
In big cities rent alone can be 30-40% of income. If your needs are above 50%, cut wants first so you still save at least 20%.
Frequently asked questions
What is a good savings rate?
Saving at least 20% of take-home pay is a good target. Saving 30% or more builds wealth much faster.
These tools give estimates for general guidance and are not financial or tax advice. Rates and rules can change; check official sources before making decisions.