The 50/30/20 rule is a straightforward budgeting strategy to manage your income efficiently. It allocates 50% of your income to needs, 30% to wants, and 20% to savings or debt repayment.
Needs include essential expenses like rent, groceries, and utilities. Wants cover discretionary spending such as dining out, vacations, or shopping. The remaining 20% is directed toward building an emergency fund, investing, or repaying loans.
For example, if you earn ₹50,000 per month, allocate ₹25,000 for needs, ₹15,000 for wants, and ₹10,000 for savings. Tools like budgeting apps or spreadsheets can help track your spending.
This method ensures financial discipline while allowing room for enjoyment and long-term stability.
