The Ideal Savings Rate From Your Salary
The 50/30/20 Rule
50% Needs: Rent, groceries, bills, EMIs, insurance premiums.
30% Wants: Dining out, shopping, entertainment, vacations.
20% Savings: SIPs, PPF, emergency fund, extra investments.
Savings By Salary Level
| Salary | 20% Savings | Where to Invest |
|---|---|---|
| ₹25,000 | ₹5,000 | ₹3K SIP + ₹2K emergency fund |
| ₹50,000 | ₹10,000 | ₹6K SIP + ₹2K PPF + ₹2K emergency |
| ₹75,000 | ₹15,000 | ₹8K SIP + ₹3K PPF + ₹2K NPS + ₹2K emergency |
| ₹1,00,000 | ₹20,000 | ₹10K SIP + ₹4K PPF + ₹3K NPS + ₹3K emergency |
The 20% rule is minimum. If possible, save 30-40% of your salary in your 20s when expenses are lower.
Read more: 50/30/20 Budget Rule Guide