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Planning

50-30-20 Monthly Salary Budget Allocator

Verified Indian financial mathematics, statutory regulations, and step-by-step actionable breakdowns.

SIP (Systematic Investment Plan)

Monthly compounding in Equity & Hybrid Mutual Funds

Monthly Investment Amount₹10,000
Expected Annual Returns (CAGR)12.0%
Time Horizon15 Years

Invested Amount

₹18,00,000

Wealth Gained

₹32,45,760

Total Corpus

₹50,45,760

Mathematical Formula & Calculation Engine

Allocates monthly take-home salary into Needs (50%), Wants (30%), and Savings/Investments (20%).

Needs = Salary × 0.50 | Wants = Salary × 0.30 | Investments = Salary × 0.20

Why Use the 50-30-20 Budget?

Prevents lifestyle inflation as salary increases
Guarantees that at least 20% of salary is saved on day 1
Removes guilt from spending 30% on leisure and hobbies

50-30-20 Budget FAQs

In expensive metro cities, it is common for Needs to reach 60%. Compensate by reducing Wants to 20% while strictly defending your 20% minimum investment allocation.

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