“Mera paisa kaha karcha hota hai mereko samaj mein hi nahi aata”

If you relate to the above line then thank god you found this blog, We are going to give you a great hack to managing your money monthly which will help you increase your bank balance… Woohoo, sounds interesting!

What is the problem right now?

Most of us when we get our salary, we start spending and desiring the things that we want. When we get our first salary, we feel superior because we have our own earned money to spend, we can buy whatever we want for now.

The problem is if we were taught in school or B-School on what to do with our first paycheque, we would know its time to start planning, Setting financial goals and start investing.

However, if you have decided to do it now, its ok, Better late then never
So let’s read this 50-30-20 hack to understand how you can start managing your monthly budgets and investment.

The 50-30-20 Rule



One must divide their monthly income in the following ratio

50% – Needs
30% – Wants
20% – Savings

50% – Needs – Allocate 50% of your salary to groceries, paying rent, regular bills

30% – Wants – Spend this money on entertainment, eating outs watching movies etc.

20% – Savings – You need to straight away save 20% of your monthly salary and invest that money.

If your salary is let us say INR 50,000 then

INR 25,000 is for your needs
INR 15,000 is for your wants
INR 10,000 should be your savings.

The savings ratio should increase as your salary increased and your goal should be to take this ratio to 20-20-60 20% for your needs, 20% for wants and save 60% of your salary and trust me you will retire rich.

This is no way compromising your lifestyle or wants, it’s just spending in accordance with your salary.

You can start using these savings to secure and invest your future and become wealthy in the following order

Save Emergency funds
Buy a Medical Insurance
Buy adequate Insurances
Use for Loan Repayment
Invest in Mutual Funds
Invest in Stocks

Start practising this rule and you shall see progress. Comment if you have any questions and need help