– A Simple Story to Get Your Money in Control
Meet Rohan – The Struggling Saver
Rohan, a 26-year-old software engineer from Pune, had a decent job, earning ₹50,000 per month. But by the 20th of every month, he was broke.
His money seemed to disappear. Sometimes it was ordering too many Zomato meals, sometimes an impulsive gadget purchase during a Flipkart sale. Every month he promised himself he would save – and every month he failed.
Then one evening, while scrolling YouTube, he heard something interesting:
“Use the 50/30/20 rule – and take control of your money.”
📊 What is the 50/30/20 Rule?
The 50/30/20 Rule is a simple way to divide your income:
- 50% for Needs – essentials like rent, groceries, bills
- 30% for Wants – shopping, entertainment, eating out
- 20% for Savings & Debt – investments, savings, loan repayment
🧾 Rohan Tries It
Let’s break down Rohan’s ₹50,000 salary using this rule:
✅ 50% – Needs (₹25,000)
- Rent: ₹10,000
- Groceries: ₹5,000
- Electricity, Wi-Fi, Mobile Bill: ₹2,000
- Transport: ₹2,000
- Health Insurance: ₹1,500
- Other essentials: ₹4,500
🎉 30% – Wants (₹15,000)
- Eating out: ₹3,000
- Netflix, Spotify: ₹500
- Shopping: ₹4,000
- Movies, Trips, etc.: ₹7,500
He realized he was overspending on “wants” – so he cut down.
💰 20% – Savings (₹10,000)
- SIP (Mutual Fund): ₹4,000
- Emergency Fund: ₹3,000
- Loan EMI: ₹3,000
📈 What Changed for Rohan?
After 3 months of using the 50/30/20 rule:
- He had ₹9,000 saved in his emergency fund.
- His spending was under control.
- He didn’t feel guilty spending on fun – because it was already planned.
👨🏫 How You Can Use It
Here’s how you can apply it to your income:
- Calculate your monthly income (after taxes).
- Make 3 columns – Needs, Wants, Savings.
- List down your actual expenses and categorize them.
- Adjust if needed – cut wants, increase savings.
You don’t need to be perfect. Just start.
📝 Final Thoughts
The 50/30/20 rule is not a strict cage – it’s a flexible framework. If your rent is high, you might do 60/20/20. If you’re debt-free, you can even do 50/20/30.
But the goal is simple:
Spend smart. Save smart. Live smart.
Like Rohan, you don’t need a financial degree to manage your money.
Just a rule – and the discipline to follow it.
