How to budget your salary in India
A simple plan for every payday: pay what is fixed, save before you spend, and know what is left for each day until the next salary.
How much of my salary should go where?
Start from take-home pay — what actually reaches your account after tax and PF. Then split it three ways: fixed costs you must pay (rent, EMIs, bills, groceries), saving and investing you choose to do, and what is left to spend freely.
A popular rule of thumb is 50/30/20: about 50% on needs, 30% on wants and 20% saved. It is a starting point, not a law — in big cities rent and EMIs often take more than half, and that is fine as long as saving does not fall to zero.
Try your own numbers in the salary budget calculator.
The 50/30/20 split, worked out for common salaries
The table applies the rule to different take-home amounts. The emergency fund is six months of the “needs” column; the last column is what the 20% could grow to as a monthly SIP for 10 years at an assumed 12% a year (not guaranteed).
| Take-home / month | Needs (50%) | Wants (30%) | Save (20%) | 6-month emergency fund | 20% as a 10-yr SIP at 12% |
|---|---|---|---|---|---|
| ₹30,000 | ₹15,000 | ₹9,000 | ₹6,000 | ₹90,000 | ₹13,94,034 |
| ₹40,000 | ₹20,000 | ₹12,000 | ₹8,000 | ₹1,20,000 | ₹18,58,713 |
| ₹50,000 | ₹25,000 | ₹15,000 | ₹10,000 | ₹1,50,000 | ₹23,23,391 |
| ₹60,000 | ₹30,000 | ₹18,000 | ₹12,000 | ₹1,80,000 | ₹27,88,069 |
| ₹75,000 | ₹37,500 | ₹22,500 | ₹15,000 | ₹2,25,000 | ₹34,85,086 |
| ₹1,00,000 | ₹50,000 | ₹30,000 | ₹20,000 | ₹3,00,000 | ₹46,46,782 |
| ₹1,50,000 | ₹75,000 | ₹45,000 | ₹30,000 | ₹4,50,000 | ₹69,70,172 |
| ₹2,00,000 | ₹1,00,000 | ₹60,000 | ₹40,000 | ₹6,00,000 | ₹92,93,563 |
The wants column is your monthly spending money: on ₹60,000 that is ₹18,000, about ₹600 a day. The Safe to Spend calculator shows the same idea for the days left until your next salary.
A salary-day routine that takes 10 minutes
- Salary arrives → pay or set aside rent, EMIs and bills due this month.
- Move your saving out first: SIPs dated a day or two after salary day work well.
- Top up the emergency fund until it covers a few months of needs.
- Whatever is left is your spending money until the next salary — divide it by the days to payday.
What if fixed costs take more than half?
Then the 30% for wants has to shrink before saving does. Check which fixed costs can come down (a cheaper plan, a refinance), avoid new EMIs until the ratio improves, and keep saving something every month, even if it is small.
A realistic saving rate grows with every raise — a step-up SIP does that automatically.
Tell Spendly your salary and pay day: it sets aside bills and EMIs due before then and shows what is safe to spend each day.
Plan my salary →Questions
How much should I save from a ₹50,000 salary?
The 50/30/20 rule suggests about ₹10,000 a month. If rent and EMIs take more than ₹25,000, start lower and increase it with each raise.
Is 50/30/20 realistic in India?
For many people in big cities, needs take more than 50%. Treat the rule as a starting point and protect the saving share first.
Should I budget on CTC or take-home?
On take-home — the amount that actually reaches your bank each month.
How does Spendly help with a salary budget?
Tell Spendly your salary and pay day: it shows when the salary is expected, sets aside bills and EMIs due before then, and shows what is safe to spend each day.