Follow the 50:30:20 Rule – A Smart Way to Plan Your Monthly Salary and SIP Investment

The 50:30:20 is a simple budgeting strategy for salaried class people for building wealth .

Under this rule, divide your monthly take-home salary into three parts:

• 50% – Needs: Allocate half your salary towards essential expenses such as house rent, groceries, electricity bills, school fees and EMIs etc.
• 30% – Wants: Use 30% for lifestyle expenses such as shopping, entertainment, dining out, holidays and personal hobbies and also you can donate some portion of your salary in religious organization.
• 20% – Savings & Investments: Invest at least 20% of your salary towards financial goals. You can use this portion to start a monthly SIP in mutual funds, build an emergency fund and plan for retirement.

The following is mantra for your success.

“Spend Wisely Today, Invest Smartly for Tomorrow!”