Learn the simplest budgeting method — allocate needs, wants, and savings automatically.
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Divide after-tax income: 50% Needs (rent, food, EMIs), 30% Wants (dining, entertainment), 20% Savings (SIPs, FDs, emergency fund).
Salary ₹80,000: Needs ₹40,000, Wants ₹24,000, Savings ₹16,000. Simple and effective.
High-cost cities: try 60/20/20. Aggressive savers: 50/20/30. It is a starting point, not rigid.
General educational guidance on budgeting.
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All calculations use standard financial formulas. SIP returns use compound interest formula: FV = PMT × [((1+r)^n - 1) / r]. EMI uses: EMI = P × r × (1+r)^n / [(1+r)^n - 1]. Tax calculations follow Income Tax Act provisions for the current assessment year. Insurance premiums are indicative market averages.
Sources: RBI, SEBI, Income Tax Department of India, CIBIL, IRDA, LIC of India. Data verified as of Aug 2026.
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Disclaimer: This website provides general educational information only and does not provide personalized investment advice or recommendations. Financial decisions should be made after considering individual circumstances and consulting a qualified professional where appropriate. Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. Past performance does not guarantee future results.