The 50/30/20 Budget Rule

The 50/30/20 rule divides your after-tax income into three buckets. 50% goes to Needs — essentials like rent, groceries, utilities, EMIs. 30% goes to Wants — dining out, OTT, shopping, travel. 20% goes to Savings and Investments — this is non-negotiable. If needs exceed 50%, either reduce costs or increase income. The 20% savings bucket should be automated the moment salary arrives — before you spend anything else.