Finance Rule #02

The 50-30-20 Rule

Allocate 50% of your income to needs, 30% to wants, and 20% to savings and investments.

"Simple. Powerful. Almost nobody follows it."

The 50-30-20 rule gives you a clear framework without micromanaging every rupee. Needs are things you cannot avoid — rent, groceries, utilities, EMIs. Wants are choices — dining out, Netflix, vacations. The 20% to savings is non-negotiable.

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