The 50/30/20 Rule: A Simple Money Method Every Indian Woman Should Know

Ever wondered what is 50 30 20 rule? Why is everybody so freaked out about this? Here’s how I discovered it.
When I got my first job in Mumbai, budgeting felt like juggling too many lemons. Rent, groceries, chai with friends, and somehow, savings? It was all over the place.

I remember standing at an ATM in Andheri with only ₹236 in my account and five days till payday. That’s when it hit me – I had no system. I wasn’t spending recklessly, but I wasn’t spending wisely either. I needed structure.

That’s when I stumbled upon the 50 30 20 rule. Simple, clear, and shockingly doable.

If you’ve ever felt like your money vanishes too quickly, this one’s for you.

What is the 50 30 20 Rule?

It’s a basic framework that gives your income direction without tracking every rupee.

• 50% Needs: Rent, groceries, bills, essential travel.

• 30% Wants: Netflix, eating out, shopping sprees.

• 20% Savings/Investments: Emergency fund, SIPs, insurance.

Why the 50 30 20 Rule Works for Indian Women

Think of it as your personal thali of budgeting. Just like a good meal needs balance; rice, sabzi, dal, maybe a sweet;  your money also needs a thoughtful split. The 50 30 20 rule is that recipe.

Most of us weren’t taught money management growing up. We’re great at stretching a budget but not always confident about long-term planning.

This rule gives us:

• Clarity: You know exactly where each rupee is meant to go.

• Control: No more guilt when you order dessert.

• Confidence: You’re finally saving without overthinking.

When I started using it, I realised my weekend spends were eating into my savings. Realigning just 5% helped me save for a solo trip to Udaipur last year. And if you’re exploring where to put that 20% savings, I’ve shared my top picks for the best SIPs for Indian women here.

Quick Example (Assume Monthly Income: ₹40,000)

Even with a modest income, this rule makes room for fun and financial growth.

One of my clients, Riya, a graphic designer from Pune, started using this rule with her ₹35,000 salary. Within six months, she not only built an emergency fund but also started investing in mutual funds. “I finally feel in control,” she told me. And that’s the goal.

FAQs About the 50 30 20 Rule

1. Can I use a 50 30 20 rule calculator?

Yes! Try this free budget calculator from Moneycontrol to break it down automatically.

2. What if I live with family and don’t pay rent?

Your ‘Needs’ portion may be lower. Redirect the extra into savings or even start investing small via SIPs.

3. Is this the same as the 50 30 20 investing rule?

Not exactly. The investing rule often tweaks the 20% to focus more on market-linked instruments. You can adjust based on your comfort.

4. Can I use this rule if I freelance or have variable income?

Absolutely. Use your average monthly income and tweak percentages if needed. The idea is balance, not rigidity.

Final Thought: Start Small, Stick With It

You don’t need to follow the 50 30 20 savings rule perfectly. Even using it as a guideline gives you a solid base.

When I taught this to my cousin who just started working in Pune, she texted a month later: “I don’t feel broke anymore, didi!”

That’s the power of simple structure.

If you’re just starting out or feel lost with money, this rule is a gentle first step.

Try It Today

Use the 50 30 20 budget rule this month. Track your spending with a pen and notebook or Google Sheets. Let me know how it feels.

You’ve got this!

Pranjali Ghosh

Meet Pranjali Ghosh — a financial consultant based in Mumbai with an MBA in finance and a mission to help Indian women build clarity and confidence around money. From government schemes to mutual funds and everyday savings, she breaks down complex topics in simple, relatable ways. As a proud WTribe member, Pranjali shares what she’s learned — not from textbooks, but from real conversations with women who want to take charge of their financial lives.