In bustling cities like Bengaluru, with rents and living costs climbing ever higher, budgeting isn’t just smart—it’s necessary. A viral story on Reddit highlighted a 22-year-old engineer managing to live comfortably on ₹20,000/month in Bengaluru, using sensible allocation and clever hacks like room sharing, public transport, and DIY meals.

His expense breakdown? ₹8,000 on food, ₹9,000 on rent, ₹2,000 on travel, and ₹2,000 for essentials. While he chose a no-frills lifestyle, his monthly discipline and sacrifices resonated with Indians across income brackets facing city inflation and stagnant wages.

---

Understanding the Buckets: Indian Examples

50% for Needs

These include:

• Rent or home loan EMIs
• Groceries and daily essentials
• Utility bills (electricity, water, internet)
• Health and term insurance premiums
• School/college fees for kids
• Minimum loan repayments

A practical example: If someone’s after-tax income is ₹60,000, then needs get ₹30,000/month.

30% for Wants

Think of:

• Eating out and takeaways
• Movie nights, streaming subscriptions
• Short trips, OTT platforms
• Shopping (clothes, electronics, gifts)
• Hobbies and personal upgrades

For the same ₹60,000 income, wants get ₹18,000.

20% for Savings

Includes:

• SIPs in mutual funds
• Recurring deposits or FDs
• Emergency fund for medical or job loss
• Retirement schemes (EPF, PPF)
• Insurance-linked investments

For ₹60,000, this equals ₹12,000 per month.

---

Detailed Table: 50/30/20 Rule Example

Category	Monthly Budget (₹60,000 income)	Typical Expenses (India)
Needs (50%)	₹30,000	Rent, groceries, bills, insurance
Wants (30%)	₹18,000	Dining, travel, shopping
Savings (20%)	₹12,000	SIP, RD/FD, emergency fund

---

Step-by-Step Guide to Applying This Rule

1. Calculate after-tax income: Check recent payslips or bank deposits.

2. List monthly expenses: Sort items into needs, wants, and savings.

3. Set thresholds: Use the percentages (50-30-20) to fix category limits.

4. Evaluate and adjust: Use mobile apps or Excel to track. Cut excesses (say, overspending on OTT subscriptions or impulse buys).

5. Automate: Arrange for automatic investment deductions and bill payments.

---

Real-life Story: Budgeting as a Bengaluru Graduate

Six months ago, Adarsh moved to Bengaluru with just ₹20,000/month to spare. Splitting rent with friends, taking Rapido rides instead of buying a car, and opting for home-cooked meals helped him make ends meet, leaving a bit for savings.

He skipped costly weekend outings, lived within his means, and posted his expense story online. The post drew responses from others facing even higher expenses—and sparked a conversation about priorities and life choices for young Indians in fast-changing cities. Some advised spending more for joy and personal growth in one’s 20s; others shared their own struggles or hacks.

This is budgeting in action, Indian style—practical, adaptable, and sometimes, a little bit philosophical about what truly counts.

---

Benefits of 50/30/20 Rule (for Indian Families)

• Promotes discipline: Fixed percentages check impulsive spending, especially for newly working professionals.
• Simple and flexible: No complex math, just percentage allocation—easy with any income.
• Encourages savings: The 20% savings bucket ensures a buffer and long-term planning.
• Helps identify waste: Regular tracking highlights recurring unnecessary expenses.

---

FAQs

Q1: What counts as a “want” versus a “need”?

A “need” enables living and earning (housing, food, bills, insurance, EMIs). A “want” enhances comfort but isn’t essential (dining, movies, gadgets, gym memberships).

Q2: How to save if income is low?

Focus on percentages, not amounts. Saving even ₹500/month consistently adds up. Try automating transfers right after pay-day to avoid temptation.

Q3: Can I include loan repayments?

Yes, minimum repayments go into the “needs” bucket. Any extra repayments could go in “savings”.

Q4: Should I adjust the percentages?

Absolutely. Life situations differ—families in Tier-2 cities may need 60% for needs, bachelors might manage with 40%. The key is regular review and adjustments.

Q5: External tools and calculators?

Try budget calculators at Groww, ICICI Prudential, YES Bank, NerdWallet, and Reddit India Personal Finance.

---

Useful External Resources

• ICICI Prudential 50/30/20 Guideiciciprulife
• Groww Budget Rule Articlegroww
• Reddit India Personal Finance Forumreddit
• NerdWallet Calculatornerdwallet
• YES Bank Budgeting Tipsyesbank

---

Short Story With a Personal Touch

Meet Priya, a 32-year-old doctor in Chennai. She grew up in a house where budgeting was unheard of—every festival, every family function meant spending all her salary. She started using the 50/30/20 rule after her first year of earning, realizing her wardrobe was full but her savings nearly empty.

Within a year, Priya tracked her expenses, distinguished “wants” from “needs,” and automated ₹15,000 into mutual funds and FDs monthly. She ended up saving money for a Europe trip, built a modest emergency fund, and discovered budgeting wasn’t about denying herself, but choosing what truly mattered.

Her tip: “Keep your budget flexible, but don’t let your savings slide. Small, steady progress gave me confidence—and freedom!”

---

Final Advice

Budgeting with the 50/30/20 rule offers Indians a realistic, practical way to balance daily expenses, enjoy life, and prepare for tomorrow. Whether you’re in metro hustle, small-town routine, or starting a family, smart budgeting can support not just your wallet but your peace of mind.