Your first salary just hit your account. ₹50,000.
Now what?
Most people wing it. They spend on rent, food, maybe save whatever's left (spoiler: there's never anything left), and repeat the cycle every month. Six months later, they're still broke with zero savings.
Here's your exact blueprint to break that cycle - from Day 1.
The 50-30-20 Rule (Indian Reality Version)
The framework is simple:
- 50% on Needs (₹25,000) - Rent, food, utilities, transport
- 30% on Wants (₹15,000) - Entertainment, dining out, hobbies
- 20% on Savings (₹10,000) - Emergency fund, investments, future goals
But here's the reality check: If you're living in a metro, ₹25,000 for needs might not cut it. Adjust the percentages based on your city.
Month 1 Priority: Emergency Fund
Before you even think about investing, you need a safety net. Your emergency fund should cover 3-6 months of expenses.
For a ₹50K salary, that's ₹1.5 lakhs minimum (₹30K expenses × 6 months).
Action: Put that ₹10,000 into a liquid fund or high-interest savings account to stay ahead of inflation. No stocks, no crypto, no "I'll just keep it at home." You need instant access without risk.
The Rest of Your Money
Needs (₹25,000):
- Rent: ₹12,000-15,000 (get a roommate if needed)
- Food: ₹6,000-8,000 (cook at home, pack lunch)
- Transport: ₹2,000-3,000 (public transport > Uber)
- Utilities: ₹1,000-2,000 (electricity, internet, phone)
Wants (₹15,000):
This is YOUR money. Use it guilt-free. Just track it. Apps like Walnut or Money View work great.
Common Mistakes to Avoid
- Buying a bike/car on EMI - You just added a ₹8-10K monthly liability. Not worth it in Month 1.
- Lifestyle inflation - Just because you have money doesn't mean you need the ₹300 coffee every day.
- Ignoring health insurance - Get a ₹5L cover minimum. Your company insurance isn't enough.
Next Steps
By Month 6, you should have:
- ₹60,000 in emergency fund
- Started a SIP in index funds (₹2-3K/month)
- Zero credit card debt
Start simple. Stay consistent. Build from there.
Your future self will thank you.