The 20 percent guide
Saving 20 percent of take-home salary is a common benchmark. On ₹50,000, it is ₹10,000 a month. On ₹1,00,000, it is ₹20,000. It is a starting point you can aim for and adjust.
When to save less at first
If you have high-interest debt, or you have just started a job, you might save less at first and focus on paying off debt and building a small emergency fund. Increase the saving amount as your income or expenses change.
Save first, then spend
Move the savings amount out of your account on salary day, before spending. What is left is what you can spend that month. It is easier than trying to save what is left at the end.
- Start from take-home pay
- Around 20 percent is a common goal
- Pay off high-interest debt first
- Save on salary day, before you spend
Questions people ask
Should I save before paying bills?
Plan bills first, then save. A savings amount you cannot keep is not useful. Set a number you can keep every month.
Where should savings go?
An emergency fund in a savings account is a common first step. For investments, speak to a financial advisor for personal advice.
How do I track my savings?
Record the savings amount each month in budgetbaba as its own line, so it is visible in your plan.