A Reddit post of a young woman who earns a salary of thirty thousand rupees a month, and is living a comfortable life by balancing her desires and aspirations. The young woman is able to plan for her future
with this modest salary.
CA Nitin Kaushik recently shared the budget mantras of a young girl named Rhea on his X account. Nitin said that the woman was earning a salary of Rs 30,000 per month and had a good lifestyle while saving some money for the future. In the same post, Rhea also shared the 50-25-25 budgeting approach she is following, a variant of the 50:30:20 rule that classifies our needs, wants, and savings.
So how did Rhea plan her budget with the 50:30:20 rule? How did she save money through this rule despite a low salary? Let’s find out through the story shared by the CA.
What Is The 50:30:20 Rule?
50% for Essential Items (Rs 15,000)
Rhea sets aside Rs 15,000 for her essentials- Rs 7,000 for rent, Rs 3,500 for groceries, Rs 2,000 for utilities and subscriptions, Rs 1,500 for travel, and Rs 1,000 for clothing or other basic necessities. These are all essential expenses, and Rhea uses half of her salary for them.
25% for Aspirations (Rs 7,500)
Rhea hasn’t given up on her aspirations despite a low salary. To stay happy, she believes in spending a portion of her income on herself.
So Rhea pays an EMI of Rs 3,000 for her scooter, Rs 1,000 for weekend fun, Rs 2,500 for savings towards one annual trip, and Rs 1,000 for personal growth such as books or courses. She allocates 25% of her income towards her wishes, discretionary spending that enhances her quality of life.
Her current SIP investment could give Rhea an income of around Rs 2.8 lakh in five years.
The budget plan shared by Nitin Kaushik shows that no matter how small your salary is, how you use it matters. Having a budget plan helps manage money wisely.
Adhering to your own financial rule helps create a well-rounded economic strategy. This ensures you meet your needs, enjoy life’s pleasures, and stay prepared for future financial challenges.
