The Easiest Way to Budget

Budgeting doesn’t have to mean tracking every single penny on a complicated spreadsheet. The 50/30/20 Rule is a popular and straightforward budgeting framework popularized by Senator Elizabeth Warren. It breaks your post-tax income into three simple categories.

The Breakdown

50% for Needs

Half of your income should cover your absolute essentials. These are the bills you must pay to survive:

• Rent or Home Loan EMI
• Groceries
• Utilities (electricity, water, internet)
• Basic insurance premiums

30% for Wants

This category is for your lifestyle and entertainment:

• Dining out
• Hobbies and subscriptions (Netflix, gym)
• Vacations
• Upgraded tech or clothing

20% for Savings & Debt

The final 20% is dedicated to your financial future:

• Paying off high-interest debt
• Building an emergency fund
• SIPs and long-term investments

How to Get Started

If your current spending doesn’t match this ratio, don’t panic. Use the Finara Money App to track your expenses for one month to see where your money is going. Slowly reduce your “Wants” until you hit the magic 20% savings rate!