How to make a monthly budget
A budget is just a plan for this month's money. Start rough, run it for a month, then adjust with real numbers.
- Start from take-home pay.
- Fixed costs first.
- Adjust after one month.
1. Start from take-home pay
Use what actually lands in your account after tax and deductions, not your CTC.
2. List fixed costs
Rent, EMIs, insurance, school fees, phone and internet, subscriptions. These come first because they're not optional this month.
3. Use 50/30/20 as a starting point
A common rule of thumb: about 50% for needs, 30% for wants and 20% for savings and investments. On ₹60,000 take-home that's roughly ₹30,000 needs, ₹18,000 wants and ₹12,000 saved. In big cities rent can push needs above 50%; that's fine, just know where the rest comes from.
4. Save first
Move the savings part at the start of the month, to a goal or an investment, so it isn't what's left over.
5. Run it for a month, then adjust
Track what you spend for one full month. The categories that ran over tell you where to set a category budget next month.
Questions
Is 50/30/20 right for everyone?
No, it's a starting point. High rent or EMIs can change the split. What matters is saving something consistently and knowing where the rest goes.
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