Money Tips: Try this rule as soon as your salary is credited, it is easier than 50-30-20..

Usually, it is said to follow the rule of 50-30-20 for salary management. But as good as the rule of 50-30-20 sounds, it is equally difficult in real life. For many people whose salary is not very high, it becomes very difficult to save 20% every month.

In such a situation, this rule cannot be followed, and by the end of the month, all the calculations get spoiled, and the hands are left empty in the name of savings. If the same happens to you, then today we are going to tell you about a new and practical formula for making a budget, which is easy and really works. This rule is - 15-65-20. Follow this rule as soon as the salary is credited today, on 1 September. Know about it here.

Why does the rule of 50-30-20 fail?

This rule often fails because:

Savings last: This rule says to save 20% after all expenses. But the reality is that nothing is left by the end of the month.

Impractical percentage: For people living in big cities, essential expenses like house rent, children's fees, and EMIs take up 60-70% of the salary. In such a situation, it seems impossible to meet the needs of 50%.

The hassle of constant tracking: It is very tiring to divide every expense into 'needs' and 'hobbies'.

This is the new 15-65-20 rule: savings first, expenses later.

The biggest and most powerful principle of this rule is - 'savings first'. It just slightly reverses the 50-30-20 rule, making it much more effective.

How does this rule work-

15% (Savings and Investment): As soon as you get your salary, before spending anything else, first set aside 15% of your salary for savings or investment (SIP, PPF, RD). This is your first EMI for your future.

65% (Needs): Now spend 65% of the money that is left on your essential things. This includes your house rent, loan EMI, ration, electricity-water bills, children's fees, and transport expenses.

20% (Wants): And finally, you can spend the remaining 20% on your hobbies, without any tension or guilt. This includes things like eating out, traveling, shopping, and watching movies.

Understand with an example

Suppose your monthly salary is Rs 50,000.

15% (Savings): As soon as you receive your salary, set ₹7,500 (15% of ₹50,000) to auto-debit in SIP or RD. Now forget about this money.

65% (Needs): Now you have ₹32,500 (65% of ₹50,000). Pay all your important bills and EMIs with this money.

20% (Hobbies): And finally, you are left with ₹10,000 (20% of ₹50,000). This money is your 'fun money'. You can spend it as per your wish, without thinking, because your savings have already been made.

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