Author
LoansJagat Team
Read Time
4 Min
19 Jun 2025
Why does saving money feel so tough, even when earning well? You plan, you save a little, but then something unexpected shows up and ruins the whole thing. If this sounds familiar, you’re not alone. Most people don't struggle with how much they earn. They struggle with not having clear financial goals.
Earning is easy. Managing is where the game begins.
A recent survey by 1 Finance revealed that 67% of urban Indians saved over 20% of their income in 2024, but only 30% achieved all their financial goals. This gap shows the importance of saving and aligning savings with well-defined objectives.
Let’s say you get ₹60,000 a month. Now what? You pay rent, eat, and maybe spend on clothes or Netflix. But where’s the plan?
Budgeting without a goal is like catching water with a net. You try, but everything slips.
People often focus on cutting costs, and that’s fine. But cutting without direction is like running without a map. You’ll get tired, not results.
A financial goal gives you purpose. You now have something to aim for. Whether you're buying a car, saving for your child’s college, or retiring early, goals tell your money where to go.
Budget Type | What It Does | Long-Term Result |
No Goal Budgeting | Covers bills only | No savings, more stress |
Goal-Based Budgeting | Directs money with intention | Wealth building, peace |
So before jumping into expense tracking or spreadsheets, ask one thing: What am I saving for?
And make that answer loud. Write it, stick it, repeat it.
You’ve probably heard of SMART goals: Specific, Measurable, Achievable, Relevant, and Time-bound. But how do they apply to someone living in Mumbai or Chennai, managing rent and EMIs and still dreaming of buying a house?
SMART Factor | What It Means | Indian Example |
Specific | Clear, not vague | Save for ₹10,00,000 home down payment |
Measurable | Can you count it? | Target is ₹10,00,000, not “some amount” |
Achievable | Possible in your income range | Can save ₹15,000/month from salary |
Relevant | Matches your life plans | Renting is too costly; a home makes sense |
Time-Bound | Has a deadline | Reach the goal in 5 years |
Okay. You have your goal. Now, how do you reach it without giving up your lifestyle?
One powerful method is the 50/30/20 rule. It's old, but it still works like magic if used right.
Here’s how it fits into Indian salary systems:
Income per Month | Needs (50%) | Wants (30%) | Savings/Goals (20%) |
₹50,000 | ₹25,000 | ₹15,000 | ₹10,000 |
₹80,000 | ₹40,000 | ₹24,000 | ₹16,000 |
This rule gives you balance. You live well today, but also build for tomorrow.
But let’s be honest—fixed rules don't always work. That’s where the “Pay Yourself First” method helps. It's simple:
If you earn ₹70,000/month, put ₹15,000 into SIP or PPF on Day 1. What’s left is what you live on. This forces discipline. It's uncomfortable at first. But over time, it’s your money muscle.
Assign every rupee a job.
Zero left. No guilt spending. No surprise expenses.
It’s easy to say “have goals.” But what goals make sense for Indians today?
Let’s break down 3 realistic ones with numbers:
SIP: ₹7,500/month
Goal | Time Frame | Target (₹) | SIP Needed |
Emergency Fund | 1 year | 2,10,000 | 17,500 |
Retirement Corpus | 25 years | 1,00,00,000 | 4,000 |
Child's Education | 15 years | 25,00,000 | 7,500 |
Planning like this removes all money stress. Why? Because everything has a name and a timeline.
Money is not about maths. It’s about behaviour. You don’t need a finance degree. You just need structure. Everything changes once you know and connect your goals with a daily plan. Start today. Pick one goal. One number. One habit.
That’s how wealth begins in Indian homes.
1. What’s the first step to start budgeting in India?
Start by listing your monthly income and fixed expenses. Then create a goal list. Divide money based on 50/30/20 or your method. Begin saving from month one—even if it's just ₹500.
2. How do I decide between SIPs and fixed deposits?
If your goal is long-term (5+ years), SIPs in mutual funds are better. For short-term (1–2 years), FDs are safer. Always match investment type with goal time.
3. Can I budget if I earn less than ₹30,000/month?
Yes. Start small. Even saving ₹500/month builds a habit. Focus more on controlling spending. Use “Pay Yourself First” even if it’s 5%.
4. What tools are best for Indian budgeting?
Google Sheets or Excel works well. You can also try apps like Walnut or Moneyfy, but make sure they support rupees and don’t push investments.
5. How do I stick to my budget every month?
Make it realistic. Don’t cut all fun. Keep some money aside for food, shopping, and movies. Reward yourself for hitting savings goals. Discipline without punishment lasts longer.
About the Author
LoansJagat Team
We are a team of writers, editors, and proofreaders with 15+ years of experience in the finance field. We are your personal finance gurus! But, we will explain everything in simplified language. Our aim is to make personal and business finance easier for you. While we help you upgrade your financial knowledge, why don't you read some of our blogs?
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