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How to Create a Budget That Actually Works in India

 

            Budget planning sheet for saving money in India

Introduction

Budgeting isn’t about restricting yourself. It’s about giving your money a purpose.
The problem is — most people make budgets they can’t follow.

In this post, you’ll learn how to create a practical budget that works for Indian income levels, including salaried professionals and students.


1. Track Your Real Expenses for 30 Days

Before creating any budget, first observe your spending.
Use a diary, Google Sheet, or an app like Walnut or Money Manager.
Categorize every expense: rent, food, recharge, travel, shopping, etc.

“What gets measured gets managed.”


2. Choose a Budgeting Method That Fits You

✅ Modified 50-30-20 Rule (for Indians)

  • 50% Needs – rent, groceries, utilities

  • 30% Wants – shopping, dining out

  • 20% Savings – SIPs, emergency fund

Can’t afford 20% savings? Start with 10% and build up.


3. Automate Key Expenses

Set auto-pay for:

  • Rent

  • SIP or RD

  • Loan EMIs
    This prevents missed payments and reduces mental stress.


4. Limit Cash Withdrawals

Cash disappears fast.
Instead, pay via UPI or card and track digitally.
If using cash, set a weekly cash limit and stick to it.


5. Use Envelopes or Digital Wallets

Separate money for groceries, bills, savings, etc.
Apps like CRED or Paytm can help create mental boundaries between categories.


6. Review Every Week

Set 15 minutes every Sunday to:

  • Review expenses

  • Adjust your budget

  • Reset any overspending

A weekly review keeps you accountable.


7. Give Yourself Freedom (Don’t Over-restrict)

Don’t make your budget so strict that you hate it.
Allow room for joy — just in control. ₹500 for pizza is okay if it’s planned.


Final Thoughts

A working budget is not perfect — it’s flexible, realistic, and keeps you focused on your goals.

“You don’t need more money. You need a better plan for the money you already have.”

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