Life With Sathyanand

Managing monthly expenses can feel like a never-ending puzzle, especially for Indian families trying to balance needs, goals, and surprises. I’ve been there—and after trial and error, I found a system that works. In this blog, I’ll share my simple but powerful monthly budgeting plan. It’s not perfect, but it’s practical, real, and built for Indian middle-class life.

🧾 Step 1: Know Your Monthly Income (Exact Amount, Not Just Approx)

Many people say, “I get around ₹40,000” or “About ₹70,000.” But budgeting starts with exact numbers.

✅ What to Do:  

Write down your exact monthly income after deductions. If your income varies (freelancers, commission-based), take an average from the last 3–6 months.

📝 Example:  

My salary after PF, insurance, etc. is ₹52,800.

🧮 Step 2: Divide Your Budget – 50:30:20 Rule (Indian Version)

The Western 50:30:20 rule breaks down into:

- 50% Needs

- 30% Wants

- 20% Savings/Debt Repayment

But for Indian families, I follow a slight modification:

- 55% Needs (Rent, EMI, Groceries, School Fees)

- 15% Wants (Dining, OTT, Clothing)

- 30% Savings/Investments (SIP, RD, LIC, Emergency Fund)

📝 Example on ₹52,800:  

- ₹29,000 for needs  

- ₹7,900 for wants  

- ₹15,900 for savings

🧺 Step 3: Track Essentials First

Create a list of non-negotiable expenses:

| Category               | Monthly Cost |

| House Rent           | ₹10,000 |

| Groceries               | ₹6,000 |

| Electricity + Gas   | ₹2,000 |

| School Fees            | ₹5,000 |

| Mobile + Internet | ₹1,500 |

| Medical + Others  | ₹4,500 |

✍️ Tip: If you're a joint family, consider pooling for groceries and utilities.

💸 Step 4: Automate Your Savings

Before spending on anything else, pay yourself first. I use the following:

- SIP: ₹5,000/month  

- Emergency Fund (in Liquid FD): ₹3,000  

- Recurring Deposit: ₹3,000  

- Insurance/LIC: ₹4,900

🏦 I’ve automated all of this to happen within 2 days of salary credit.

🎉 Step 5: Control Wants Without Feeling Deprived

We all love:

- Eating out

- Watching movies

- Buying something

I give myself a ₹2,000–₹3,000 guilt-free budget monthly. I use UPI apps with budgets set.

📱 Bonus Tip: Use apps like Walnut, ET Money, or Spendy to track expenses.

🪙 Step 6: Track Every Rupee for 3 Months.

The first 3 months are key. You’ll realize:

- Where your money leaks

- Which spending patterns are unnecessary

- How much buffer you really need

🟢 I maintain a Google Sheet and update it daily in 3–5 minutes.  

Once it becomes a habit, it’s life-changing.

🏠 Real-Life Tweaks from My Family:

✅ We shifted from LPG to induction stove to save ₹500/month  

✅ We reduced OTT apps (kept only one plan)  

✅ I carry lunch to work at least 4 days/week  

✅ Stopped random Amazon buying after creating a 48-hour wait rule.

💡 These small things save ₹3,000–₹5,000 monthly without lowering happiness.

📌 Final Words: Budgeting is Self-Respect

Budgeting is not restriction—it’s responsibility.  

It’s saying: "I respect my income, and I want to grow with it."

No matter how much you earn, if you’re intentional with it, you’ll sleep better and live better.

If you liked this budgeting method, try it for one month. Your bank account (and peace of mind) will thank you.

- Sathyanand Rajendran