How the 50/30/20 rule can help you budget your salary

The 50/30/20 rule suggests putting 50% of take-home pay toward needs like rent, groceries and healthcare, 30% toward wants such as dining out and travel, and 20% toward savings and investments. Jyoti Bhandari of Lovak Capital advises classifying EMIs by purpose: a home loan EMI is a need, gadget or travel EMIs are wants, and prepayments count as savings.