How Much of Your Income Should You Save Each Month?

One of the most common money questions people ask is simple yet confusing: How much of my income should I actually save every month?
Some say 10%. Others say 30%. Social media throws around big numbers that feel unrealistic.

At Unicorn Finances, we believe personal finance should be practical, not stressful. As a trusted financial advisor in Pune, we work with working professionals, business owners, and families who want clarity—not complicated formulas.

Let’s break it down in a way that actually works in real life.

The Simple Rule Most Financial Advisors Recommend

A widely accepted and easy-to-follow guideline is the 50-30-20 rule:

50% of your income for needs
(rent, groceries, EMIs, bills, insurance)

30% for wants
(dining out, travel, shopping, subscriptions)

20% for savings and investments

This doesn’t mean everyone must follow it perfectly. But it gives you a clear starting point. As financial advisors in Pune, we’ve seen this rule work well when it’s adjusted to Indian lifestyles and income patterns.

Is Saving 20% Always Possible?

Short answer: not always—and that’s okay.

If you’re early in your career, managing loans, or supporting family, saving 20% may feel tough. In that case, start with 10–15% and increase it gradually.

The key is consistency, not perfection. Even seasoned clients working with a financial advisor in Pune didn’t start with ideal numbers. They built the habit first, then scaled up.

What Should Your Monthly Savings Go Into?

Saving isn’t just about parking money in a bank account. A smart savings plan includes:

Emergency fund (3–6 months of expenses)

Mutual funds (SIP-based investing)

Retirement planning (EPF, NPS, pension plans)

Short-term goals (travel, gadgets, education)

At Unicorn Finances, we help you divide your savings based on your life stage. A fresh graduate and a 40-year-old business owner need very different strategies, which is why working with a financial advisor in Pune makes a real difference.

Why a Fixed Percentage Doesn’t Fit Everyone

Google searches often ask, “Is saving 30% better than 20%?”
The truth is, the right percentage depends on your goals.

Ask yourself:

Do you want to buy a house in the next 5 years?

Are you planning for children’s education?

Do you want early retirement?

A reliable financial advisor in Pune doesn’t just give numbers. They help align your savings with your future plans. That’s exactly how Unicorn Finances approaches financial planning.

A Practical Saving Rule That Actually Works

Here’s a simplified rule we often suggest:

Save first. Spend later.

The moment your salary hits your account:

Automatically move savings into investments

Keep expenses within what remains

This removes temptation and builds discipline. Many clients tell us this one change transformed their finances. It’s advice we consistently share as financial advisors in Pune because it works across income levels.

Common Mistakes People Make While Saving

Even people who save regularly make these mistakes:

Saving without investing (losing value to inflation)

Ignoring insurance and emergency funds

Starting too late

Following advice without personalization

This is where guidance from a professional financial advisor in Pune helps you avoid costly errors and stay on track.

How Unicorn Finances Helps You Save Smarter

At Unicorn Finances, we don’t believe in one-size-fits-all plans. We:

Understand your income and lifestyle

Create realistic saving targets

Build investment plans you can stick to

Review and adjust as your life changes

Our goal as a financial advisor in Pune is to make money decisions simpler, clearer, and stress-free.

Final Thoughts

So, how much should you save each month?

Start with what you can, aim for 20%, and improve over time. The most important step is starting—and starting right.

If you’re unsure how to structure your savings or investments, speaking with a trusted financial advisor in Pune can give you clarity and confidence.

With the right guidance from Unicorn Finances, saving money stops feeling confusing and starts feeling empowering.