Financial Planning Checklist for Every Indian Earning Under ₹50K/month

Your Step-by-Step Guide to Save, Spend, and Grow Wisely in 2025

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🧠 Introduction: Why You Need a Plan — Even If You Earn Less Than ₹50K

In India, ₹50,000 per month is considered a decent income — but with rising living costs, rent, EMIs, and emergencies, even this amount can feel tight.

Most people assume that financial planning is only for rich people, but the truth is:

💡 “The less you earn, the more carefully you must plan.”

If you're earning less than ₹50,000/month, this blog is your personal checklist — built for salaried professionals, freelancers, or even small business owners.

Let’s break it down step-by-step. No jargon. No complicated formulas. Just actionable, realistic advice.

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✅ Step 1: Know Exactly Where Your Money Is Going

You can't manage what you don’t track. Start by asking:

• What are your fixed expenses (rent, bills, EMIs)?

• What are your variable expenses (food, travel, subscriptions)?

• What are your avoidable expenses (online shopping, eating out)?

🔧 Tools You Can Use:

• Walnut App (tracks SMS-based spends)

• Google Sheets

• Tally note on your phone

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✅ Step 2: Follow the 50/30/20 Rule (Adapted for India)

This golden rule helps in dividing your income wisely.

Category	% of Income	Example
Needs (Essentials)	50%	Rent, groceries, transport
Wants (Lifestyle)	30%	OTT, eating out, phone EMI
Savings/Investments	20%	SIP, RD, insurance, FD

If 20% savings feels hard right now, start with 10%, and build up. The key is: start saving something.

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✅ Step 3: Build an Emergency Fund (First Priority)

Life throws surprises — job loss, hospital bills, family emergencies.
Your first goal should be to build 3-6 months of expenses as a safety net.

💼 Where to park it?

• High-interest savings account

• Liquid mutual fund

• Recurring deposit

Start with ₹500/month if that’s all you can manage. It adds up!

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✅ Step 4: Get Basic Health Insurance (Even if Your Company Provides One)

If you're depending only on your office health cover — stop.

• Get a personal policy of at least ₹3–5 lakh.

• Use platforms like PolicyBazaar, Turtlemint, or Digit to compare.

This protects you from financial shocks that can wipe out your savings in a day.

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✅ Step 5: Start a SIP (Even ₹500/month Works)

Even if you're earning ₹20,000–₹50,000/month, you can begin your investment journey.

📈 Where to invest?

• Large-cap index funds (e.g. Nifty 50 funds)

• ELSS (Tax saving mutual funds) if you want tax benefit

Use apps like:

• Groww

• Zerodha Coin

• ET Money

💡 Start early, stay consistent. ₹500/month for 25 years = ₹25+ Lakhs (at 12% CAGR).

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✅ Step 6: Avoid the EMI Trap

Zero-cost EMI offers may look tempting, but they’re often lifestyle traps.

Only take EMIs if:

• The product is essential (like a laptop for work)

• EMI <10% of your monthly income

• Tenure is short (<12 months)

For everything else — save and buy. You’ll thank yourself later.

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✅ Step 7: Reduce High-Interest Debt First

If you have:

• Credit card outstanding

• Personal loans with 15%+ interest

• BNPL (Buy Now Pay Later) dues

🚫 Focus on paying these off before anything else. These debts eat your wealth quietly.

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✅ Step 8: Set Short-Term + Long-Term Goals

Goals give direction to your finances. Start small:

🎯 Short-Term (0–3 years):

• Emergency fund

• Buying a smartphone

• Paying off debt

🎯 Long-Term (5+ years):

• Marriage fund

• Buying a house

• Retirement planning

Once you have clarity, you can save/invest accordingly.

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✅ Step 9: Understand Tax Basics

If your annual income is above ₹5L, you must file ITR.
Use these tools to save tax:

• Section 80C: Invest in ELSS, PPF, 5-year FD

• Section 80D: Claim on health insurance premiums

• Section 10: HRA exemptions (if you’re renting)

You can file ITR using:

• ClearTax

• TaxBuddy

• CA-assisted services

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✅ Step 10: Review Your Finances Every 3 Months

Review your:

• Expenses

• Goals

• Savings rate

• Investments

Ask yourself:

• Am I spending too much on non-essentials?

• Can I increase my SIP by ₹500 more?

• Do I need to switch to a cheaper plan (mobile, OTT)?

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🧠 Pro Tips Just for You

• 🎁 Use cashback apps (CRED, MagicPin) for utility payments

• 🛒 Shop online with price tracking tools (BuyHatke, Flipkart Deals)

• 🚗 Car/bike loans? Try to prepay or refinance after 1–2 years

• 🧾 Keep digital receipts of all expenses for tax time

• 💼 Create a separate savings account for goal-based savings

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🙌 Final Thoughts: You Don't Need to Be Rich to Plan

"Financial planning is not about how much you earn, it’s about how well you manage what you earn."

If you're making under ₹50,000/month, you're not limited — you're just early in your journey. And starting now gives you the most valuable asset: Time.

Start small. Be consistent. Track everything.
In 5–10 years, you’ll be ahead of most people who earn double but plan zero.