How to Budget on a ₹25,000 Salary (Yes, It’s Possible!)
Earning ₹25,000 a month can feel like trying to stretch a rubber band that’s already snapping—but guess what? With the right budgeting approach, you can save, spend smartly, and still enjoy life (occasional pani puri included).
Here’s a step-by-step budget plan designed for real people, with real expenses, and a not-so-huge salary.
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Step 1: Understand Where Your Money's Going
Before you fix anything, you need to know where the leaks are.
Track your spending for 1 month—apps like Walnut, Money Manager, or even a simple Google Sheet can help.
You might be shocked to see:
₹2,000 on Swiggy?
₹1,200 on recharge packs and subscriptions?
₹3,500 on “I don’t even remember” stuff?</p>
Awareness is step one.
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Step 2: Use the 50-30-20 Rule (with a twist)
On a ₹25K income, this popular rule needs tweaking. Here's a realistic budget for low-to-mid income:
1. Needs – 60% (₹15,000)
This includes:
Rent: ₹6,000–₹7,000 (try to stay within this)
Groceries: ₹2,000
Utilities, phone, internet: ₹1,000
Transport: ₹2,000
Minimum loan/EMI (if any): ₹3,000
Tip: Share rent with roommates or live with family to save big here.
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2. Wants – 20% (₹5,000)
You don’t have to be a monk. This covers:
Eating out
OTT subscriptions
Shopping, entertainment
Small travel plans
Hack: Set a weekly fun-money limit (e.g., ₹1,200/week). It helps avoid mid-month regrets.
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3. Savings – 20% (₹5,000)
Start with what you can.
Emergency fund: ₹1,000
SIPs (mutual funds): ₹2,000
Recurring deposit / digital gold / savings: ₹2,000
Even ₹500/month in investments adds up over time. Start small, stay consistent.
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Step 3: Automate Everything
The moment your salary drops:
Send money to your savings account or SIP
Pay fixed bills early
Leave only your “spendable” amount in your main account
This prevents accidental overspending.
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Step 4: Cut the Hidden Costs
Some silent money-eaters include:
Auto-renewing subscriptions
Impulse online shopping
Daily food delivery
Frequent weekend hangouts
Fix:
Audit your apps monthly
Cook at least 3–4 times a week
Plan “chill at home” weekends
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Step 5: Upskill & Side Hustle (Optional, but Golden)
If ₹25K feels too tight, work on increasing your income over time.
Free/low-cost upskilling sites:
Coursera (free courses with certificates)
YouTube tutorials
Internshala for paid freelance gigs
Even an extra ₹3,000–₹5,000/month can change your budget game.
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Real Talk: You Got This
A ₹25K salary
might seem small, but smart money habits make it powerful.
Most millionaires didn’t start with big money—they started with a budget and discipline.
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