Salary to SIP Planner
Stop wondering where your money went. Give every rupee a job.
The Salary to SIP Planner helps you organize your monthly finances using the gold standard of budgeting: the 50/30/20 Rule. Instead of saving what is left after spending, this tool helps you spend what is left after saving. Enter your in-hand salary to instantly calculate how much you should allocate for your Needs, Wants, and SIP Investments to achieve financial freedom.
Golden Investment Number
₹0
Power of this Habit
If you invest this amount for 20 years, you could have:
₹0.00 Crores
Analysis
You should allocate ₹0 for bills, ₹0 for fun, and strictly invest ₹0.
Most people spend first and save what's left. Wealthy people save first and spend what's left.
The 50/30/20 Rule: Explained
Popularized by Elizabeth Warren, the 50/30/20 rule simplifies financial planning by dividing your after-tax income into three distinct buckets. It prevents overspending and ensures you invest consistently.
50% Needs
Essential expenses you cannot survive without: Rent, Groceries, Utilities, Insurance premiums, and Loan EMIs.
30% Wants
Lifestyle expenses that make life enjoyable but aren't mandatory: Dining out, Netflix, Travel, and Shopping.
20% Savings
Your future freedom fund: SIPs, Emergency Fund, PPF, and other long-term investments.
📊 Real Life Example: Budgeting ₹50,000
Meet Rohan, a software engineer who earns ₹50,000 in-hand per month. Without a plan, he used to spend ₹45,000 and save only ₹5,000. Here is how he fixed it using this planner:
- NEEDS₹25,000 goes to his Rent (₹12k), Food (₹8k), and Bills (₹5k). He realized his rent was too high and moved to a shared flat to fit this budget.
- WANTS₹15,000 is his guilt-free spending money for weekend trips and movies. Once this is over, he stops spending.
- SAVINGS₹10,000 is automatically deducted on the 1st of every month into two SIPs (₹5k each). He treats this like an expense he must pay.
The Result: By saving ₹10k/month for 15 years at 12%, Rohan will accumulate ₹50 Lakhs. Before this plan, he was saving almost nothing.
Pay Yourself First
The secret to building wealth isn't earning more; it's saving before you spend. As Warren Buffett says:
"Do not save what is left after spending, but spend what is left after saving."
When you use this calculator, set up an Auto-Debit (Mandate) for your SIPs on the salary day itself. This removes the temptation to spend your savings portion.
Frequently Asked Questions
How much of my salary should I invest in SIP?▼
A commonly followed guideline is the 50-30-20 rule, where 20% of income goes towards savings and investments. This planner helps estimate SIP amounts based on income growth.
Should I invest in SIP if I have loans?▼
High-interest debt should usually be cleared first. For lower-interest loans like home loans, SIP investments can continue alongside EMIs.