Understanding Needs, Wants & Investments

Managing your salary becomes easier when you divide it into three simple categories: Needs, Wants, and Investments. Here’s a practical breakdown you can follow.

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🟢 NEEDS (Essential Expenses)

These are mandatory expenses required for daily living.

🏠 Housing

• Rent
• Home Loan EMI
• Maintenance Charges

⚡ Utilities

• Electricity Bill
• Water Bill
• Gas
• Internet
• Mobile Recharge

🍚 Groceries & Essentials

• Groceries
• Milk
• Household Items

🚗 Transportation

• Fuel
• Public Transport
• Vehicle EMI
• Vehicle Servicing

🏥 Insurance & Healthcare

• Health Insurance Premium
• Term Insurance
• Medicines
• Doctor Visits

🎓 Education (Mandatory)

• School Fees
• College Tuition

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🟡 WANTS (Lifestyle Spending)

These are optional expenses that improve your lifestyle but are not essential.

🍽 Dining & Entertainment

• Eating Out
• Food Delivery
• Movies
• OTT Subscriptions

🛍 Shopping

• Clothing (Non-Essential)
• Gadgets Upgrade
• Accessories

✈ Travel

• Vacations
• Weekend Trips

🎮 Hobbies

• Gaming
• Gym Membership
• Sports Club
• Subscriptions

🎁 Lifestyle Extras

• Gifts
• Party Expenses
• Premium Services

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🔵 INVESTMENTS (Future Wealth Building)

These allocations help you grow and secure your financial future.

📈 Market Investments

• Mutual Funds (SIP)
• Stocks
• ETFs
• Index Funds

🏦 Safe Investments

• Fixed Deposits
• Recurring Deposits
• PPF
• EPF

🏠 Asset Building

• Real Estate
• Plot Purchase

👶 Long-Term Goals

• Child Education Fund
• Retirement Corpus
• Emergency Fund

🪙 Alternative Investments

• Gold (SGB, ETF)
• Digital Gold
• Crypto

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Tip: A simple rule to follow is the 50/30/20 approach:

• 50% for Needs
• 30% for Wants
• 20% for Investments

Adjust these percentages based on your income and financial goals.