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When your monthly salary is around Rs. 30,000, balancing expenses and savings becomes a major challenge. However, with proper financial planning, expenses can be managed even with a low salary.

The biggest question every month when the salary arrives is how to make the money last the entire month and how to save. This is especially true when the monthly salary is around Rs. 30,000, making it a major challenge to balance expenses and savings. However, with proper financial planning and by following some simple rules, you can not only manage your expenses with a low salary but also build strong savings for the future. So, let's tell you how you should manage your expenses if your salary is Rs. 30,000.

What does the 2026 Basic Financial Rule say?

According to financial experts, if your salary is Rs. 30,000 per month, your annual rent should not exceed two months' salary. That is, a maximum of Rs. 60,000 per year or about Rs. 5,000 per month. Similarly, your total EMIs should not exceed 30 percent of your monthly salary. This means that you should not spend more than Rs. 9,000 on loans or EMIs every month.

How important are savings and an emergency fund?

Even with a low salary, savings cannot be ignored. According to the rules, at least 20 percent of your salary should go into savings. That is, with a salary of Rs. 30,000, you should try to save about Rs. 6,000 every month. Besides this, an emergency fund is very important. Experts believe that an amount equivalent to at least 6 months of expenses should be set aside. Accordingly, an untouched emergency fund of approximately Rs. 1.20 lakh is considered essential.

Insurance and Retirement Planning

Life insurance is also essential for financial security. It is generally advised that your life insurance coverage should be at least 15 times your annual income. At a monthly salary of Rs 30,000, this amount comes to approximately Rs 50 lakh. To secure your retirement, you should ideally have a corpus of about 25 times your annual income. According to this calculation, the target for your retirement fund should be around Rs 60 lakh.

Why is budgeting important?

The first step in managing a Rs 30,000 salary effectively is creating a budget. It's essential to allocate your income to expenses, savings, EMIs, and emergency needs. This clearly shows where your money is going and where you can cut back. Making a list of expenses every month, writing down necessary items before shopping, and avoiding unnecessary purchases help increase savings.