In Short
- High rents, EMIs, and family support make saving 30% difficult
- Saving even 5-10% can be a financial success in tough times
- Investing in skills can offer better returns than forced savings
Most of us have heard the golden money rule of saving at least 30% of your income every month. But is this really practical for everyone? Many young earners and families living in big cities would say no, and they’re not wrong.
Personal finance advisor and CA Abhishek Walia argues that this rule doesn’t accommodate the diverse financial realities many individuals face.
He wrote on LinkedIn, “Why saving 30% of your income isn’t always possible (and that’s okay). Save at least 30% of your income every month. You’ve probably heard this golden rule in every personal finance blog, podcast, or YouTube video.”
He added, “But here’s the thing nobody tells you: if you’re living in a metro, paying EMIs or high rent, supporting parents, or building your career from scratch… Saving 30% can feel impossible.”
This is the reality for millions today. Big city rents, loan repayments, daily expenses, and family responsibilities can make saving feel like a luxury. For those supporting families or beginning their careers, setting aside a significant portion of their income can be particularly challenging.
Walia further says that not meeting this savings benchmark should not lead to feelings of financial irresponsibility. “Personal finance is personal,” he reminds us, emphasising that financial situations are varied and context-dependent.
He suggests that there are periods where saving even a modest 5-10% can be considered a success, and there are times when prioritising an emergency fund is more crucial than investing in systematic investment plans (SIPs).
For some, investing in skills or education could be more useful than forcing big savings targets. “There are years when investing in your skills brings better ROI than locking cash into ELSS,” Walia says.
A practical framework suggested by him includes tracking expenses to understand where money is allocated, saving realistic amounts—even if it’s just Rs 1,000 a month, and focusing on increasing income rather than merely cutting costs.
He advocates for automating small financial wins and maintaining consistency over seeking perfection. “You’re not behind – you’re just building your base. And that’s powerful in itself,” he adds.
Walia’s insights resonate with many who struggle to meet conventional savings goals. He stresses that everyone’s financial journey is different and that financial advice is not one-size-fits-all.
