Where does your salary/income go?

POSTED BY Suhas ON April 18, 2013 9:02 am COMMENTS (8)

Hi All,

Was just curious to know what % of your salary/income go to which savings/investment/expenditure etc.

Let me share my numbers here, all these are per month

Household expenses: 37%

Loan/EMI: 24%

Equity/ESPP: 12%

Mutual Funds: 14%

LIC: 4%

PPF: 1%


The rest 8% are for other monthly expenses(movie/dining/gifts/vehicle service/household purchases/other unexpected ones) etc.


What do you think of these numbres, where can it get better(i’am sure there is some room for improvement)

What are your numbers? Are you willing to share it here on this thread?




8 replies on this article “Where does your salary/income go?”

  1. Dear Suhas, May I know how much sum assured you are looking for in your term cover & how mich mly prem. (convert the yly prem. to mly) you w’d have to pay?

    Regarding LIC, if you are fearful for a wrong choice, Only god can help you to overcome your fear.



  2. sonadhi says:

    I think LIC-4% should be closed as you will not get more than 4% & that remaining 8% should be much controlled as dear Ramesh & PM says.The part to PPF 1% should also be increased to at least 5%.
    Still one question remains about the home loan.How we should treat it.Part of Income or part of expense or to straight a way to neglect from the Home Take Salary.Confused.
    What team thinks on this.


    1. Ramesh says:

      Home for own consumption = Expense.
      Home for Rental purpose (to someone else) = Investment. And then the Cap Rate and other stuff come into play to tell you if business wise it makes sense for it or not.
      – my opinion.

  3. Ramesh says:

    1. Around 50-60% of take-home put into investment (very flexible since there are no fixed SIP or anything, just lumpsum investments in whatever I want). One large pool of long term investment (no segregation of retirement, child education or marriage).
    2. Rest expenses – various discretionary and non-discretionary. Again completely flexible. If some amount remains unspent, that also is put out of the savings account.
    3. No debt. There is one old car loan on last legs, but I am presently getting more return on my debt instruments than that old car loan, so paying is not the best idea. Otherwise, no other loans or EMI.
    4. No PPF/PF/NPS issues here.
    5. No LIC or other endowment policies. No child plans. No ulips. Just one plain Jane term insurance and one family floater sickness-insurance.
    6. Most of the savings goes into Equity funds (Direct plans only).

    You should take a Blank Piece of Paper and start from scratch. How would you go about, if you do not have anything already. And then start slowly modifying your current situation into your ideal one.

  4. Suhas says:

    Ashal, I’am just expecting some % numbers here, not the actual ones, so i guess there no harm in mentioning the % of where your salary go.
    On the improvements side, ia’m looking at creating an emergency fund by allocating something everymonth and then also buy a term plan, so do that which of my other things will be hit, how can i manage?

    FFC, 60% is a really stunning number, i guess i can reach that only after my loans are done(10 yrs away) , yes i’am try to reduce the 8%, on giving up LIC, yes i have thought long and hard still not found teh courage to put up a loss for that….

    1. %s dont matter. Are you saving enough for your goals? If you have loans then after you close your loans can you save enough and make up for any loss wrt goals?
      Those are the important questions

      Reg. LIC policy. If the policy is young and has completed 3 yrs. simply make it paid-up Pay not more premiums. As simple as that.

  5. Suhas,
    These are mine
    58.7% of take home pay saved for retirement (35%) and my sons education
    rest expenses (pay yourself first).
    No loans.
    Equity is about 50-60% rest in debt(mandatory NPS)
    All lumpsums go towards his marriage expenses goal

    Leading a frugal lifestyle by continuously trying to reduce expenses is the key to financial freedom.

    Try and get rid of the LIC,
    Have an emergency fund for unexpected expenses. If you can muster up a lakh or two invest in an instrument which will give you monthly interest which can be added to the emergency fund.

    Try to reduce that above mentioned 8%

    The crucial point is are you saving enough for your goals?

    If yes, the other details don’t matter.

  6. Dear suhas, I’m not sure how many ‘ll be ready to share their personal figures in this discussion. I want to know, what sort of improvement you want in your own case.



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