The standard rule is great, but Indian realities—like high metro rents and family obligations—require some tweaking.
1. The Metro Living Reality (55/25/20)
In cities like Mumbai or Bangalore, rent often eats up 30-40% of a salary. If your "Needs" cross 50%, don't panic. Borrow 5% from your "Wants" bucket. It's better to sacrifice a few dinners out than to skip your SIPs.
2. The "Black Tax" / Family Support
Many young Indians send money home to parents. Where does this fit? If it's for their medical bills or essentials, it's a Need. If it's for a family vacation or renovation, it's a Want. If it's for their retirement fund, it's Savings.
3. Festivals & Weddings
Diwali gifts, Rakhi, and wedding "Shagun" are inevitable expenses. These should come from your Wants bucket. If you know a wedding is coming up, start a "Sinking Fund" within your Wants bucket 3 months in advance.