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According to YouTuber Ankur Warikoo, sticking to these simple strategies each month can boost financial stability and help grow long-term wealth effectively
This allocation ensures a healthy bank balance with consistent savings. (Representative/Shutterstock)
Popular YouTuber Ankur Warikoo has shared som practical financial tips that could transform one’s savings strategy. In his latest shorts, he revealed five secret formulas designed to help one boost their monthly savings and investments.
According to Warikoo, following these simple yet effective strategies consistently can significantly improve financial stability and long-term wealth.
The 50-30-20 Rule
The first formula is the 50-30-20 rule. Upon receiving a salary, one can divide it into three portions: 50% for essential needs such as rent, groceries, utility bills, children’s fees, and medications; 30% for discretionary expenses like dining out, shopping, and entertainment; and 20% for savings and investments in fixed deposits, mutual funds, or gold.
This allocation ensures a healthy bank balance with consistent savings. For instance, with a monthly salary of Rs 50,000, one would allocate Rs 25,000 for essentials, Rs 15,000 for discretionary expenses, and invest Rs 10,000. Over a year, this would result in automatic savings of Rs 1,20,000.
Build A 6-Month Emergency Fund
The second formula emphasises the importance of building an emergency fund to cover six months of expenses. If monthly expenditures amount to Rs 40,000, one should reserve at least Rs 2,40,000 in a separate bank account. This fund is crucial for emergencies such as job loss, serious illness, or vehicle breakdown and should not be used for regular expenses.
Keep Credit Card Usage Below 30%
The third formula advises using only 30% of the credit card limit to avoid excessive spending and maintain a healthy credit score. For example, if the credit card limit is Rs 1,00,000, spending should not exceed Rs 30,000. Timely bill payments are crucial to avoid interest charges and keep the credit score intact.
Pay Off High-Interest Loans First
The fourth formula suggests prioritising the repayment of high-interest loans. For instance, if someone has a personal loan at 18% interest and a home loan at 8% interest, they should focus on repaying the personal loan first.
By paying off a Rs 5,00,000 personal loan in three years, one could save Rs 2,00,000 in interest. It is advisable to make extra payments of 10-20% monthly, using bonuses, incentives, or freelance earnings, while also checking for any pre-payment charges.
Rule Of 72
The fifth formula, known as the Rule of 72, helps calculate the number of years required for money to double based on the interest rate. By dividing 72 by the interest rate, one can determine the time frame for their money to double.
For instance, at 12% interest, the money will double in six years (72 ÷ 12). At 8% interest, it doubles in nine years (72 ÷ 8), at 15% interest in 4.8 years (72 ÷ 15), and at 18% interest in four years (72 ÷ 18).
November 13, 2025, 19:28 IST
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