CA explains how the 50-30-20 rule can make you rich faster, if you take it one step further

Ever wondered why some people seem to hit financial freedom years before everyone else? It’s not because they earn crores—it’s because they play smarter with whatever they have. One popular strategy, the 50-30-20 rule, has helped countless people build financial discipline. But as CA Nitin Kaushik points out, those chasing early independence take it several notches higher—and that’s where the magic really happens.

The 50-30-20 rule is simple: half your income goes to needs, 30% to wants, and 20% to savings or investments. It’s a solid starting point for anyone learning to manage money. It builds awareness around spending and ensures you consistently invest in your future. But the truly ambitious—especially those in the FIRE ( Financial Independence, Retire Early) movement—don’t stop there.

Many FIRE followers aim to save 40%, 50%, or even 60% of what they earn. Their mindset isn’t about cutting out joy or living like monks; it’s about speeding up freedom. Every extra rupee saved and invested shortens the timeline to live life on their own terms. Instead of waiting till 60 to relax, they’re designing a life where work becomes optional much earlier.

🔥 The 50/30/20 Rule Works — But Some Take It Further

Most of us start with:
💰 50% → Needs
🎯 30% → Wants
📈 20% → Savings/Investments

And honestly, that’s a great place to begin — it builds money discipline.

But if you’ve ever joined a FIRE group, you’ll notice something…

— CA Nitin Kaushik (FCA) | LLB (@Finance_Bareek) November 5, 2025

A recent Grant Thornton survey on India’s pension landscape shows just how ambitious young earners have become. Nearly 43% of Indians aged 25 and below want to retire between 45 and 55, while over half expect a monthly pension of more than ₹1 lakh. It’s an exciting dream—but also a demanding one.


Retiring that early means your savings need to support 30 to 40 years without a steady paycheck. Assuming you live till around 80, that’s decades of expenses, inflation, and healthcare costs to cover. To make that possible, you’d need an enormous corpus—something that won’t build itself unless you start saving aggressively and investing wisely from day one. That’s where Kaushik’s “take it further” mindset comes in. Moving beyond the 50-30-20 rule—by saving 40% or even half your income—can bridge the gap between financial comfort and true independence.