What's 10-30-50 Rule? Radhika Gupta's Smart-Money Habits To Accumulate Wealth

Edelweiss Mutual Fund CEO Radhika Gupta has offered a simple formula for managing finances at different stages of life, addressing the perennial tug of war between spending and saving.

In a post on X, Gupta outlined the “10-30-50” rule to help young professionals and mid-career earners balance lifestyle aspirations with long-term financial security.

Gupta began by acknowledging a common dilemma among young professionals. “I meet so many young people who tell me they don’t know where to start with investing. How much ... and then how in the first place?”

She added that the struggle between indulging in experiences and putting money aside is not a new phenomenon. “The tussle between attending the next Coldplay concert and putting money away is real. Every generation had it, even before Instagram showed up... my mother still tells me how my father blew up a lot of his salary on buying records,” she wrote.

The essence of Gupta’s investment formula is that financial planning does not mean giving up life’s pleasures entirely.

“Reality is life is not a choice between YOLO and savings... It’s a balance,” she said.

A popular trend among the youth, especially Generation Z, YOLO is the acronym of “you only live once”. This refers to making the most of the present moment, even with extravagant lifestyle expenses.

To achieve the balance, Gupta recommended a straightforward framework — save 10% of your income in your 20s, 30% in your 30s and 50% in your 40s.

“In your 20s: Save 10% (or even 1% if that’s all you can manage — habits matter more than amounts). In your 30s: Save 30%. Life and goals get serious. In your 40s: Save 50%. This is peak income, make the most of it,” she wrote.

Gupta also advised automating savings to make it effortless. She coined the term SDS — Savings Deducted at Source — mirroring the concept of tax deducted at source.

“Young folks often tell me even 10% feels hard and then I ask them, well, how do you pay tax? Oh... tax is deducted at source! Why not do the same with your savings? Automate your SIPs, RDs, or FDs before you even see the money,” she suggested.

The CEO concluded by emphasising that disciplined saving does not need to come at the cost of life’s joys. “You can do both — buy the handbag and save money for the start-up, and that Gen Z is real flex,” Gupta wrote, reinforcing the idea that strategic saving and responsible spending can coexist.

Here’s her post:

Gupta’s 10-30-50 rule offers a practical roadmap for people across different life stages to cultivate financial discipline while still enjoying the rewards of their income.