Kaun banega mango millionaire? Try Radhika Gupta's 10-30-50 savings rule before investing money

Whether you are in your 20s, 30s or 40s, saving money can feel overwhelming with expenses pulling you in every direction. But, as Edelweiss Mutual Fund MD and CEO Radhika Gupta explains in her new book ‘Mango Millionaire’, saving is like net practice before a cricket match—it builds discipline for investing. Her 10-30-50 rule offers a simple framework to achieve lifelong wealth.

At a recent investor meet in Pune, a 25-year-old professional asked Gupta how one can save money after spending on home loans, food delivery apps and exotic vacations. Recalling the incident in the book co-authored with colleague Niranjan Avasthi, Gupta drew a parallel between money management and cricket.

Just as no player would dream of walking into a match without net practice, no investor can hope to succeed without first mastering the art of saving. Saving trains discipline, while investing becomes the real game where goals are scored and wealth is built.

This sports analogy underpins her 10-30-50 rule – a progressive savings framework that could transform how India's millennials and Gen Z build wealth. The framework prescribes saving 10% of income in your twenties, escalating to 30% in your thirties-forties, and ramping up to 50% from your forties onwards.

Radhika Gupta’s 3-phase wealth journey

Phase 1 (20s-30s): The 10% Foundation "Between twenty to thirty years of age, you can safely aim to stow away at least 10 per cent of your income," Gupta writes. She acknowledges the challenge: "Salary packages or earnings are comparatively lower in the early part of one's career, and branded jeans and shoes beckon from dazzling displays in malls. Certain movies must be watched in theatres, where the popcorn costs more than the tickets."

But here's her game-changing advice: "Think of it as paying your future self – and trust me, future you will be thankful. Big time." For nervous beginners, the queen of India’s mutual fund industry suggests starting with just 1% and gradually increasing over time.

Phase 2 (30s-40s): The 30% Acceleration "Between your thirties–forties, your money inflow will increase. You will receive those coveted promotions (or you'll move jobs for a good hike, won't you?), or maybe your business will grow. Start saving at least 30 per cent of your income around this time," she explains.

Phase 3 (40s+): The 50% Wealth Sprint "By the time you are on the other side of the big F – your forties onwards – you'll be earning at your peak potential. Scary expenses like a higher education for your kids and your looming retirement are sure to cross your mind. Try to save at least 50 per cent of your income at this stage."

The TDS hack

Taking a cue from how the Income Tax Department collects TDS at periodic intervals, Gupta comes up with a simple savings hack of creating an SDS or Savings Deducted at Source system.

"Any system which is automated or mandated becomes difficult to bypass. For example, the process of TDS or Tax Deducted at Source, makes it challenging for taxpayers to evade taxes by making the mandatory deductions before the money hits your bank account," she writes in her book published by Macmillan.

"Imagine an automated savings system called SDS (Savings Deducted at Source), which would deduct a fixed amount from our earnings and automatically redirect it to a Systematic Investment Plan (SIP), Recurring Deposit (RD) or FD before we get a chance to spend it,” Gupta says, adding that when a part of your money is saved before you get a chance to see it, you're less likely to feel its absence or spend it impulsively.

“It's like having a financial autopilot to steer you towards your goals. Wouldn't that be an easy, powerful hack?”

The Habit Revolution

Gupta's framework isn't just about numbers—it's about rewiring financial behavior. "Savings is a habit-driven approach. Initially, forming the habit of saving is more important than the percentage of money you save," she emphasizes.

Her philosophy centers on a fundamental truth of how prudent financial planning is a game of balancing both halves of saving and investing.

The book ‘Mango Millionaire’ is a practical, story-driven guide to personal finance that blends money lessons with real-life anecdotes. It is not about becoming the next Warren Buffett but about empowering “mango people” to manage money wisely, build practical portfolios, and create financial security without giving up life’s simple joys.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)