8 10 Rule: What It Is and How It Applies to Indian Finance

When people talk about the 8 10 rule, a practical guideline for dividing monthly income into spending, saving, and investing portions. It’s often mentioned alongside other rules like the 15-15-15 rule, but it’s simpler and more focused on cash flow than long-term compounding. The idea is straightforward: out of every ₹100 you earn, spend ₹80 and save or invest ₹20. That’s 80% for living expenses and 20% for building wealth. It’s not about getting rich overnight—it’s about staying consistent, especially when your income is irregular or you’re just starting out.

This rule doesn’t require fancy tools or high returns. It works because it’s realistic. Most people in India don’t earn fixed salaries with bonuses. Many are freelancers, small business owners, or gig workers. The 8 10 rule fits that reality. It doesn’t ask you to save 50% like some financial gurus suggest. It asks for 20%, which is doable even if you’re paying rent in Mumbai or buying school supplies in Lucknow. And unlike the 15-15-15 rule—which needs ₹15,000 monthly and 15% returns—the 8 10 rule adapts to your income. If you make ₹20,000 a month, you save ₹4,000. If you make ₹50,000, you save ₹10,000. The ratio stays the same.

What makes the 8 10 rule powerful is how it connects to other financial habits you already see in Indian households. You’ll notice it in families who set aside money for Diwali gifts, school fees, or medical emergencies without calling it a "fund." It’s the same logic behind keeping a small emergency stash in a fixed deposit or using PPF for long-term goals. The rule doesn’t tell you where to invest the 20%, but it forces you to separate that money from daily spending. That separation is the real win. Once you do that, you’re already ahead of most people who live paycheck to paycheck.

It’s not a magic formula. It won’t turn ₹20,000 into ₹1 crore in 15 years like the 15-15-15 rule might. But it’s the foundation. Most people who follow the 15-15-15 rule started with the 8 10 rule. They saved 20%, then gradually increased it. They learned to live on less, then invested the rest. The posts below show real examples of how this rule shows up in everyday finance—in how NRIs manage money, how startups track expenses, how people choose between PPF and FDs. You’ll see how the 8 10 rule isn’t just a theory. It’s the quiet habit behind the big financial wins.