10-30-50 Rule for Wealth: Radhika Gupta’s Smart Money Guide for Young Professionals

For young professionals, saving money often feels like a constant struggle between expenses, lifestyle choices, and financial responsibilities. Radhika Gupta , MD and CEO of Edelweiss Mutual Fund, in her new book Mango Millionaire , offers a refreshing perspective on wealth building . She compares saving to a cricket net practice, emphasizing that discipline in saving lays the groundwork for success in investing later.

Gupta writes, “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.”

The 10-30-50 Rule Explained

At the heart of Gupta’s book lies the 10-30-50 rule, a structured savings framework that evolves with age and income. The rule recommends saving 10% in your twenties, 30% in your thirties and forties, and 50% after your forties. This stepwise approach allows individuals to align their financial habits with different life stages and income growth.

Phase One: Building the 10% Foundation (20s–30s)

During the twenties, salaries are often modest, and lifestyle choices demand a share of income. Gupta suggests saving at least 10% of income during this period. Recognizing the challenges of starting early, she encourages even small beginnings: “Start with 1% if necessary, and gradually increase over time.”

She points out that early saving habits are more about discipline than numbers. Whether it is skipping an unnecessary expense or putting aside a small portion of income, this phase is about laying the foundation for financial independence .

Phase Two: Accelerating to 30% (30s–40s)

As professionals enter their thirties and forties, income typically rises due to promotions, career stability, or business growth. Gupta advises saving at least 30% of income during this stage.

This is also a period of increased financial responsibilities such as home loans, children’s education, and family needs. Despite these demands, Gupta stresses the importance of prioritizing savings and using higher earnings to accelerate wealth creation.

Phase Three: The 50% Sprint (40s and Beyond)

By the forties, most professionals are at their peak earning potential. Gupta recommends saving at least 50% of income at this stage. While expenses such as education and retirement planning may still exist, this is the period when disciplined savings can significantly influence long-term wealth.

She emphasizes that the forties and beyond should be about consolidation and preparation for retirement, ensuring financial security and peace of mind in later years.

The SDS Hack: Automating Savings

Gupta introduces the concept of Savings Deducted at Source (SDS), inspired by the Tax Deducted at Source (TDS) system. She argues that automated or mandated deductions ensure consistency.

“Just like taxes are deducted before salary hits your account, savings should also be automated to prevent spending temptations,” she suggests. This hack transforms saving from a conscious decision into a default action.

Habit Over Numbers

Perhaps Gupta’s most powerful message is that wealth creation depends more on habit than numbers. She highlights that the consistency of saving—no matter how small—matters more than the actual percentage in the beginning. Building the discipline of saving early ensures that, over time, higher amounts can be saved effortlessly.