How Much Should You Invest in SIP Every Month?

A story of Raghav — a young father from Pune finding clarity in his financial journey.

Meet Raghav – 36, Salaried, and Full of Dreams

Raghav is 36 years old, working in a good company in Pune. He takes home a salary of ₹1,00,000 per month. He lives with his wife and their 3-year-old daughter, Aarya.

Like every responsible parent, Raghav’s dreams are big:

• Buy his own house in Pune 🏠
• Provide the best education for Aarya 🎓
• Plan for her future marriage 💍
• Build a comfortable retirement for himself and his wife 💰
• Maintain an emergency fund for unexpected events 🛟

But month after month, reality hits him. Rent, groceries, school fees, fuel, lifestyle expenses — by the end of the month, there is usually not much left. Whenever he thinks of future expenses, he feels a knot in his stomach.

Confusion Turns into a Conversation

One day, after a casual chat with a colleague who recently started investing through SIPs, Raghav finally decided: “I need help.” He reached out to a trusted financial planner to understand how to plan properly.

When he walked into my office, he looked worried but hopeful. After some warm conversation, I asked him a simple question:

“Raghav, tell me honestly — how much of your ₹1,00,000 actually gets saved or invested every month?”

He thought for a while and replied, “Maybe ₹5,000 to ₹8,000… sometimes nothing. It depends on the month.”

I smiled and said, “That’s okay, Raghav. You’re not alone. Let’s not start with guilt. Let’s start with clarity.”

Facing the Future: Real Cost of Dreams (with Inflation)

To help Raghav understand the importance of planning, we started listing his future goals:

• Aarya’s higher education in around 15 years
• Aarya’s marriage in 20–22 years
• Buying a home in the next 8–10 years
• Retirement after around 24–25 years
• Emergency fund worth at least 6 months of expenses

Raghav estimated some numbers based on “today’s cost”. But then I showed him how inflation silently increases these expenses over time.

Raghav’s eyes widened. “I never thought like this. I only think in today’s numbers,” he said softly.

I reassured him, “You don’t have to panic. That’s why we plan. You don’t need all the money today. You just need to start investing the right amount every month.”

Introducing the 50 : 30 : 20 Rule

To build discipline without making life too restrictive, I introduced Raghav to a simple budgeting framework: the 50:30:20 Rule.

This rule divides your take-home income into three categories:

I explained to Raghav that this rule is not a rigid law, but a guiding framework. It creates:

• Simplicity – Easy to remember and follow
• Flexibility – Can be adjusted slightly based on real life
• Balance – Enjoy life today while preparing for tomorrow
• Financial discipline – Encourages consistent investing habits

Applying 50:30:20 to Raghav’s Income

Raghav’s monthly take-home is ₹1,00,000. Using the 50:30:20 rule:

That means, if Raghav wants a healthy and balanced financial life, he should target at least ₹20,000 per month towards investing.

How Much SIP Per Goal? A Simple Roadmap

Now the question became: How should this ₹20,000 be divided across his goals?

We created a realistic, goal-based SIP allocation plan:

The exact numbers and fund choices were tailored to his risk profile, but Raghav now saw something powerful:

“My dreams are not impossible. They just need systematic monthly SIPs and time.”

What Actually Changed in Raghav’s Life?

Earlier, Raghav used to spend first and invest whatever was left. Now, after understanding the 50:30:20 rule, he decided to reverse the approach:

• First, he kept aside ₹20,000 for SIPs as soon as salary came in.
• Then, he managed his Needs within ₹50,000.
• He slightly reduced “Wants” from ₹30,000 to around ₹25,000 initially.

This small shift gave him huge mental peace. He no longer felt guilty about spending on a family dinner, because he knew his investments were already taken care of.

A Thank You Note and a New Beginning

A few months later, Raghav sent a heartfelt message to his financial planner:

“Thank you for enlightening me. I always thought investing was complicated and only for rich people. You made it simple, structured and achievable. You are not just my financial planner — you are my true advisor in this journey to financial freedom.”

With the power of disciplined SIP investing, guided by the 50:30:20 rule and goal-based planning, Raghav is now confidently walking on the path towards:

• A secure education and future for his daughter
• His own home one day
• Dignified and peaceful retirement
• A strong emergency buffer

Brick by brick, SIP by SIP — his financial future is being built with clarity and confidence.