How To Create Your Financial Plan Easily: A Simple, No-Nonsense Financial Blueprint for Every Salaried Employee

Are you earning well but still feeling anxious about money?

Does the thought of your parents’ health expenses, your kids’ education, or your own retirement keep you up at night? Are you living paycheck to paycheck despite having a decent salary?

If any of that resonates, then you, my friend, need a solid, practical financial plan, one that’s made for salaried individuals like us. This is exactly what I learned from one of Pranjal Kamra’s brilliant videos, and today, I’m breaking it down for you, in my own words, with real-life relevance and complete clarity.

Let’s talk about how you can become financially free, not someday, but starting now, using what you already earn.

Table of Contents

The 50-30-20 Rule That Actually Works (With a Tweak!)

Let’s say your household income is ₹1,00,000/month. Here’s how it should be allocated:

50% (₹50,000) to NEEDS – Rent/EMIs, groceries, bills.
30% (₹30,000) to WANTS – Movies, vacations, shopping.
20% (₹20,000) to SAVINGS & INVESTMENTS – For your future.

Now here’s the tweak I personally used and recommend for last 4 years now (and so does Pranjal):
50% Needs – 25% Wants – 25% Savings

Why? Because we tend to overspend on wants and underinvest in our future. So flip the order of spending:
Save first. Spend later.
Don’t wait till the month ends to invest. Automate your SIPs for the 6th or 10th of every month, right after your salary hits the account.

“When budgeting goes off-track, it should affect your luxuries, not your future.”

Start with the Unsexy Stuff (That Most People Ignore)

Let me be blunt: most people know what to do, but they don’t do it. Why? Because the boring basics don’t feel exciting.

But you don’t build wealth on excitement. You build it on discipline.

Let’s cover those “boring but essential” steps that no one talks about, but everyone needs:

1. Build Your Emergency Fund

Before anything else.
If your monthly needs = ₹50,000, then your emergency fund = ₹3–5 lakhs.
Store it in a liquid mutual fund or an auto-sweep savings account with instant withdrawal.
This gives you the freedom to say NO, to a toxic job, to stress, to financial anxiety.

2. Get Health Insurance

You’ve insured your car, but not your body?
Get at least:

₹10 lakh cover if you’re single
₹20 lakh for family floater

Premiums are shockingly low, under ₹1000/month.

3. Buy a Term Life Insurance

Only if you’re the earning member.
Take a pure term plan, not those expensive endowment or money-back plans.
Cover = 20x your annual income (if you earn ₹12L/year, take a ₹2 crore cover).

Cost? Around ₹2000–₹2500/month if you’re under 30 and a non-smoker.
That’s it. Not ₹80,000 premiums that agents push.

4. Kill Your High-Interest Debt

Before you talk stocks, crypto, or mutual funds, kill personal loans and credit card EMIs.
They are wealth killers.

Once your emergency fund is ready and insurances are done, use any extra money to prepay expensive loans. Home loan is okay, but personal/car loans? Get rid of them.

5. Now Start Investing Like a Pro

Now comes the exciting part, but only after you’ve done the basics.

For Short-Term or Specific Goals (1–5 years):

Use FDs, PPF, or Senior Citizen Schemes (if applicable)
Plan for education, weddings, or home renovation here

For Retirement:

Use National Pension Scheme (NPS)
Why? Because you can’t withdraw early, and that’s a good thing!

For Long-Term Wealth:

Start SIP in Mutual Funds (goal-based SIPs are the best)
Use stocks for wealth creation only with surplus money (not for essential goals)

Now Listen, Don’t Delay.

Delaying financial planning is the biggest trap.
In your 20s, you think you have time.
In your 30s, responsibilities pile up.
In your 40s, parents age and expenses increase.
In your 50s, it’s too late.
In your 60s, regret remains.

So start today.

If you’re ready to start your journey, don’t just consume content, take action:

👉 Open a Demat Account with Zerodha and start investing today.
👉 Invest via Smallcase and access expert-managed portfolios.
👉 Use Coin by Zerodha to invest in direct mutual funds with zero commission.

Final Thoughts

This financial plan isn’t flashy, and it isn’t overnight.
But it works. Because it’s practical, actionable, and grounded in reality.

We need more content like this—and for that, I want to thank Pranjal Kamra and the Finology team. Their commitment to spreading financial awareness, without sugarcoating or gimmicks, is truly commendable. 🙏