Managing a good salary does not always guarantee financial stability. Without a proper plan, even a decent income can disappear into daily expenses, lifestyle upgrades, and unexpected costs. Bengaluru-based CA Meenal Goel shared a simple budgeting approach for people earning a Rs 12 lakh annual CTC, explaining how they can divide their income between investments, savings, responsibilities, and personal spending.

Taking to social media, Goel explained that someone earning a Rs 12 lakh CTC may receive an in-hand salary of around Rs 80,000 to Rs 90,000 per month. She suggested following a step-by-step approach where investing and saving come before spending.

Invest first, spend later

Goel believes the first priority after receiving a salary should be investing. She suggested putting aside 20% of the monthly income towards investments, which would be approximately Rs 16,000 to Rs 18,000 for someone earning this salary range.


According to her, this amount can be invested through options such as equity mutual funds or systematic investment plans (SIPs). She also advised increasing the investment amount gradually as income grows every year. The idea, she explained, is to make wealth creation a habit instead of waiting to invest whatever money is left after spending.

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Build an emergency fund

The Bengaluru CA also highlighted the importance of preparing for unexpected situations. She recommended keeping 10% of the salary aside for an emergency fund, which comes to around Rs 8,000 to Rs 9,000 every month.

This fund can provide financial support during situations such as job loss, medical emergencies, or other sudden expenses. Having a safety net, according to Goel, helps reduce financial stress and provides greater security.

Keep living expenses under control

For regular expenses, Goel suggested allocating around 35% to 40% of the salary. This would amount to approximately Rs 28,000 to Rs 36,000 per month.


This category includes essential costs such as rent, groceries, and transportation. She pointed out that higher expenses directly reduce the amount available for savings and investments. Keeping lifestyle costs under control can help people increase their financial surplus over time.

Spend on upskilling and career growth

Goel also included learning and career development as an important part of the budget. She suggested allocating 10% of the salary, around Rs 8,000 per month, towards upskilling.

This could include professional courses, certifications, or learning new skills that improve career prospects. According to her, investing in knowledge can help people secure their future and negotiate better salaries in the long run.

Set aside money for family support

For those who have financial responsibilities towards their family, Goel recommended keeping aside 5% to 10% of the salary. This works out to around Rs 4,000 to Rs 8,000 per month and can be used to support dependent parents, children, or other family needs.

Keep a guilt-free spending budget

Goel also believes budgeting should include room for enjoyment. She suggested keeping 10% to 15% of the salary, around Rs 8,000 to Rs 12,000, for guilt-free spending. This money can be used for activities such as travelling, buying gadgets, entertainment, or personal purchases without affecting long-term financial goals.


Sharing her own money habit, Meenal Goel said she always followed the approach of investing first, saving next, and then using the remaining amount for expenses. Her budgeting method focuses on balancing financial security with enjoying life while continuing to build wealth.