--- title: 'Where Every ₹100 You Earn Should Go' source: 'https://youtube.com/watch?v=rDDEG_xIuYI' video_id: 'rDDEG_xIuYI' date: 2026-08-03 duration_sec: 935 --- # Where Every ₹100 You Earn Should Go > Source: [Where Every ₹100 You Earn Should Go](https://youtube.com/watch?v=rDDEG_xIuYI) ## Summary The video presents a practical framework for personal finance management, using a hypothetical ₹100 to illustrate how to allocate income across five key buckets: safety, growth, fixed, skills, and lifestyle. It emphasizes that mastering this allocation with small amounts builds the discipline needed for larger incomes, and it introduces a specific term insurance plan as part of the safety net. ### Key Points - **The ₹100 Framework** [00:02] — Start with ₹100 as your entire income, divided into five parts: safety, growth, stability, earning ability, and enjoyment. The principle scales to any income level. - **Why Start with ₹100?** [00:31] — Many people wait to earn more before planning, but if you can't manage ₹100, you won't manage ₹1 lakh. The same principles apply regardless of the amount. - **Unequal Division** [01:45] — The ₹100 is not divided equally. Each category is important but requires different amounts. The allocation is: 20% safety, 15% growth, 10% fixed, 10% skills, 45% lifestyle. - **Safety Net First** [02:14] — The first 20% goes to a safety net to avoid selling investments during emergencies. It has two layers: emergency fund (for temporary income loss) and term insurance (for permanent loss). - **Emergency Fund Target** [03:23] — Target six months of essential expenses, not income. For example, if essential expenses are ₹30,000/month, the emergency fund should be ₹1,80,000. - **Term Insurance** [04:35] — Term insurance provides a lump sum to family if the breadwinner dies. Axis Max Life Smart Term Plan Plus offers ₹1 crore cover from ₹595/month, with discounts for salaried individuals and women. - **Growth Bucket** [06:28] — 50% of the ₹100 goes to growth, but the video later clarifies it's 15% after the safety net is established. SIPs in mutual funds are recommended for beginners, with three rules: invest regularly, stay diversified, give time. - **Fixed and Safe Bucket** [07:36] — 10% goes to a fixed bucket for planned goals (e.g., down payment). Capital stability is prioritized over high returns. This is different from the emergency fund. - **Skill Investment** [09:00] — 10% goes to skill development to increase earning capacity. In your 20s, this can be more valuable than stock investments. Ask three questions before spending: will it improve work quality, increase income, and be used within 30 days? - **Lifestyle Bucket** [11:09] — The remaining 45% is for living expenses and enjoyment. As income grows, this percentage can be reduced to invest more. - **The Twist: After Emergency Fund** [12:48] — Once the emergency fund is complete, the safety bucket drops to 5%, and the freed 15% is redirected to growth (25%) and fixed (15%). This increases investing without a salary raise. - **Practical Implementation** [14:13] — After salary, immediately allocate money to separate accounts: safety, SIP for growth, recurring deposit for fixed goals, skill budget, and the rest as spending limit. ### Conclusion The video provides a simple, actionable formula for managing any income by dividing it into five buckets, with a dynamic adjustment after the emergency fund is built. It emphasizes starting small, prioritizing safety, and investing in skills to boost earning potential. ## Transcript management. And for this you do not need lakhs of rupees. We will start with just ₹100. Now assume this ₹100 is your entire income. So we will divide this ₹100 into five simple parts. One part will protect you financially. One part will make your money grow. One part will give you stability. One part will increase your earning ability and one part will allow you to enjoy life today. Now you people will think Vaibhav Bhai why only ₹100? Because many people make mistakes here. They think that first they will earn more money and then they will start investing and financial planning. But if you cannot manage ₹100 properly, then even after earning ₹1 lakh, your problems will never be solved automatically. That's why ₹100 is the starting point. And once you learn to manage this ₹100, then ₹10,000, even ₹1 lakh. And if tomorrow you earn Rs 1 crore, the same principles will work on that too. Only the zeros will keep increasing behind the amount. This is going to be the best thing you will ever learn in your life. And Something That you like this video for the algorithm and rate it at 1.25X for a better experience. And I guarantee that by the end of this video, whether you are a student, have a job, run a business, or just get pocket money, you will have a simple, clear formula that you can immediately apply to your current income. So this video is going to be highly practical. So let's put these ₹100 on the table and decide where the first rupee should go. Now first of all understand one important rule. We will not divide these ₹100 equally. That means 20 there, 20 there, 20 here. This will not happen because this formula may look very clean to you but it will not work in practical life. Look, every category of your money can be equally important. But not every category requires an equal amount. Rewind and listen to this line once. So then how exactly should it be divided? Now suppose you have ₹100. Most people will first think about how much of this money should I invest in stocks or which SIP should I start or how much return will I get. But here we will do exactly the opposite. We will keep the first 20% aside. Now, the simple rule for growing money is to Now, the simple rule for growing money is to you have to sell your savings and investments due to an emergency. Now for example, suppose you have stocks worth ₹3 lakh or you have invested in mutual funds but you have only ₹5,000 in your bank account. Now suddenly you lost your job, payment got stuck somewhere in the business or there was a major medical emergency at home. Now technically you have ₹3 lakh but practically you cannot withdraw it. Because it is possible that on the day you need that money, the market may be a little down and then the investment that you started for 10 years, you may have to break it in loss in just 10 months. That's why out of every ₹100, the first 20% will go into your safety net. And there are two different layers inside this safety net. The first layer is emergency fund and the second is term insurance. Look, the purpose of both is exactly the same, that is protection. But both solve completely different problems. An emergency fund protects you when your income stops temporarily. For example, losing a job, slow business growth for a few months, or unexpected expenses. Generally, your target should be to Listen carefully. Not six months' income, but six months' essential expenses. That means suppose you earn ₹00. But to run the house, emergency fund? Approximately ₹1,80,000 and until this amount is completed, 20% of every ₹100 of yours will go into this safety net. Now suppose you earn ₹10,000 then 20% of safety net becomes ₹20,000. If you earn ₹1 lakh then 20% becomes ₹20,000. You can apply this 20% to your income and drive it accordingly. But emergency fund only solves temporary problems. Another bigger question arises if your parents depend on your income. Your home loan is running. If you are married or your children's future is linked to your earnings, then what will happen to those expenses after you are gone? Who will pay the EMI? Who will pay the children's fees ? Who will run the house? Who will take care of your parents? And this is where term insurance becomes useful. Its concept is very simple. You pay a small premium every month and in return the company promises that if something unfortunate happens to you within the term, the family will get complete cover together. And there is a plan in term insurance which I personally find sensible. Axis Max Life Smart Term Plan Plus. People avoid term insurance due to two reasons. Firstly, it will probably be expensive and secondly, it is very complicated. I will prove you both wrong. First of all, is it expensive ? No. 1 Crore cover starts at just ₹595 per month. Remember we had withdrawn ₹2000 for emergency fund. This is even less than that. Just ₹20 a day, a coffee is more expensive than that. And if you want a cover of Rs 2 crore, it starts at just ₹92 per month. cost. And one thing that I find very smart is that if you are salaried then you will get 15% discount on the first year premium. And if you are a woman then there is a 15% discount. And if you are a salaried woman then you get both. And the sooner you start, the more the system rewards you. And in the description below. Just enter your age and income. The premium will be immediately reflected to you. Look, the matter is very simple. If the thing that protects your entire family is cheaper than a coffee, then there is important task today. You have to go and see what your premium will be. The link is So understand the safety bucket in simple language. Emergency fund protects you when your income temporarily stops and term insurance protects your family if your income permanently stops. Now this is about protecting your money. Now let's talk about growing your money. So When Your Income Temporarily Stops. Wherever age term insurance protects your family if your income stops permanently. Now this is about protecting your money. Now let's talk about growing it. Now once your safety net is fixed, the next 50% out of every 100 will go into the growth bucket. That is, a place where your money will grow in the long term. Now, the simplest option for growth for beginners can be What happens here? A fixed amount gets invested automatically every month and here you do not need to sit and check the market every day. There is need to predict whether the market will go up or down. All this burden that is on you is taken away by mutual funds. They have a whole team to manage this. And your job is just three things. Number one is to invest regularly. Number two is to stay diversified, which means choosing a fund that is invested in different sectors. And number three, give him enough time. Because the returns of mutual funds or SIP do not come in a straight line. The portfolio will perform very well for a few years. Almost nothing will happen for a few years. And sometimes it may happen to you also fall. That's why there's a very simple rule for growth buckets. The money you need urgently should not go here. For example, suppose you have to buy a laptop or make a down payment on a car. you cannot take the risk of investing this money in the market. Because it is possible that when the time comes to withdraw money, the market may be temporarily down. That is why the purpose of some money is to remain safely available at the right time and for this purpose we will keep the next 10% which is fixed and safe bucket. Now the idea here is very clear. Capital stability is more important than high returns. That means, suppose if I have kept ₹5 lakh somewhere for the down payment of my car, then I do not want that in the pursuit of high returns, that ₹5 lakh falls to ₹4.5 lakh tomorrow. I want my capital to remain as stable as possible. It should hold its value even after a year. And let me clear up another confusion. Fixed fund and emergency fund are not the same. An emergency fund is for expenses that you cannot predict. Like job loss, sudden medical But the fixed bucket is for expenses that are expected. You know they're coming. You are just preparing money for them in advance. problems whereas fixed fund is for planned goals. So I hope your basic difference is clear. Till now, out of ₹100, we have kept 20% for safety , 15% for growth and 10% for future plan goals. That means almost 45% of our money has been allocated. But now comes that 10% which can probably But now comes that 10% which can probably money will not grow your existing savings. This will directly increase your earning capacity. And that is skill investment. Now out of every ₹100, the next 10% will go into your skill bucket. Honestly, in your 20s, this bucket might be worth more than stocks. Because suppose you earn ₹10,000. You are also investing ₹1500 out of that in stocks. If the investment performs well, your money will grow gradually. But if your income increases from ₹1,000 to ₹00 due to some skill, then your investing capacity can double simultaneously. Where you were investing ₹1500 earlier, you can now invest ₹3,000 there. Therefore, there are two ways to create wealth. First, earn returns on the money you have and second, earn more money by improving your capability and the second method makes a huge impact in the initial years of your career i.e. in the early 20s. Buying courses is not skill development. Completing the course and using it in real life is skill development. Now this skill development money can go towards any course. It can go into any book. It can go into a better laptop or software or any equipment. It can go into improving communication. It can be used to learn sales, editing, coding, designing, AI, public skill. But before spending money, please ask yourself three simple questions. First, will this improve my work quality? Second, can this increase my income or opportunities ? Third, will I use this skill practically within the next 30 days? And before investing money anywhere, the answer to all three of these should be yes. Now its basic goal is to increase its market value. Suppose, because of a course or tool worth Rs 5,000, you start earning Rs 3,000 extra every month, then that investment did not give you immediate returns. He increased the size or lot size of every investment in your future. And that is the power of skill development. So till now we have allocated 55% out of ₹100. 20 for safety, 15 for growth, 10 for fixed and safe, 10% for skills. Now we have 45% left. And this 45% is equally important because if you sacrifice your entire life in the name of money management that brother I will not buy anything, I will not eat anything, I will not do anything, I will only save, then with this financial system you will become successful but practically you will remain a feeling emotionless person. Because brother, these investments etc. will continue. Living is equally important. That's why the remaining 45% is the lift bucket. That is, the money that will run your life today and make it better. Rent, food, travelling, electricity bill, phone bill, family contribution, basic shopping, entertainment and a little guilt-free enjoyment. But as your income increases significantly, you won't necessarily need the full 45% lifestyle. Your rent and food income will not increase infinitely. Therefore, by reducing the percentage of the live bucket at high income levels, you can invest it in growth and long term assets. just gives you a starting point. By the way, after the shoot was over, I realised that my hair was very strange and today my hairstyle has become very strange. So kindly bear it with me because I ca n't shoot it back nor have I explained everything in a very sweet way. So I don't want to go back to it again, the flow breaks bro. So till now we have allocated the full ₹100. 45% for Live, 20% for Safety, 15% for Growth, 10% for Fixed and 10% for Skills. But now will come the most important twist in this entire system. This 20% will not go into the safety bucket forever. As your six-month emergency fund is completed, the distribution of these ₹100 will change. And without your income magically increasing, you will suddenly start investing more money than before. How? Let me tell you this. See, after 6 months of emergency fund, your safety bucket will reduce from 20% to just 5%. Remember not to make it zero. Let it remain at 5%. And we will not spend the extra 15% that has become free And we will not spend the extra 15% that has become free buy that. We will promote it to other buckets. Now after 6 months promote it to other buckets. Now after 6 months your new formula will be 45% Live, 5% your new formula will be 45% Live, 5% Safety, 25% Growth, 15% Fixed and 10% Safety, 25% Growth, 15% Fixed and 10% Skills which gives us a total of 100%. Now what happened here? Your entire income remains safe. But the 15% that was earlier going towards building an emergency fund will now month. Earlier you were putting ₹15,000 per month in the growth bucket. After the emergency fund is complete, the same investment can be made at ₹25,000 per month. Here your salary did not increase by even ₹1 but your long term investing capacity increased by ₹10,000 per month. And the fixed bucket also increased from ₹1,000 to ₹1,000. This means that the plan goals will also be completed faster. And this is the reason that after completing the emergency fund, you can safely increase the speed of wealth creation. Now it is very simple to make this whole formula practical. After getting your salary, do not wait for the end of the month because generally there is nothing left to invest at the end of the month. safety money in a separate account. And the first thing in this safety account is term cover. Axis Max L Smart Term Plan Plus offers ₹1 crore cover starting at just ₹595 per month. Meaning, if you calculate for the day, a coffee costs just ₹20 more than that. I have given its link in the description below. Enter your age and income. The premium will be immediately reflected to you. Set up automatic SIP for growth. Create a separate recurring deposit for a fixed goal. Set a separate budget for skills and whatever is left in the live budget will be your actual spending limit. And before closing this video, comment your monthly earning and also comment how much money you have to invest and where according to this formula. At least with this excuse you will take your first step. You will create a personalized formula for yourself. I'll see you in the next one. Until then, keep hustling, keep learning and as always, keep inspiring. inspiring. [music]