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The 50-30-20 Rule is a simple yet effective approach to managing your finances. It helps break down your income into three key categories— needs , wants , and savings —to create a balanced financial plan. Whether you're just starting to manage your income or looking to improve your financial habits, this rule provides a clear structure to allocate your money wisely. Let’s explore the 50-30-20 Rule in detail and see how it can help you better manage your finances with practical examples. What is the 50-30-20 Rule? The 50-30-20 Rule divides your after-tax income into three main categories: 50% for Needs : This portion covers your essential expenses that you cannot avoid. These are your necessities that you must spend on for daily living. 30% for Wants : These are the non-essential things you can enjoy but can live without. This includes lifestyle choices and discretionary spending. 20% for Savings : This portion should be dedicated to building your future. It includes savi...

  Tips and Tricks for saving taxes on a home loan 1. Claiming Deduction on Home Loan Interest under Section 24(b): You can claim a tax deduction of up to ₹2 lakh per year on the interest paid on your home loan under Section 24(b) of the Income Tax Act. This is applicable if the loan is for purchasing, constructing, or repairing a property. For a self-occupied property, the maximum limit is ₹2 lakh, and for a rented property, you can claim the entire interest amount as a deduction. 2. Claiming Deduction on Principal Repayment under Section 80C: The principal repayment on your home loan is eligible for a tax deduction of up to ₹1.5 lakh under Section 80C. This is a cumulative limit, so the total deductions for various eligible items (like PPF, life insurance premiums, etc.) should not exceed ₹1.5 lakh. The deduction applies to both self-occupied and let-out properties. 3. Deduction for First-Time Home Buyers under Section 80EE: If you are a first-time homebuyer and the l...