How to Budget, Save and Make Money by Ankur Warikoo

4 minute read

Budgeting and saving money are among the important habits of adulting. Spending money on non-essential is so easy, even if you are committed to a well-laid spending plan. Still, getting on track with a realistic budget and squirrelling money away may not be as difficult as you think. Begin by taking the time to create a budget that can help you reorganize your finances, prioritize spending and managing debt, allowing you to make progress toward your long-term financial goals. Ankur Warikoo who is an entrepreneur, angel investor, and an active public speaker will take us through what is budgeting, how it should be done, and how you will accomplish your needs, desires and investments in the article written for you on how to budget, save and make money by Ankur Warikoo. 

About Ankur Warikoo 

Source: Ankur Warikoo

Ankur Warikoo is an entrepreneur, angel investor, mentor and public speaker based out of India. He was a founder and board member of in 2015 and was the CEO until 2019. Prior to that, he started the Groupon India business in 2011 and was the APAC GM, until 2015.

He is passionate about public speaking and is often found speaking at corporations, colleges, schools and conferences, largely on motivation, leadership, consumer internet, and entrepreneurial mindset. 

He is an active angel investor and invests in early-stage tech start-ups and mentors the founders on Product-Market-Fit, Talent hiring & retention and the founder internet. 

Also Read: 7 Habits of Highly Effective People

Why Is Budgeting Important?

Before we understand how to budget, let’s see why budgeting is important. Budgeting is simply balancing your money with your income. It is a process of creating a plan to spend your money and this spending is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do things you need to do or would like to do. 

Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. If you won’t balance and spend more money than you make, you are going to face a huge problem. Many people don’t realize that they spend more than they earn and slowly sink deeper into debt every year. 

Related Reads: Top Lessons to Raise a Future CEO

Ankur Warikoo’s Definition of Budgeting

Ankur Warikoo: The basic question which has been always asked from me is that, when we get a salary or we get some money, then how to allocate it? Because we have to fulfil our needs, we have to pay our rents, pay our bills of food & transportation, then we need to buy a phone as well and have to invest as well, then how should one think about it? 

You must have heard of the 50:30:20 budgeting principle and according to me it’s a good start, but what happens is when you grow up or you switch your jobs, this rule doesn’t really work. What works? Let’s understand! 

Ankur Warikoo, “Budgeting is a simple exercise which means whatever money you get every month, from your salary, there is an income you are receiving at a personal level, and against that are your expenses.”

Categories of Expenses 


Includes your rent, your EMI of house or loan of house, food, clothes and your bills. These are necessary expenses that need to be serviced. You should spend your 50% over here. 


Includes your phone, camera, bike or car, a holiday. These are things you want from your desired perspective. The 30% should go to your wants and your desires 


This is what I have always talked about. The remaining 20% should go towards investing, saving for the future. At first, this is something really good to focus on but after 1 year of your income, it starts fading. This is because if you follow this for life you won’t be able to save or invest. You need money for education, marriage, etc, it will definitely not work. So the model needs to change. 

Ankur Warikoo’s Model of Budgeting 

Ankur Warikoo: The model is built on Compounding. Compounding means that every year you keep earning a regular rate of return, so initially, it will grow slowly but after that, it will rapidly grow because the base at which you will be earning, will keep on increasing 10%, 15% and so on. This will give you a chunk of income every year. The basic premise of compounding is that you have time.

 A person in their 20s has a lot of time and can adopt this budgeting principle at an early age, the more you will experience the power of compounding. My model says to invest only for 10 years. If you start now and invest till your 30s, you will never have a dearth of money.

Credits: Warikoo

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