10-30-50 rule explained: Edelweiss CEO Radhika Gupta offers guide to building wealth for young professionals; advises automating savings and investing smartly

NEW DELHI: For many young professionals, saving money can feel like a juggling act between bills, loans, and lifestyle choices. But Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, offers a fresh perspective in her new book 'Mango Millionaire.' She compares saving to a cricket net practice: the discipline you build at the beginning while saving sets the stage for successful investing later.“Just as no player would dream of walking into a match without net practice, no investor can hope to succeed without first mastering the art of saving. Saving trains discipline, while investing becomes the real game where goals are scored and wealth is built,” Gupta explains, as reported by ET.Radhika Gupta’s book talks about the 10-30-50 rule, which is a step-by-step framework to build lifelong wealth. The simple system recommends saving 10% of income in your twenties, 30% in your thirties and forties, and 50% after your forties.Gupta draws inspiration from the TDS (Tax Deducted at Source) system, proposing a Savings Deducted at Source (SDS) model."Any system which is automated or mandated becomes difficult to bypass. For example, the process of TDS or Tax Deducted at Source, makes it challenging for taxpayers to evade taxes by making the mandatory deductions before the money hits your bank account,” she said, as quoted by ET.Gupta stresses that the key to wealth creation is habit, not just the percentage of savings. “Savings is a habit-driven approach. Initially, forming the habit of saving is more important than the percentage of money you save,” she says.(Disclaimer: Recommendations and views on the stock market and other asset classes given by experts are their own. These opinions do not represent the views of The Times of India)