How a Person with ₹30,000 Salary Can Buy a House: A Practical Budget & Timeline

For someone earning ₹30,000 per month, buying a house may feel like an impossible dream. But with discipline, planning, and the right strategy, even middle-class earners can achieve it in 8–12 years.

Here’s a step-by-step guide on how to make it happen.

1. Decide the Target House Price

Suppose you want to buy a ₹30 lakh house in the next 10 years.

Banks usually finance 75–80% of the cost.

You’ll need at least ₹6–8 lakh as a down payment + registration and other charges.

👉 Your first goal is saving for the down payment.

2. Create a Practical Budget (For ₹30,000 Salary)

Here’s how you can split monthly income:

40% Needs (₹12,000): Rent, food, transport, bills.

20% Lifestyle (₹6,000): Entertainment, shopping, festivals.

40% Savings & Investments (₹12,000): Focused on house goal + emergency fund.

👉 This ensures balance between living today and securing tomorrow.

3. Build an Emergency Fund First

Before house planning, save ₹1.5–2 lakh as an emergency fund.

Use an FD or liquid mutual fund.

This covers unexpected expenses without disturbing house savings.

4. Save for Down Payment Through SIPs

If you save ₹10,000/month in a SIP (mutual fund):

In 6 years @12% return → ~₹10 lakh.

In 8 years → ~₹17 lakh.

In 10 years → ~₹23 lakh.

👉 This comfortably covers a down payment for a ₹30 lakh home.

5. Plan for Home Loan EMI

After saving down payment, the next step is a home loan.

Loan Amount: ₹22–24 lakh (after down payment).

EMI (20 years @ 8% interest): ~₹20,000/month.

Since your income will likely increase over 8–10 years, paying ₹20,000 EMI will be more manageable than today.

6. Steps to Speed Up the Goal

Annual Bonus/Extra Income: Put fully into home savings.

Side Hustles: Freelance, tutoring, or part-time jobs can add ₹5,000–₹10,000/month to your savings.

Salary Hikes: Increase SIP by at least 10% every year.

👉 This can shorten the timeline from 10 years to just 6–7 years.
Example Timeline (₹30,000 Salary)

Years 1–2: Build emergency fund (₹2 lakh).

Years 3–8: Save ₹10,000–₹12,000/month in SIP → Grow ~₹10–17 lakh.

Year 8: Use savings as a down payment + registration.

Year 9 onwards: Take ₹22–24 lakh loan, EMI ~₹20,000/month.

By year 8–10, with salary hikes, EMIs become affordable, and you achieve your dream home.

A person earning ₹30,000 per month can buy a house—but it requires patience, discipline, and smart investments. Build an emergency fund first, then save for a down payment through SIPs, and finally take a home loan when financially ready.

With this plan, a middle-class earner can own a home in 8–10 years without financial stress.

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