# Pay Yourself First: save 5% before spending, advisor Kadri says 2026-09-16T00:27:09+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Start by setting aside 5% of income the moment it arrives, then spend the rest, says financial advisor Aadil Kadri. This 'pay yourself first' approach removes the need for constant discipline because savings are secured before bills or purchases can eat into them. For someone earning Rs 1 lakh a month, saving Rs 5,000 first leaves Rs 95,000 for expenses. Kadri, Vice President Advisor at Continental International Group and author of '3 Steps to Financial Freedom,' says naming a specific goal for the set-aside money, retirement, education or emergencies, stops it feeling like spare cash. Once 5% becomes comfortable, he suggests moving toward 10% and then higher increments. The habit matters more than the percentage, Kadri says. Budgeting apps can track spending, but they do not create the saving decision. Setting money aside at income arrival turns saving from a hopeful leftover into a planned action that survives busy months with school fees or holidays. ## Indian Opinion Analysis The 'pay yourself first' method is a behavioural finance technique that flips the standard budgeting sequence: save before you spend rather than spend what is left after saving. India's household financial savings rate has been volatile, dropping to 5.1% of GDP in FY23 before recovering slightly to 5.3% in FY24, according to RBI data. Most Indian households still rely on fixed deposits and gold, with mutual fund systematic investment plans (SIPs) only crossing Rs 20,000 crore monthly inflows in 2024. The key test is whether a saver can sustain the 5% floor during months when EMIs, school fees or medical emergencies compress disposable income. The next indicator to watch is whether the household savings-to-GDP ratio rises above 6% in the FY25 data, due from the RBI around February 2026. ## Coverage - livemint.com Tags: Aadil Kadri, Continental International Group, RBI Canonical: https://indianopinion.org/pay-yourself-first-save-5-before-spending-advisor-kadri-says/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/pay-yourself-first-save-5-before-spending-advisor-kadri-says/#story-in-brief