Business
Ask Dhirendra: “How do I decide how much to save and invest when my income is just about enough?” – The Times of India
“How do I decide how much to save and invest when my income is just about enough?”This is one of those questions that sounds technical, but is actually very emotional.On paper, it’s simple: income comes in, expenses go out, and whatever is left is “savings. In real life, income comes in, rent, EMIs, school fees, petrol, Swiggy, Zomato, sale on Myntra, birthday gifts, one sudden expense… and at the end of the month, you look at your balance and say, “I’ll start investing from next month. Pakka.”Next month looks surprisingly similar.So let’s start with an honest admission: for most people, the problem is not which fund to choose. It’s how much they can realistically save when it feels like the money is just about enough.At Value Research, whenever we look at this, we don’t begin with a number like “you must save 30%”. We start with a different idea: savings are not what is left after spending. Savings are what you decide first; spending adjusts after that if you flip this order, the maths – and your behaviour – changes completely.A good rule of thumb for many middle-class households is to allocate 20–30% of their take-home income to savings and investments. However, I also know that for many people today, 30% sounds like a bad joke. So instead of fighting over the “ideal” number, let’s work with two simpler questions:
- What can you save today without breaking your life?
- How can you make that number grow every year?
To answer the first question, you need to know where your money is actually going, not where you think it is going. For one or two months, track your expenses honestly – not for Instagram, for yourself. You don’t need an app; even a simple notebook or spreadsheet works.
Where does a typical salary go?
Once you see your own pie chart, three things usually stand out:
- Some expenses are non-negotiable (rent, basic food, fees).
- Some are negotiable but important (a modest phone, occasional eating out).
- Some are pure leakage (unused subscriptions, impulsive orders, “I don’t even remember what this was”).
Your first “investment” might simply be plugging two or three leaks. Even if that frees up only ₹2,000–₹3,000 a month, that is your starting SIP.Now let’s look at how “small” that really is.
From spare change to serious money
When we run these numbers at Value Research in our retirement and goal calculators, the results are always the same: the gap between zero and small is far bigger than the gap between small and perfect.But what if your income truly is at the survival stage? There are people for whom even ₹2,000 is a luxury some months. If that’s your reality, you have two parallel jobs. One is to create a tiny habit – even ₹500 or ₹1,000 a month into a recurring deposit or a conservative fund. The absolute amount is less important than the mental switch from “I’ll save if anything is left” to “I will save something, and then I will live on the rest.”The second job is to make sure that as your income grows, your lifestyle doesn’t expand at the same speed. This is where a lot of middle-class Indians quietly sabotage themselves. Every salary increase automatically becomes a better phone, nicer meals out, upgraded gadgets, and bigger car loans. The percentage saved stays the same, or sometimes even falls.A very powerful habit – one we often build into plans at Value Research – is the “step-up”. Each year, when your salary goes up, you increase your SIPs and savings before you upgrade anything else.
Step up your SIP before you step up your lifestyle
In many examples we’ve run, the step-up strategy leads to a dramatically higher corpus at the end, without you ever feeling an acute “sacrifice” in any single year. You just avoid letting every pay hike leak out into lifestyle.Now, how do you decide your own number?Here’s a simple approach:
- First, add up your genuine essentials: rent/EMI, groceries, utilities, fees, basic transport.
- Next, be realistic and add a modest amount for discretionary spending that you know you’ll do anyway – because you are human, not a robot.
- See what is left. From that leftover, commit to a percentage – even 10% of your take-home income – as a non-negotiable
saving and investing amount. Set up automatic transfers and SIPs for that right after your salary date.
If that number feels tight, start a little lower and promise yourself one thing: every time your income goes up, your savings rate will go up faster than your spending.At Value Research, when we build long-term plans, we don’t assume people will suddenly start saving 40% from next month. We assume they will start somewhere realistic, and then we design step-ups. The rigour is in the process, not in some magical starting number.One last point. Many people postpone investing because they are embarrassed by how small their starting amount looks. Please don’t underestimate the psychological power of seeing a small, growing pile that you started and maintained. It changes how you think about yourself: from “I can’t save” to “I am someone who always saves something.” That identity is worth more than one extra dinner out.So how much should you save and invest when your income feels just about enough? The honest answer is: start with whatever you can without lying to yourself, protect that amount like you protect your rent, and then make sure it rises every time your income increases. The “right” number is not what a formula says; it’s the number you will actually stick to for the next 20 years.The perfect percentage can wait. The first rupee cannot.If you have any queries for Dhirendra Kumar you can drop us an email at: toi.business@timesinternet.in(Dhirendra Kumar is Founder and CEO of Value Research)
Business
Trade deal done, says Trump; PM Modi thanks him for cutting tariff to 18% – The Times of India
NEW DELHI/ WASHINGTON: After months of bruising trade tensions, India and the US on Monday announced a bilateral trade deal that will see Washington slash additional tariffs on Indian imports to 18%, from the current 50%, making it more competitive for textiles, leather and seafood exporters.While PM Narendra Modi, in a post on X, which followed US President Donald Trump’s announcement on Truth Social, said he had a wonderful conversation with “dear friend” Trump and thanked him on behalf of 1.4 billion people for the reduced tariff of 18% on Indian goods, he did not mention the trade deal at all in his post on X that followed Trump’s “wonderful” announcement.
PM Modi and Trump
Modi also did not comment on Trump’s claim that in their conversation the PM had agreed to stop buying Russian oil and purchase much more energy from the US, and potentially Venezuela. Trump had said Modi had agreed to stop buying Russian oil and to buy much more from the US — $500 billion of energy, technology and farm products — a step that the President claimed would help end the war in Ukraine.According to the American President, Modi also agreed to bring down tariff and non-tariff barriers against the US to zero. A US embassy spokesperson confirmed that the final tariff now on India is 18%, down from the earlier 50%. This is a better deal for India than countries such Vietnam, Bangladesh, Indonesia, South Korea and China, which face higher tariffs. The Trump-Modi conversation coincided with the visit of EAM S Jaishankar to US for a critical minerals ministerial that will be chaired by Secretary of State Marco Rubio this week.The announcement came six days after India and the EU announced the completion of talks for a comprehensive trade agreement.Trump leadership vitalfor global peace: ModiThe deal had drawn sharp comments from some members of the Trump administration, including attacks on the EU.In his X post, PM said, “When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation”. He added that Trump’s leadership was vital for global peace, stability, and prosperity. India fully supports his efforts for peace. Modi said he was looking forward to working closely with Trump to take the partnership to unprecedented heights.Apart from reciprocal tariff, Trump had announced an additional 25% tariff on India for its purchase of Russian oil.Trump said the US had agreed to the trade deal with India out of friendship and respect for Modi, and at the latter’s request. “Our amazing relationship with India will be even stronger going forward. PM Modi and I are two people that GET THINGS DONE, something that cannot be said for mos,” he added.Trump in his social media post also said that it was an honour to speak with Modi whom he described as “one of my greatest friends and, a Powerful and Respected Leader of his Country”.
Ties set to get boost
While the US had acknowledged in past few months that India had cut down its Russian purchase, it had not eliminated the additional tariff.Trump also said, “We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the US and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week!”Following the announcement last week of the successful conclusion of FTA negotiations with EU, India had suggested that India and US might be close to finalising the trade agreement they have been discussing since Feb last year.Trump’s disclosure of the trade deal was preceded by two India-related posts a few hours before, one of which featured him and Modi on a magazine cover with the caption “The Mover and the Shaker”. Another post featured New Delhi’s India Gate, which Trump called “India’s beautiful Triumphal Arch” and said, “Ours will be the greatest of them all!” — referring to a similar monument he wants to build in Washington DC.
New York Attorney General Letitia James speaks to the media, after she attended a hearing and pleaded not guilty to charges that she defrauded her mortgage lender, outside the U.S. District Court for the Eastern District of Virginia, in Norfolk, Virginia, U.S., Oct. 24, 2025.
Jonathan Ernst | Reuters
Days before Super Bowl 60, New York Attorney General Letitia James has a message for consumers: Be careful about placing trades on prediction markets.
“New Yorkers need to know the significant risks with unregulated prediction markets,” James said in a statement Monday. “It’s crystal clear: so-called prediction markets do not have the same consumer protections as regulated platforms. I urge all New Yorkers to be cautious of these platforms to protect their money.”
Prediction platforms like Kalshi and Polymarket are expected to generate billions of dollars in trading volume around the Super Bowl.
Consumers can make trades on game events — similar to online sportsbooks like DraftKings or FanDuel — as well as on predetermined outcomes, such as which companies will advertise during the Super Bowl, an issue CNBC Sport reported on last week.
James said the platforms’ products are bets “masquerading” as event contracts.
She warned there are concerns about the nascent prediction market industry, including “upholding prohibitions against insider betting and requiring regulatory review to ensure the financial stability and integrity of gambling operators.”
“Prediction markets may appear as modern, high-tech platforms for speculation or ‘forecasting,’ but in practice, many operate as unregulated gambling without the basic protections New York consumers both deserve and expect from properly licensed operators,” James said in the statement.
Prediction market contracts trade somewhat similarly to all-or-nothing options, with contracts priced between $0 and $1. The contracts trade up or down depending on the action.
In addition to contracts on Super Bowl commercials, both Polymarket and Kalshi are offering other trades related to the game, including on matters like “What songs will be played at the halftime show?,” “Who will attend the big game?,” and more traditional sportsbook “bets” such as “Seattle vs. New England: Most Rushing Yards,” as CNBC reported last week.
There are laws that prohibit insider trading on prediction markets, just as on traditional financial markets. But industry experts say they’re skeptical that the Commodity Futures Trading Commission, recently gutted as part of widespread government cuts, has the will or the means to police those problems.
Last week, CFTC Chairman Michael Selig said he had directed agency staff to withdraw a proposed rule that would have banned prediction trades on sports and politics. He said new rules would be coming.
Disclosure: CNBC has a commercial relationship with Kalshi.
Business
India-US trade deal: 25% penal tariffs linked to Russian oil gone? Here’s what we know – The Times of India
US President Donald Trump has reportedly agreed to remove the 25% tariff America imposed on India for its crude oil imports from Russia. A New Delhi–based source quoted in a Bloomberg report said that the US has agreed to withdraw the 25% penal tariff for India’s Russian oil procurement. In the meantime, India and the US have announced a trade deal, with the Trump administration lowering the tariffs on Indian exports to 18%. Trump took to social media platform Truth Social to announce the trade deal, which was later confirmed by PM Narendra Modi confirming it via X (Twitter). However, India is yet to confirm the details of the trade deal shared by Trump in his post.
Also Read | India-US trade deal announced by US President Donald Trump; check detailsUS Ambassador to India Sergio Gor also told a TV channel that the final figure of tariff on India will be 18%, indicating that the 25% penal tariff linked to Russian crude has also been removed.He also said that the 18% tariff rate is effective immediately, and that India would buy $500 billion worth of US energy, coal, technology and agricultural products.Russia has been the largest supplier of crude for India since the start of the former’s war with Ukraine. The share in India’s oil import basket has gone up to almost 40%. But recently, after US sanctions on Russian oil firms, Indian refiners had been forced to reduce Russian crude oil purchases.
India-US Trade Deal: What PM Modi, Trump said
PM Modi posted on X, “Wonderful to speak with my dear friend President Trump today. Delighted that Made in India products will now have a reduced tariff of 18%. Big thanks to President Trump on behalf of the 1.4 billion people of India for this wonderful announcement. When two large economies and the world’s largest democracies work together, it benefits our people and unlocks immense opportunities for mutually beneficial cooperation. President Trump’s leadership is vital for global peace, stability, and prosperity. India fully supports his efforts for peace. I look forward to working closely with him to take our partnership to unprecedented heights.”Before Trump had posted on social media, “It was an Honor to speak with Prime Minister Modi, of India, this morning. He is one of my greatest friends and, a Powerful and Respected Leader of his Country. We spoke about many things, including Trade, and ending the War with Russia and Ukraine. He agreed to stop buying Russian Oil, and to buy much more from the United States and, potentially, Venezuela. This will help END THE WAR in Ukraine, which is taking place right now, with thousands of people dying each and every week! Out of friendship and respect for Prime Minister Modi and, as per his request, effective immediately, we agreed to a Trade Deal between the United States and India, whereby the United States will charge a reduced Reciprocal Tariff, lowering it from 25% to 18%. They will likewise move forward to reduce their Tariffs and Non Tariff Barriers against the United States, to ZERO. The Prime Minister also committed to “BUY AMERICAN,” at a much higher level, in addition to over $500 BILLION DOLLARS of U.S. Energy, Technology, Agricultural, Coal, and many other products. Our amazing relationship with India will be even stronger going forward. Prime Minister Modi and I are two people that GET THINGS DONE, something that cannot be said for most. Thank you for your attention to this matter!”
Trade deal done, says Trump; PM Modi thanks him for cutting tariff to 18% – The Times of India
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