“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:

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:

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:

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)

Last Updated:December 19, 2025, 12:27 IST

Amazon is cutting about 8.5% of its workforce in the tiny European nation, or roughly 370 employees out of a total headcount of 4,370.

While Amazon described the move as part of routine restructuring, the consequences could be severe for non-EU workers. (Photo Credit: X)

When Amazon announced plans earlier this week to cut 14,000 jobs globally, a significant share of the impact fell on its technology operations in Luxembourg, a move that could put Indian and other foreign employees in a particularly difficult position.

According to a Bloomberg report, the e-commerce giant is cutting about 8.5% of its workforce in the tiny European nation, or roughly 370 employees out of a total headcount of 4,370. This marks Amazon’s largest round of layoffs in Luxembourg in nearly two decades.

While the company described the move as part of routine restructuring, the consequences could be severe for non-EU workers. Luxembourg hosts Amazon employees from countries including India, the US, Australia, Egypt and Tunisia. Under local immigration rules, foreign workers who lose their jobs typically have three months to find new employment or leave the country.

“These are adjustments that reflect business needs and local strategies,” Amazon said in a memo to staff dated December 12, adding that the severance package “goes well beyond industry benchmarks”. The Luxembourg labour ministry did not respond to Bloomberg‘s request for comment.

Prash Chandrasekhar, a member of Amazon’s employee delegation in Luxembourg, told Bloomberg that some employees are almost certain to be forced to leave the country. “I am almost sure some employees will have to leave. It’s not easy to find a job in Luxembourg, for 370 people entering the job market at the same time,” he said. Chandrasekhar added that for professionals seeking roles in big technology firms, there are limited alternatives outside Amazon in the country.

Under European Union rules, companies must consult employee representatives, and in some cases the government, before carrying out mass layoffs. Following two weeks of negotiations, Amazon reportedly reduced the number of planned job cuts in Luxembourg from 470 to 370. A portion of affected employees are expected to receive formal termination notices in February, Chandrasekhar told the agency.

Beyond the immediate human impact, the layoffs may also create friction in Amazon’s long-standing relationship with Luxembourg, which has positioned itself as a tax-friendly hub for multinational companies. With a population of about 6,80,000, the country has benefited from hosting Amazon’s European operations since 2003, and the company remains its fifth-largest employer even after the cuts.

An Amazon employee, speaking anonymously to Bloomberg, said most of the job losses are expected among software developers as the company expands its use of artificial intelligence and trims roles created during the pandemic-era hiring boom.

Trade unions, including the General Luxembourg Workers’ Organization (OGBL), have accused the government of granting Amazon and other multinationals “outsized” tax benefits. Bloomberg reported that Amazon and several foreign firms operate holding structures in Luxembourg to channel European business, using accounting practices that were ruled legal by European courts in 2023 but allow companies to minimise tax liabilities.

Public records show that Amazon EU Sarl, the Luxembourg-based holding entity, reported €70.4 billion ($82.8 billion) in EU e-commerce sales last year, nearly matched by expenses including staff costs. As a result, taxable profits amounted to just €180 million.

Despite the layoffs, political ties remain publicly cordial. In November, Luxembourg Prime Minister Luc Frieden met Amazon chief executive Andy Jassy in Seattle, calling the company a “vital partner” in a LinkedIn post. Jassy responded, “Luxembourg’s been an important home for Amazon and our 4,000 teammates there. Appreciated the discussion and partnership.”

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