Managing your salary wisely is the foundation of long-term wealth. Yet most people struggle with budgeting, overspending, and inconsistent savings. According to financial educator Sanjay Kathuria, the secret to managing money like the top 1% lies not in earning more—but in structuring your finances smartly.
In this article, we reveal Sanjay Kathuria’s 4 Bank Account Routine—a simple, powerful system to gain control over your salary, eliminate financial stress, and build wealth like the top 1%.
💡 Why You Need More Than One Bank Account
Having a single bank account for everything—spending, saving, and investing—leads to chaos. You lose track of expenses, mix savings with bills, and rarely know how much you actually have to spend.
Sanjay Kathuria emphasizes that clarity is power. By separating your salary into 4 clear accounts, you automate discipline and make financial growth effortless.
🏦 The 4 Bank Account System
1. Salary/Income Account (Primary Account)
Purpose: Receive salary or income
Percentage: 100% (initial deposit point)
Tasks:
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This is your main account where salary is credited
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Every month, auto-transfer money from here to the other 3 accounts
💡 Think of this as a “holding bay”—money shouldn’t stay here for long
2. Essentials Account (50–60%)
Purpose: Rent, groceries, bills, EMI, transportation
Linked to: Your UPI, debit card, payment apps
Percentage: 50% to 60% of salary
Use this for:
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Monthly bills
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Food & fuel
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EMIs
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Subscriptions
Only spend from this for needs, not wants.
💬 Katha-Rule: “If it doesn’t help you live, it doesn’t belong in Essentials.”
3. Wealth/Investment Account (20–25%)
Purpose: Grow wealth and achieve goals
Percentage: 20% to 25% of salary
Auto-invest this amount in:
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SIPs (Mutual Funds)
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Index funds
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Gold/SGB
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Retirement funds (PPF/NPS)
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Stocks (long term)
📌 Pro Tip: Automate SIPs right after salary day, so you “pay yourself first.”
4. Lifestyle/Fun Account (10–15%)
Purpose: Travel, eating out, gadgets, Netflix, etc.
Percentage: 10% to 15% of salary
Spend this guilt-free.
Go for dinners, watch movies, take short trips—but only from this account.
🚨 Important: When this account is empty—no more fun that month!
🛡 Bonus: Emergency Fund (Build Over Time)
Once your essentials and investing routine are set, start building a separate Emergency Fund equal to 6 months of expenses. Keep this in a high-interest savings account or liquid fund—only to be used for job loss, health issues, or major emergencies.
📊 Example Salary Breakdown (₹50,000/month)
| Purpose | % | Amount (₹) |
|---|---|---|
| Essentials | 55% | ₹27,500 |
| Investments | 20% | ₹10,000 |
| Lifestyle/Fun | 15% | ₹7,500 |
| Emergency/Savings | 10% | ₹5,000 |
Automate all transfers within 1–2 days of receiving your salary.
🧠 Why This Works (Insights from Sanjay Kathuria)
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Removes emotional spending: You don’t dip into savings to fund impulse buys.
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Increases savings rate automatically: Pay yourself before spending.
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Helps avoid debt: Lifestyle expenses are pre-planned and capped.
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Builds financial confidence: You always know where your money is going.
🧠 “If your money has no system, it will always leave you.” — Sanjay Kathuria
🔄 Monthly Routine (Do This After Every Salary Credit)
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Get salary into Account #1
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Immediately auto-transfer:
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55% to Essentials Account
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20% to Wealth Account (SIPs auto-debited)
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15% to Lifestyle Account
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10% to Emergency Fund or savings goal
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Keep tracking and adjust percentages if needed
💬 Final Words from Sanjay Kathuria
“Managing money is not about sacrifice. It’s about structure. This 4-bank account method lets you live well today, invest for tomorrow, and sleep peacefully tonight.”
Whether you earn ₹25,000 or ₹2.5 lakh a month, this method scales with your income. Adopt it for 90 days — and you’ll never go back to one messy bank account again.
