Receiving a festive bonus is an uplifting financial event for many Indian households, especially during vibrant seasons such as Dussehra and Diwali. But this windfall can quickly lose its impact if spent thoughtlessly or gets swallowed up by immediate desires. The “3-Box Bonus Formula” is a simple planning tool that helps ensure every rupee of the bonus is harnessed for the family’s lasting benefit. With clear divisions for Needs, Wants, and Wealth, this structure is tailor-made for middle-aged families balancing responsibilities and aspirations.

Atul Shinghal, founder and CEO of Scripbox, explains that the essence of the three-box formula lies in categorising the bonus into three distinct segments. Needs (30%): Addressing current liabilities and urgent expenses; Wants (30%): Fulfilling lifestyle aspirations and festive desires; Wealth (40%): Investing in long-term financial goals. "This proportional split offers a middle ground between indulgence and discipline," he adds.

Box 1: Needs (30%) – Taking care of essentials

The first box is about safeguarding financial stability. "Allocate 30% of the bonus towards the most pressing liabilities, outstanding loan payments, credit card dues, insurance premiums, or overdue school fees. Clearing off high-interest debt not only reduces future outflows but also improves household cash flows," says Shinghal.

Importantly, topping up an emergency fund can be considered a 'Need', ensuring that the family is better protected against unforeseen circumstances. Using a portion for essentials ensures the bonus brings real relief alongside celebration.

Box 2: Wants (30%) – Satisfying festive aspirations

Festivals are for joy and sharing. "The formula sets aside 30% explicitly for wants like shopping, travel, family outings, new clothes, or that much-awaited gadget upgrade. By allocating a fixed sum for celebratory needs, families enjoy the festive glow guilt-free, without worrying about budget overruns or resorting to credit," says Shinghal. Children and elders alike can look forward to their wishes being fulfilled, and the festival retains its warmth without compromising tomorrow’s stability.

Box 3: Wealth (40%) – Investing in future growth

The largest share of the bonus is reserved for building wealth. As per Shinghal, 40% goes straight into investments—be that a new mutual fund SIP, lump-sum equity investment, gold bonds, or retirement instruments like EPF or PPF. "For some families, paying down the principal on a home loan or contributing to their child’s education fund is an ideal long-term move." Habitually investing a large chunk of every bonus amplifies compounding and unlocks future opportunities. This box transforms seasonal joy into multiyear financial progress.

According to analysts, the power of the formula lies in balanced decision-making. Needs reduce stress, Wants spark joy, and Wealth builds security. Pre-decided percentages keep overspending at bay, while flexibility lets families adjust allocations as circumstances evolve. Each box plays a unique role: immediate impact, emotional fulfilment, and future growth.