What is the 50/30/20 budgeting rule?
The 50/30/20 rule splits after-tax income: 50% on needs (housing, utilities, food, transportation, insurance), 30% on wants (dining out, entertainment, hobbies, subscriptions), and 20% on savings and debt repayment beyond minimums. Simple framework — adjust ratios for your situation.
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The 50/30/20 rule splits after-tax income: 50% on needs (housing, utilities, food, transportation, insurance), 30% on wants (dining out, entertainment, hobbies, subscriptions), and 20% on savings and debt repayment beyond minimums. Simple framework — adjust ratios for your situation. The exact answer depends on your specific situation — the numbers above are a strong starting point, but the right next step is to plug in your actual figures.
For a deeper analysis, use one of the related tools below — they take your specific income, debt, location, and goals as inputs and produce a tailored answer.