โ
Needs โ 50%
โ
Wants โ 30%
โ
Savings / debt โ 20%
The 50/30/20 rule splits take-home pay into needs (rent, food, bills, transport), wants (eating out, entertainment) and savings or debt repayment. Adjust to your own situation.
Frequently Asked Questions
What is the 50/30/20 budget?
A simple budgeting rule: spend about 50% of take-home pay on needs, 30% on wants, and put 20% toward savings or paying off debt.
Split your monthly income into needs, wants and savings with the 50/30/20 rule.