The 50/30/20 Rule: A Simple Budgeting Framework

Simplify Your Finances

The 50/30/20 rule is an easy way to budget your after-tax income.

50% for Needs

Allocate half your income to essentials like housing, utilities, and groceries.

30% for Wants

Spend on non-essentials like dining out, hobbies, or travel.

20% for Savings and Debt

Put this toward savings, investments, or extra debt payments.

Why It Works

This framework balances necessity, enjoyment, and financial growth, making budgeting sustainable.

Try the 50/30/20 rule to streamline your finances without feeling restricted.