Finance & Money
Popular
Budget Planner
Plan your monthly budget using the 50/30/20 or 70/20/10 rule.
Needs (housing, food, bills)
—
Wants (dining, entertainment)
—
Savings & Investments
—
Frequently Asked Questions
The 50/30/20 rule divides your after-tax income into three categories: 50% for needs (housing, food, utilities, transportation), 30% for wants (dining out, entertainment, shopping), and 20% for savings and debt repayment. It is a simple framework introduced by Senator Elizabeth Warren.
Start by calculating your monthly net take-home income. List all fixed expenses (rent, loan payments) and variable expenses (food, utilities). Subtract total expenses from income to see what is left. Use the 50/30/20 rule as a starting guide, automate your savings contribution on payday, and review monthly.