Split your take-home pay into needs, wants and savings with the 50/30/20 rule.
Needs (50%)
1,000.00
Wants (30%)
600.00
Savings and debt (20%)
400.00
The 50/30/20 rule
A simple way to split your take-home pay: 50% for needs (housing, utilities, food, transport, minimum debt payments), 30% for wants (eating out, hobbies, travel) and 20% for savings and paying off debt beyond the minimum.
Adjust it to your life
If housing alone takes more than half, aim for 60/20/20 and review it every few months.
The 20% is the part that changes your future: protect it first.
Track a few months of real spending to see where you actually are.
Frequently asked questions
Is it gross or net income?
Net: the money that reaches your account after taxes and deductions.
Where do subscriptions go?
Usually in wants, unless they are essential (internet you need for work, for instance).
What if my income is irregular?
Base the budget on your lowest typical month and treat anything above it as extra savings.
Indicative results. This is not financial advice.
Know how much you will have left at the end of the month
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