50/30/20 Budget Planner

Understanding the 50/30/20 Rule

The 50/30/20 rule is a simple budgeting method that divides your after-tax income into three categories: Needs, Wants, and Savings. Here’s how it works:

1. Needs (50% of Income)Allocate 50% of your income to essential expenses that you must pay to live and work. (Examples: Rent, Utilities, Groceries, Transportation)
2. Wants (30% of Income)Allocate 30% of your income to non-essential expenses that enhance your lifestyle. (Examples: Dining Out, Entertainment, Shopping, Travel)
3. Savings (20% of Income)Allocate 20% of your income to savings and debt repayment beyond the minimum payments. (Examples: Emergency Fund, Retirement accounts, Investments)

Read more about this 50/30/20 budget rule in Elizabeth Warren's book, All Your Worth.

Note: This product does not offer financial advice.