50/30/20

Definition: The 50/30/20 rule is a simple budgeting method that divides your income into three categories: 50% for needs, 30% for wants, and 20% for savings or debt repayment. It helps create a balanced approach to managing your finances.

Example: If your monthly income is $3,000, you’d allocate $1,500 to needs (e.g., rent and groceries), $900 to wants (e.g., dining out and entertainment), and $600 to savings or paying off debt.

Learn More:

• Check out our complete guide on using the 50/30/20 rule to create a balanced budget.