Simplify budgeting with the classic allocation strategy.

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50/30/20 Budget Rule

How it Works

1. State 'Monthly Income'. 2. View the breakdown for Needs, Wants, and Savings.

What is 50/30/20 Budget Rule?

Allocates income into three buckets: 50% Needs, 30% Wants, 20% Savings.

Step-by-Step Guide

  • Income – Net monthly pay.
  • Needs – 50% for essentials.
  • Wants – 30% for fun.
  • Savings – 20% for future.

Example

Input: $4,000 Income

Result: $2k Needs, $1.2k Wants, $800 Save

FAQ

What are Needs?

Rent, utilities, groceries, insurance, minimum debt payments.

What are Wants?

Dining out, hobbies, subscriptions, travel.

What counts as Savings?

Investments, emergency fund, extra debt payments.

Can I change percentages?

Yes, adjust based on cost of living (e.g., 60/20/20).

Is this net or gross?

Best used with Net (Take-Home) Pay.

⚠️ Important: Financial figures generated here are for planning purposes. Actual results may vary based on market conditions and individual circumstances.

Conclusion

Budgeting doesn't have to be complex. This simple framework ensures bills are paid and future self is funded, while still allowing guilt-free spending today.

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References & Standards

This calculator uses formulas and data standards from Standard References to ensure accuracy.

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