50/30/20 rule

A simple budget that splits take-home pay into 50% needs, 30% wants and 20% savings or extra debt payments.

The 50/30/20 rule is a starting point for dividing your take-home pay: about 50% for needs (rent, utilities, groceries, insurance, minimum debt payments), 30% for wants (eating out, hobbies, subscriptions), and 20% for savings and paying down debt faster.

It's a rule of thumb, not a requirement. In expensive cities, needs often take more than half, and that's okay. The useful part is seeing where your money goes and making sure some of it goes toward your future.