Smart Budget Planning

The 50/30/20 Budget Rule

Build a balanced budget that covers your essentials, allows for fun, and grows your savings

How It Works

50%

Needs

Essentials like rent, utilities, groceries, insurance, minimum debt payments

30%

Wants

Lifestyle choices like dining out, entertainment, hobbies, subscriptions

20%

Savings

Emergency fund, retirement, investments, extra debt payments

Why This Works

Simple percentages are easy to remember and follow
Balances responsibility with enjoying life
Builds wealth consistently over time
Prevents overspending before it happens

Budget Calculator

Net Monthly Income (After Taxes) Your take-home pay after taxes and deductions. This is what actually hits your bank account.

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Savings Goals

Goal Name

Target Amount ($)

Saved So Far ($)

Weekly Contribution ($)

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Quick Savings Tips

Skip 2 coffees/week = $520/year saved
Cancel 1 unused subscription = $120-180/year
Cook 2 more meals at home = $1,200/year
Use the 24-hour rule for purchases over $50

Budget Tracker

Needs (50%)

Wants (30%)

Savings (20%)

Set your monthly income to track budget progress

Amount ($)

Merchant

Subscription Tracker

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Annual

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Budget Progress

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Example: $5,000/month Budget

Needs - $2,500

50% of income

Rent/Mortgage$1,500
Utilities$200
Groceries$400
Transportation$250
Insurance$150

Wants - $1,500

30% of income

Dining Out$400
Entertainment$200
Shopping$300
Subscriptions$100
Hobbies$500

Savings - $1,000

20% of income

Emergency Fund$300
401(k)/IRA$400
Investments$200
Extra Debt Payment$100
Annual Savings$12,000

Frequently Asked Questions

If you live in a high cost-of-living area, it's common for needs to exceed 50%. Consider adjusting to 60/20/20 or 55/25/20. The key is maintaining some savings and reducing wants proportionally.

Use your net (after-tax) income for budgeting. This is the actual money you have to work with. Pre-tax deductions like 401(k) can count toward your 20% savings.

Minimum payments on necessary debt (like your car) go under Needs. Extra payments to pay down debt faster go under Savings. Credit card minimum payments are Needs; extra payments are Savings.

The 50/30/20 rule is a starting point, not a strict requirement. Adjust based on your goals - if you want to retire early, increase savings to 30-40%. If you have high debt, temporarily allocate more to paying it down.