Split your monthly after-tax income into needs, wants, and savings with the 50/30/20 rule.
Estimates only — not financial advice. Verify with your lender/advisor.
A budget calculator divides your monthly after-tax income into spending categories, so you can see exactly how many dollars to assign to needs, wants, and savings each month.
The 50/30/20 rule splits your monthly after-tax income into three buckets: 50 percent for needs such as housing, food, and utilities, 30 percent for wants such as dining out and entertainment, and 20 percent for savings and debt payoff. Results are estimates, not financial advice.
Multiply your monthly after-tax income by 0.50 for needs, by 0.30 for wants, and by 0.20 for savings. For example, on $5,000 of income that is $2,500 for needs, $1,500 for wants, and $1,000 for savings.
Yes. You can set your own percentages for needs, wants, and savings, but they should add up to 100 percent so the whole budget is allocated. If they do not total 100 percent, adjust the values until they do.