Needs (50%)
—
Wants (30%)—
Savings/debt (20%)—
Split your monthly income into needs, wants, and savings using the 50/30/20 rule.
The 50/30/20 rule is a starting-point budgeting framework, not a strict rule — housing costs alone often exceed 30% of income in many cities.
needs = income × 0.5 · wants = income × 0.3 · savings = income × 0.2