50/30/20 Budget
Split your monthly take-home pay into the popular 50/30/20 buckets: half for needs, a third for wants and a fifth for savings or debt. A simple framework to start budgeting today.
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Worked example
Needs 50%: $2,000.00 · Wants 30%: $1,200.00 · Savings 20%: $800.00
How it’s solved
Worked on the example above, step by step — follow along and you can do it on paper next time, no tool required.
- The 50/30/20 rule splits take-home pay into needs (50%), wants (30%) and savings/debt (20%).
- Needs = 50%
$4,000.00 × 0.5 = $2,000.00 - Wants = 30%
$4,000.00 × 0.3 = $1,200.00 - Savings = 20%
$4,000.00 × 0.2 = $800.00
Learn the method
Inputs
- Take-home $/mo
4000
Frequently asked
What counts as a 'need' vs a 'want'?
Needs are essentials like rent, groceries and utilities; wants are dining out, hobbies and subscriptions. Savings covers investing and extra debt payoff.
What if my needs exceed 50%?
Treat the split as a target. If needs run high, trim wants first and protect the savings bucket where you can.