Smart Budget Planner
Evidence-Based Formula
Financial Advisor Approved
What is the 50/30/20 Rule?
The 50/30/20 rule is a simple and effective budgeting method recommended by financial advisors worldwide. It divides your after-tax income into three categories:
50% Needs
Essential expenses like rent, utilities, groceries, transportation, insurance, and minimum loan payments.
30% Wants
Non-essential expenses like dining out, entertainment, hobbies, subscriptions, and shopping.
20% Savings
Emergency fund, investments, retirement accounts, and debt payments above the minimum.