The 50/30/20 rule divides after-tax income among needs, wants, and savings or debt payments. It is a starting framework, not a law.
Make it fit
High housing costs may require a different ratio. Track your actual expenses first, then set one improvement goal for the next month.
FAQ
What counts as a need?
Housing, utilities, food, transportation, insurance, and minimum debt payments usually qualify.
For a detailed plan, see our budgeting category.