50/30/20 Budget Rule

50 30 20 Budget Rule

The 50/30/20 budget rule is a simple framework to manage finances effectively by dividing your income into three main categories:

  • 50% for Needs: Essential expenses like mortgage, rent, utilities, groceries, gas, and insurance.
  • 30% for Wants: Non-essential spending on shopping, restaurants, entertainment, travel, gifts, and gym memberships.
  • 20% for Savings: Allocate towards building an emergency fund, retirement savings, or paying off debt.

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