Split your monthly take-home pay into needs (50%), wants (30%), and savings (20%) using the popular 50/30/20 budgeting rule. See dollar amounts instantly.
Use your take-home pay — the amount that actually lands in your bank account after taxes and deductions.
The 50/30/20 rule is a simple budgeting framework popularized by Senator Elizabeth Warren. You divide your after-tax income into three buckets: 50% for needs, 30% for wants, and 20% for savings and debt repayment. Its appeal is simplicity — no tracking dozens of categories, just three targets you can check at a glance.
Needs are essentials you can't skip: housing, utilities, groceries, insurance, transport, and minimum debt payments. Wants are lifestyle choices like dining out, streaming, and travel. Savings covers your emergency fund, retirement contributions, investments, and any extra debt payoff beyond the minimums. If your needs run above 50% — common in high-cost cities — trim wants or boost income rather than skipping savings.