The 50/30/20 rule is a simple starting point: about 50% of take-home pay for needs, 30% for wants and 20% for savings and extra debt payments.
What goes where
- Needs: housing, utilities, groceries, transport, insurance, minimum debt payments
- Wants: eating out, entertainment, hobbies, upgrades
- Savings and debt: emergency fund, retirement, extra debt payments
Adjust it
In high-cost areas, needs may take more than 50%. That's common. Use the split as a guide, not a test you pass or fail.
General educational information, not personal financial advice. The Thrift Ledger isn't paid by any bank, lender or budgeting app.