Budget planner: 50/30/20 and other budgeting rules

The 50/30/20 rule says half your money goes to needs, 30% to wants, and 20% to savings and debt payoff. It's a decent starting point, but it isn't the only one, and it doesn't fit everyone. Use the planner below to try it and its popular variations on your own numbers.

Start from your take-home pay, what lands in your account after tax, not your gross salary. Gross overstates what you have by 20% to 30%.

Budget rules compared

All of these split your after-tax income into a few big buckets. They differ in how much they protect for savings, debt, and everyday costs.

50/30/20: the classic

50% needs, 30% wants, 20% savings and debt payoff. A balanced default when your essential costs are about half your pay.

60/30/10: for higher living costs

60% needs, 30% wants, 10% savings. It moves 10 points from savings into needs, which suits anyone whose rent, insurance, and groceries take more than half of their pay. The tradeoff is slower savings.

70/20/10: for paying down debt

70% living expenses, 20% debt payments, 10% savings. It separates debt repayment from savings, so you can see both clearly. It's helpful if you carry debt or your essentials run high.

80/20: the hands-off version

Put 20% into savings or investments the moment you're paid, and spend the other 80% however you like. No categories to track, which makes it easy to keep up.

50/20/30: savings first

The same totals as 50/30/20, written with savings ahead of wants. Nothing changes in the math. What changes is the mindset: saving is a priority, not whatever is left over.

75/15/10: when needs exceed half your income

75% needs, 15% long-term savings (like retirement), 10% short-term savings (like an emergency fund). It removes the wants category to build savings faster. It's a tight plan, so it's best for a season of your life, not forever.

Which one should you pick?

Add up what you spend on needs each month and divide by your take-home pay. Under 50% points to 50/30/20. Between 50% and 60% points to 60/30/10. Higher than that, 70/20/10 or 75/15/10 keeps the plan realistic. Type your needs total into the planner and it will suggest one.

If your needs are over budget, check three things first: recurring subscriptions, your electric bill, and grocery spending. These are the places where small changes add up without hurting your life.

Make it automatic

Set an automatic transfer to savings for the day after payday. Money you never see in checking is money you don't spend, and then the budget only has to manage what's left.

General information, not financial advice. These are rules of thumb, so adjust them to your situation.

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