What is the 50/30/20 rule?
The 50/30/20 rule splits your monthly income into three categories:
- 50% for essential needs: Housing, food and bills.
- 30% for wants: Hobbies, going out and treating yourself.
- 20% for savings: Investing and putting money aside.
How do you use this calculator?
Enter your monthly income in the field. The calculator automatically splits your budget using the 50/30/20 rule.
Why use this method?
The 50/30/20 rule helps you balance your finances by dividing your income effectively. It gives you a clear view of your financial priorities.
If you'd like to know more, read this newsletter where I explain how to enjoy your money while preparing for the future.
Disclaimer: This calculator is for information only and does not constitute professional financial advice.