Budgeting 101: The 50/30/20 Rule

Once you know your net salary, the next step is managing it. The 50/30/20 rule is a popular budgeting framework: 50% for needs, 30% for wants, and 20% for savings or debt repayment. We show you how to apply this to your own income.

50% for Needs

This includes essential expenses like housing, groceries, utilities, and insurance.

30% for Wants

This category covers non-essential spending like dining out, entertainment, and hobbies.

20% for Savings and Debt

The final portion should go towards your emergency fund, retirement savings, or paying down high-interest debt.

By following this simple rule, you can ensure that you are living within your means while still planning for the future.