50/30/20 Budget Calculator
This budgeting method is perfect for those with little to no experience budgeting.
What is the 50/30/20 budget?
The 50/30/20 budgeting rule consists of splitting your after-tax income into three main categories: 50% on needs, 30% on wants and 20% on savings.
Needs: Half of your budget should be allocated to expenses you cannot do without. This category includes things like rent or mortgage payments, car payments, groceries, minimum debt payments, insurance, utilities and health care.
Wants: This category refers to all the things that are non essential for survival. Wants may include things like restaurants, movies out, expensive clothes, vacations, the latest iPhone and perhaps concert tickets.
Savings: You should always make room in your budget for savings, retirement and investments. In essence, you should be putting money aside for things like emergency fund, IRA and 401(k) contributions and investing in real estate or the stock market.
Keep in mind these categories are not set in stone, so feel free to adjust depending on your lifestyle and personal circumstances.