Budgeting
The 50/30/20 Budget, Explained With Real US Numbers
The 50/30/20 rule splits your take-home pay into three buckets: 50% needs, 30% wants, 20% savings and extra debt payments. It survives because it has three rules, not thirty.
Watch this guide (video)
What counts where
- Needs (50%): rent, utilities, groceries, minimum debt payments, insurance, transport to work.
- Wants (30%): eating out, streaming, travel, upgrades.
- Savings (20%): emergency fund first, then extra debt payoff, then investing.
Real examples
- $2,400/mo take-home: $1,200 needs · $720 wants · $480 savings
- $3,200/mo: $1,600 · $960 · $640
- $4,500/mo: $2,250 · $1,350 · $900
Try your own number in the calculator on our homepage.
When rent breaks the rule
In high-rent cities, needs hit 60–70%. Don't quit — flip to 60/25/15 temporarily and protect some savings line, even $50/mo. A small automatic transfer beats a perfect budget you abandon.
The one setup that makes it stick
Three accounts: bills, spending, savings. Payday automation moves money before you can spend it. Review once a month, 15 minutes, coffee in hand.
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