Retirement Calculator
Budget Your Monthly Spendings
About Budgeting Rules
The 50/30/20 rule is a simple budgeting method that divides your monthly after-tax income into three categories:
- 50% for needs: These are expenses that you absolutely must pay and are essential for survival, such as rent or mortgage payments, utilities, groceries, and transportation.
- 30% for wants: These are non-essential expenses, such as dining out, entertainment, and hobbies.
- 20% for savings and investments: This includes contributions to savings accounts, retirement accounts, and investments.
Other budgeting rules include:
- 80/20 rule: 80% of your income goes towards expenses, while 20% is saved or invested.
- 70/20/10 rule: 70% for spending, 20% for savings, and 10% for debt repayment or donations.