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Budget Calculator (50/30/20)
A budget is not about restriction, it is about giving every dollar a job. The 50/30/20 rule is the simplest framework to start: half to needs, a third to wants, the rest to your future.
50/30/20 Budget Calculator
Give every dollar of your take home pay a job.
How the 50/30/20 rule works
- 50% needs: rent, utilities, groceries, insurance, minimum debt payments.
- 30% wants: dining out, hobbies, travel, the fun stuff.
- 20% savings and debt: emergency fund, extra debt payoff, and investing.
It works on your take home pay (after taxes). The percentages are a starting point, not a law, and the value is in consciously assigning every dollar before the month begins.
When to adjust the ratios
In a high cost of living area, needs might run above 50%, so trim wants to keep saving. Paying off high interest debt or chasing an early retirement goal? Push the savings slice higher. The framework should bend to your life, not the other way around. What matters is that the savings bucket is never zero.
For educational use only. Not personalized financial advice.