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50/30/20 budget

Split take-home pay into needs, wants and savings.

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Savings (20%)

$6,400.00

Put this aside first, not last

Needs (50%)
$16,000.00
Wants (30%)
$9,600.00
Weekly spending allowance
$2,215.38

How it works

A budget you can hold in your head. Enter your monthly take-home pay to get three numbers — and adjust the split if the classic ratio does not fit your rent.

Needs = 50% of income, Wants = 30%, Savings = 20%

Example: On 32,000 a month: 16,000 for needs, 9,600 for wants and 6,400 to save.

Questions people ask

What counts as a need?

Rent or mortgage, utilities, groceries, transport to work, insurance and minimum debt payments. Anything you cannot skip next month.

What if my rent is more than 50%?

Very common in expensive cities. Slide the split to something honest, like 60/20/20, and treat it as a target to fix over time.

Gross or net income?

Net — the amount that actually lands in your account after tax.

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