What is the 50/30/20 budget rule?

The 50/30/20 rule suggests allocating 50% of your after-tax income to needs (housing, utilities, groceries), 30% to wants (dining, entertainment, shopping), and 20% to savings and debt repayment. It provides a simple framework for balanced budgeting.

How do I start budgeting?

Start by calculating your monthly after-tax income using our pay calculator. Then list your essential expenses (needs), discretionary spending (wants), and financial goals (savings/debt). Use this budget calculator to allocate amounts and track whether you are on target.

What counts as needs vs wants?

Needs are essential expenses you cannot avoid: housing, utilities, groceries, transport, insurance, and minimum debt payments. Wants are discretionary: dining out, entertainment, subscriptions, and non-essential shopping. The line can be personal — be honest with yourself.

How much should I save each month?

The 50/30/20 rule suggests 20% of your after-tax income, which includes savings, extra debt repayments, and investments. If you cannot reach 20%, start with whatever you can and build up. Even 5-10% is a good starting point.

Budget Calculator

Plan your monthly budget using the 50/30/20 rule. Allocate your income to needs, wants and savings goals.

Your Income

Annual Salary (Pre-Tax)

Tax Year

Display As

Take-home pay: $5,868 monthlyTax: $1,632Super: $863

Budget Allocation$1,018 remaining

Needs (50%)

Wants (30%)

Goals (20%)

Needs (50%)

$3,350 / $2,934 ideal

Wants (30%)

$700 / $1,760 ideal

Goals (20%)

$800 / $1,174 ideal

Monthly Summary

Take-Home Pay$5,868

Needs$3,350

Wants$700

Goals$800

Total Allocated$4,850

Remaining$1,018

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