Budget Planner

Use the 50/30/20 rule to allocate your after-tax income into needs, wants, and savings.

Monthly After-Tax Income ($)

Your take-home pay each month

Current Monthly Expenses ($) (optional, for comparison)

How much you currently spend each month

Needs (50%)

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Housing, food, utilities, insurance

Wants (30%)

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Dining out, hobbies, entertainment

Savings (20%)

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Emergency fund, retirement, debt payoff

Your Surplus / Deficit

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The 50/30/20 Budget Rule

Popularized by Senator Elizabeth Warren, the 50/30/20 rule divides your after-tax income into three buckets: 50% for needs (essential expenses you can't avoid), 30% for wants (discretionary spending), and 20% for savings and debt repayment. It's simple, flexible, and works for most people. If your needs exceed 50%, look for ways to reduce housing costs or increase income.