Monthly Budget Calculator

The 50/30/20 rule is a simple budgeting method where you allocate 50% of your after-tax income to needs (housing, utilities, groceries), 30% to wants (entertainment, dining out), and 20% to savings and debt repayment.

The 50/30/20 rule is a good starting point, but may need adjustment based on your circumstances. In high cost-of-living areas, needs might exceed 50%. Adjust the percentages to fit your situation while maintaining the principle of prioritizing savings.

Start with whatever you can save, even 5-10%. The goal is building the habit of saving consistently. Look for ways to reduce expenses in the wants category first, then evaluate if any needs can be reduced.

Use your net (after-tax) income for budgeting. This is the actual amount you receive in your paycheck and have available to spend and save.