50%—Needs:
30%—Wants:
Source: Investopedia, The 50/30/20 Budget Rule Explained With Examples. The example shown here is for illustrative purposes only and should not be deemed as financial advice.
20%—Savings:
Rent/mortgage, car payments, groceries, insurance/healthcare, utilities, debt
50%
30%
Things that you can spend money on that are not essential such as clothing, tickets to events, travel, gadgets
Aim to allocate 20% of your net income to savings and investments. Ideally, you should have at least three months of emergency savings for unforeseen events.
20%