Enter your monthly income and expenses to see exactly where your money goes and whether your budget is balanced. Based on the 50/30/20 framework.
The 50/30/20 rule is one of the most popular budgeting frameworks. It divides your after-tax income into three categories: 50% for needs (housing, food, bills), 30% for wants (dining out, entertainment, hobbies), and 20% for savings and debt repayment.
It is a flexible guideline, not a strict rule. High cost-of-living areas may require more than 50% for needs, and that is perfectly fine as long as you are still saving consistently.
A need is something you cannot live or work without: rent, groceries, utilities, transportation to work, minimum debt payments. A want is everything that improves your life but is not essential: restaurants, Netflix, new shoes, vacations.