Finance

Budgeting with 50/30/20

A simple split that survives real life.

The 50/30/20 rule splits take-home pay into 50% needs (rent, food, transport), 30% wants (eating out, subscriptions), and 20% savings and debt payoff.

It works because it's coarse. Rules with 14 categories collapse the first time you have an unexpected car repair; three buckets survive.

If your needs exceed 50%, the fix is usually structural — housing or transport — not skipping coffee.