A beginning guide to the monthly 50/30/20 budgeting rules

Budgeting requires having a plan or a clear vision to achieve your goals. The 50/30/20 budget rule helps you achieve your financial goals. The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. Those will become part of your budget. You will be spending up to 50% of your after-tax income on needs and obligations and the remaining half should be split between savings and debt repayment (20%) and everything else that you might want (30%). The categories are designed to help you break down your spending and saving today's company.

The 50/30/20 budget rule

50% Needs 

Rent/ mortgage 
Car payments 
Groceries
Insurance 
Utilities

30% Wants 

Entertainment 
Shopping
Restaurants 
Travel 
Gym 
Streaming services 
Subscription services

20% Savings

Emergency fund
Investing 
Debt 
Retirement