Planning

Budget Planner

Apply the 50/30/20 rule to your income and see exactly where your money is going each month.

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Needs — 50% ($2,500.00 recommended)

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Wants — 30% ($1,500.00 recommended)

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Savings & Debt — 20% ($1,000.00 recommended)

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50/30/20 Analysis

NEEDS
60%
of $2,500.00 target
WANTS
18%
of $1,500.00 target
SAVINGS
20%
of $1,000.00 target
Needs (50% target)
Recommended: $2,500.00
$3,000.00
+$500.00
Wants (30% target)
Recommended: $1,500.00
$910.00
$-590.00
Savings / Debt (20% target)
Recommended: $1,000.00
$1,000.00
$0.00
Monthly surplus
$90.00
Income $5,000.00 − Total spending $4,910.00

The 50/30/20 rule

Why 50/30/20?

A simple, flexible framework popularized by Senator Elizabeth Warren. 50% for needs, 30% for wants, 20% for savings and debt. Adjust ratios for your situation.

Needs vs wants

Housing, food, utilities, and minimum payments are needs. Dining out, streaming, and travel are wants. The line is sometimes blurry — be honest with yourself.

High cost-of-living areas

In expensive cities, housing alone may exceed 50% of income. Adjust the framework — reduce wants to 20% and protect savings at 10-15% minimum.

Surplus strategy

Use surplus to build emergency fund first, then pay high-interest debt, then max retirement accounts. Every dollar of surplus has a more powerful destination than discretionary spending.

For educational purposes only. Not financial advice.