
Financial Budget Rules
The beauty of the 50/30/20 budget rule is in its simplicity. All the income is broken up into three spending buckets: 50% for needs, 30% for wants, and 20% for savings and debt.

How to use it
- Step 1 : Figure out your take-home pay.
- Step 2 : Calculate your percentages.
- Step 3 : Adjust your spending and saving.
50% Needs
- Health, life, disability, and other insurance
- Car insurance, maintenance, and gas
- Medical bills and prescriptions
- Utilities, phone, and internet
- Public transportation
- Daycare and tuition
- Mortgage/rent
- Groceries
- Car payment
- Student loans
30% Wants
- Gifts
- Travel
- Cable TV
- Eating out
- Charitable donations
- Makeup and hair products
- Home decor and furniture
- Clothes, shoes, and accessories
- Movie, sports, and concert tickets
- Streaming services and other subscriptions
- Credit card bills
20% Savings
- College savings
- Retirement savings
- Personal loan payments
- Short-term savings goals
Most of your savings must in done in form of investments to meet future inflation.
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