What is a 50 30 20 budget?

The 50-30-20 budget is divided into three parts. 50% for needs, 30% for wants, and also 20% for savings. And remember, you can always use a 50 30 20 calculator or even a 50 30 20 budget template to create yours. The 50% needs category is for all your monthly essentials. Essentials include things you simply cannot live without.

How do I use the 50/30/20 rule calculator?

Using the 50/30/20 rule calculator is entirely easy; all you need to do is enter your monthly after-tax income. Then, the calculator will tell you how to distribute your salary according to the 50/30/20 budgeting rule. You can use the 50/30/20 calculator backward as well.

What is a 50-30-20 budget?

Lastly, the 50-30-20 rule can help you stay focused on your financial goals and save up for large expenses such as a house or car. Alternatively, it can also help you create a debt reduction strategy if that’s one of your initial goals. The 50-30-20 budget is divided into three parts. 50% for needs, 30% for wants, and also 20% for savings.