Finance
Budget Planner
Build your monthly budget from scratch. Add custom expense categories, compare against the 50/30/20 rule, and auto-save everything to your device.
FAQ
Frequently asked questions
What is the 50/30/20 rule?
The 50/30/20 rule divides your after-tax income into three categories: 50% for Needs (housing, food, transport, insurance, minimum debt payments), 30% for Wants (entertainment, dining out, subscriptions, hobbies), and 20% for Savings (investments, emergency fund, extra debt payments). It is a simple framework popularized by Senator Elizabeth Warren.
How much should I spend on rent?
The traditional guideline is no more than 28-30% of gross income on housing. Under the 50/30/20 rule, housing falls under Needs which totals 50% — so housing should ideally be well under 50% to leave room for other necessities like food, transport, and insurance.
What is a healthy savings rate?
A minimum of 20% is recommended. For early retirement or aggressive wealth building, aim for 30-50%+. Even 10% saved consistently from age 25 compounds significantly. Increase your rate with every raise. Above 20% is excellent, 10-20% is good, below 10% means you are at risk.
How do I budget on an irregular income?
Use your lowest recent monthly income as your baseline budget. In high-income months, put the excess into savings or debt payoff. Some people use a "buffer account" — deposit all income there, then pay yourself a fixed monthly salary from it to smooth out irregularity.
What is the difference between needs and wants?
Needs are expenses required for basic living and obligations: housing, utilities, groceries, health insurance, minimum debt payments, basic transport. Wants are discretionary: streaming, dining out, gym, vacations, upgrades. The line is personal — a car may be a need in rural areas but a want in a city with transit.