Glossary · Personal Finance

50/30/20 Rule

Definition

The 50/30/20 rule is a budgeting guideline: 50% of income to needs, 30% to wants, and 20% to savings and debt.

What is 50/30/20 Rule?

The 50/30/20 rule is a budgeting guideline: 50% of income to needs, 30% to wants, and 20% to savings and debt.

How 50/30/20 Rule works

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Why 50/30/20 Rule matters

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Frequently asked questions