Budget Planner
Split your take-home pay into needs, wants and savings with the 50/30/20 rule or your own split, then compare it with what you actually spend.
What is the 50/30/20 rule?
The 50/30/20 rule is a simple way to divide your monthly income, popularised by Elizabeth Warren and Amelia Warren Tyagi in their book All Your Worth:
- 50% for needs: the costs you must pay to live and work.
- 30% for wants: spending that makes life enjoyable but could be cut.
- 20% for savings: building an emergency fund, investing and paying off debt faster.
Always use your take-home pay, the amount that actually reaches your bank account after tax and deductions.
Needs or wants?
| Needs | Wants |
|---|---|
| Rent or mortgage payment | Eating out and takeaways |
| Groceries | Streaming and app subscriptions |
| Electricity, gas, water, internet | Clothes beyond the basics |
| Transport to work or school | Holidays and travel |
| Insurance and medical costs | Hobbies and entertainment |
| Minimum loan payments | Upgrading your phone or car |
A useful test: if you lost your income tomorrow, would you keep paying it? If yes, it is a need.
When to use a different split
- 60/20/20: for cities where rent alone takes a large share of income.
- 70/20/10: for tight budgets or when you are paying down debt.
- 40/30/30: for saving aggressively towards a big goal or early retirement.
The right split is the one you can keep up month after month. Start where you are, then move a few percent from wants to savings each time your income rises.
Budget Planner FAQs
Answers about the 50/30/20 rule and sorting your spending.
Is paying off debt a need or savings?+
Minimum required payments are needs, because you have to make them. Anything extra you pay to clear debt faster counts towards your 20% savings.
What if my needs are more than 50%?+
That is common where housing is expensive. Try the 60/20/20 or 70/20/10 split, then look at your biggest fixed costs, such as rent, transport and phone plans, for long-term savings.
Should I use my salary before or after tax?+
After tax. Budget with the money that actually reaches your account each month, because that is what you can spend and save.
Is my information saved?+
No. Everything is calculated in your browser and nothing is sent or stored. Only your currency choice is remembered on your device.
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