What counts as a need, a want, or savings?
- Needs (50%) — things you must pay to live and work: rent or mortgage, utilities, groceries, insurance, getting to work, minimum payments on debts.
- Wants (30%) — things you choose: eating out, takeaway coffee, streaming, clothes beyond the basics, trips, hobbies.
- Savings & debt (20%) — an emergency fund, retirement contributions, and paying debt off faster than the minimum.
Examples
| Take-home pay / month | Needs 50% | Wants 30% | Savings 20% |
|---|---|---|---|
| US$2,500 | US$1,250 | US$750 | US$500 |
| £1,800 | £900 | £540 | £360 |
| ₹40,000 | ₹20,000 | ₹12,000 | ₹8,000 |
When 50/30/20 doesn't fit
In expensive cities rent alone can take half of a first salary. That's common, not a failure: shrink the wants share first (for example 60/20/20 or 65/25/10) and keep some savings every month, even a small amount. If you have high-interest debt, many people put extra toward it before building savings beyond a small emergency buffer — what's right for you depends on your situation.
General information only — not financial, tax or investment advice. For decisions about debt, investing or taxes, talk to a qualified professional.
Put it into practice
Open the monthly budget tracker, put rent, bills and savings under Fixed costs, spread the wants share across the Variable costs, and track what you spend. Prefer paper? Use the printable budget worksheet. Your data stays in your browser — see privacy & help.