What is the 50/30/20 rule?
Needs (50%) are the things you must pay: rent or mortgage, utilities, groceries, insurance, minimum debt payments and getting to work.
Wants (30%) are the nice-to-haves: eating out, streaming, shopping, hobbies and holidays.
Savings & debt (20%) is your future: an emergency fund, savings goals, retirement, and any debt payments above the minimum.
What if my needs are more than 50%?
That's very common, especially with high rent. Treat 50/30/20 as a starting point, not a rule you've failed. Many people begin with 60/30/10 or 70/20/10 and shift slowly as income grows or costs come down.
The goal is simply to see the balance clearly, then nudge it in the right direction.
