What is a 50 30 20 budget?

The 50-30-20 budget is divided into three parts. 50% for needs, 30% for wants, and also 20% for savings. And remember, you can always use a 50 30 20 calculator or even a 50 30 20 budget template to create yours. The 50% needs category is for all your monthly essentials. Essentials include things you simply cannot live without.

What is the 80/20 budget?

The 80/20 budget assigns 20% of your net income to savings or debt repayment each month, while allocating the remaining 80% to wants and needs. It’s sometimes referred to as the “pay yourself first” budget, since you’re meant to take 20% off the top and put it into savings before paying bills or spending any money.

How do I calculate my 50 30 20 budget?

Another option is to set up your own 50 30 20 budget spreadsheet. If you’re great with Excel or Google Sheets, you’ll enter your post-tax income into a single cell and set up calculations to convert this into corresponding 50%, 30%, and 20% categories. Figuring out your budget doesn’t have to be difficult.