What is the 50 30 20 budget rule?

The 50-30-20 rule is comprehensive and covers all bases. And don’t worry if math isn’t your thing because we’ve included 50 30 20 budget spreadsheet ideas to help you stay on top of your budgeting strategies. That said, let’s take a close look at this budgeting rule, including what it is and how it works.

What should be included in a 50-30-20 budget?

Arguably the most important category in the 50-30-20 budget is savings, as this can determine your future. Savings, in this case, refers to both savings and investments. Savings can take many forms ranging from your emergency cash to your savings account. It can also include any money market investments you have.

What are the three types of budgeting?

This budgeting method divides your spending and saving into three categories: needs (50%), wants (30%) and savings (20%). Needs in your budget are all the things that would majorly affect your life if you dropped them. Here are some examples: If those things are in your budget, you need to pay for them—so they fall into this section.