What is the 50/30/20 budget rule?

[Tunde]

The 50/30/20 rule helps in dividing our income into three proportions, with 50% going into needs, 30% going for wants and 20% saved or used to repay debts. This is a basic method that helps us to be in control of our spending and to build our financial security in the long-run.

[MarketMavin]

I use this rule too. It's good since it is easy to practice and also lets you stay disciplined on your spendings. I sincerely recommend it.

[Bola]

Yes, that rule makes sense but you may need to tweak the percentages a little bit based on different personal situations. That's what I do too!