ENES

Budget Planner

Use the 50/30/20 budgeting rule to allocate your take-home pay. Enter your monthly income to see exactly where your money should go.

Your 50/30/20 Budget

🏠
Needs
50% of income
-
🎉
Wants
30% of income
-
💰
Savings
20% of income
-

Visual Breakdown

Needs
50%
-
Wants
30%
-
Savings
20%
-

Category Examples

Needs (50%)
  • Rent / Mortgage-
  • Groceries-
  • Utilities-
  • Insurance-
  • Transportation-
Wants (30%)
  • Dining Out-
  • Entertainment-
  • Shopping-
  • Subscriptions-
  • Hobbies-

What Is the 50/30/20 Rule?

The 50/30/20 rule is a simple budgeting framework popularized by Senator Elizabeth Warren. It divides your after-tax income into three categories:

  • 50% Needs: Essential expenses like rent, groceries, utilities, insurance, and minimum debt payments.
  • 30% Wants: Non-essential spending like dining out, entertainment, subscriptions, and shopping.
  • 20% Savings: Savings, investments, emergency fund contributions, and extra debt payments.

How Much Rent Can You Afford?

The general guideline is to spend no more than 30% of your gross (pre-tax) monthly income on rent. This ensures you have enough left for other expenses, savings, and emergencies. In high-cost cities, many people spend up to 40%, but this leaves less room for other financial goals.

Related Tools

Use our Salary Calculator to find your monthly pay, or the Tax Calculator to estimate your take-home pay before budgeting.