The Basic Framework

The 50/30/20 rule divides your after tax income into three buckets. 50% for needs like housing, utilities, groceries, insurance, and minimum debt payments. 30% for wants like entertainment, dining out, and hobbies. 20% for savings and extra debt payments.

When It Doesn't Work

In high cost of living areas, 50% for needs might be laughably low. If your rent alone is 40% of your income, the math doesn't math.

Making It Your Own

Use the framework as a starting point, then adjust based on your priorities and constraints. The goal is progress toward balance, not perfect adherence to arbitrary percentages.

See Your Actual Split

Spendify automatically categorizes your spending and shows you your actual ratios.