Budget Planner (50/30/20)
Plan your monthly budget using the 50/30/20 rule with color-coded targets vs. actuals.
Plan your monthly budget using the 50/30/20 rule with color-coded targets vs. actuals.
| Category | Budgeted ($) | Actual ($) | Difference ($) | % of Income |
|---|---|---|---|---|
| Housing (50%) | — | — | ||
| Food | — | — | ||
| Transport | — | — | ||
| Entertainment (30%) | — | — | ||
| Savings (20%) | — | — | ||
| Other | — | — |
A simple budgeting framework that allocates 50% of after-tax income to needs (housing, food, utilities), 30% to wants (entertainment, dining out), and 20% to savings and debt repayment.
Needs ≤ 50% | Wants ≤ 30% | Savings ≥ 20%On a $5,000 monthly budget: up to $2,500 goes to needs, $1,500 to wants, and $1,000 to savings or debt payoff. Tracking actuals against these targets helps identify overspending early.
In cities where housing alone exceeds 40% of income, the 50/30/20 rule may need adjustment. Consider a 60/20/20 split temporarily while working toward lower housing costs or higher income.
Differences are computed as Budgeted − Actual. Positive values indicate underspending (good); negative values indicate overspending. Savings rate is calculated as (Income − Total Actual) / Income × 100.