The 50/30/20 Rule: A Simple Budget That Actually Works

Budgeting doesn’t have to be complicated. The 50/30/20 rule is one of the easiest ways to manage your money without feeling restricted.

Here’s how it works:

  • 50% Needs – Rent, groceries, utilities, transportation
  • 30% Wants – Dining out, entertainment, travel
  • 20% Savings – Emergency fund, investments, debt payoff

Why it works:

It gives you structure and flexibility. You still enjoy your life while building financial security.

Try this:

  • Use a budgeting app to split your income into these three categories.
  • Adjust monthly as your needs change.

Final Tip: Budgeting isn’t about being perfect—it’s about being aware. This method makes it easy to start and stay consistent.

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