50/30/20 Budget Calculator - Simple Income Budgeting
Split your income the smart way with the 50/30/20 budgeting rule: 50% for needs, 30% for wants, and 20% for savings. Our free calculator helps you create a balanced budget with inflation adjustment.
Features:
- • Automatic 50/30/20 budget split calculation
- • Monthly and annual income support
- • Detailed spending category breakdowns
- • Visual pie chart representation
- • Inflation-adjusted budgeting recommendations
- • Real-time calculation updates
How the 50/30/20 Rule Works:
The 50/30/20 budget rule is a simple, proven method for managing your money. It divides your after-tax income into three categories:
- 50% Needs: Essential expenses like housing, utilities, groceries, insurance, and minimum debt payments
- 30% Wants: Discretionary spending like dining out, entertainment, subscriptions, and hobbies
- 20% Savings: Emergency fund, retirement contributions, investments, and extra debt payments
Example: With a $5,000 monthly income, you would allocate $2,500 to needs, $1,500 to wants, and $1,000 to savings and debt repayment.
Category Examples:
Needs (50%): Rent/mortgage, utilities, groceries, insurance, transportation, minimum loan payments
Wants (30%): Dining out, entertainment, streaming services, gym membership, travel, hobbies
Savings (20%): Emergency fund, retirement (401k/IRA), investments, extra debt payments, education savings
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