Budget Calculator (50/30/20 Rule)

This calculator helps you apply the 50/30/20 rule to your income, distributing it into needs, wants, and savings. Ideal for individuals looking to manage their finances efficiently.

Calculator

Results

Needs (50%): $0.00

Wants (30%): $0.00

Savings (20%): $0.00

Authoritative Content

Data Source and Methodology

This calculator is based on the 50/30/20 budgeting method popularized by Senator Elizabeth Warren. All calculations are derived from this framework.

The Formula Explained

Needs: $ \text{Income} \times 0.5 $

Wants: $ \text{Income} \times 0.3 $

Savings: $ \text{Income} \times 0.2 $

Glossary

Income: Your total monthly earnings.
Needs: Essential expenses like rent and groceries.
Wants: Non-essential expenses like dining out.
Savings: Money set aside for future needs.

FAQs

What is the 50/30/20 rule?

A budgeting method that allocates 50% of your income to needs, 30% to wants, and 20% to savings.

Why should I use this method?

It provides a simple framework for managing your finances effectively.