50/30/20 rule
The 50/30/20 rule is a budgeting guideline: about 50% of take-home pay for needs, 30% for wants, and 20% for saving and extra debt payments.
By the MonthlyIQ team · Last updated 2026-09-28 · Editorial policy
What is 50/30/20 rule?
The 50/30/20 rule is a budgeting guideline: about 50% of take-home pay for needs, 30% for wants, and 20% for saving and extra debt payments.
Why it matters
It's a simple starting point, not a strict rule — adjust it to your costs and goals.
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General information only, not financial, tax, or legal advice. MonthlyIQ is not a bank or financial adviser.