The 50/30/20 Rule
The 50/30/20 Rule is a super simple budgeting method to manage your money effectively. It breaks down your monthly income into three main categories: 📊 Breakdown of the 50/30/20 Rule: 50% Needs 🏠 Essentials you must pay for to live. Examples: Rent / Mortgage Utility bills (electricity, gas, water) Groceries (basic food items) Transportation (fuel, bus fare, car loan) Minimum debt payments 30% Wants 🎉 Non-essentials that improve lifestyle. Examples: Dining out Shopping (clothes, gadgets) Entertainment (Netflix, concerts, trips) Hobbies & leisure 20% Savings & Debt Repayment 💰 Future security and financial growth. Examples: Emergency fund Investments (stocks, mutual funds, crypto) Retirement savings Extra debt payments (to clear loans faster) 🧮 Example: If your monthly income = 100,000 PKR 50% Needs = 50,000 PKR 30% Wants = 30,000 PKR 20% Savings = 20,000 PKR ✅ Why It’s Useful: Easy...
