The 50/30/20 Rule
& Percentage Budgets
Tracking expenses as a percent of income is one of the simplest budget methods. The most common percentage budget is known as the “50/30/20 Rule.” See how different percentages work for your monthly income below.
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Monthly income
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$
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Spend
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Splurge
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Save
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Share
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included in Splurge
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About the 50/30/20 Rule
The 50/30/20 Rule is a spending plan that breaks down expenses into simple percentages: 50% needs, 30% wants, and 20% savings. These simple guidelines can be easier to stick to than other budgeting methods. The Brightfin app works with the same percentages in 4 words: Spend (needs), Splurge (wants), Save (savings), and Share (for gifts; included in Splurge).
Read more about how 50/30/20 compares to other budgets.
Our variations on 50/30/20
We wanted to make budgeting as simple as possible. We thought the 50/30/20 Rule was the most approachable, but we knew it wouldn’t work for everyone. So we came up with variations for different goals in the Brightfin app.
The Regular
50/30/20
Not sure where to start? The “50/30/20” rule works well for most people.
The Debt Crusher
50/20/30
Don’t let debt weigh you down! Make a dent while savoring the small splurges.
The YOLO
50/40/10
Life is short! Make the most of it while still building a habit of regular saving.
The Wealth Builder
40/20/40
If cutting back is no biggie, optimizing for savings now could be a smart move.
In this economy?
60/30/10
Inflation won’t take a vacation, but that doesn’t mean you can’t!
The FIRE
20/20/60
Earn financial independence by supersaving until you hit your big number.