💵 Monthly Income
$0
💸 Monthly Expenses
$0
Monthly Summary
Surplus: $0
Total Income
$0
Total Expenses
$0
Left to Save/Invest
$0
50/30/20 Rule Analysis (% of income)
Budget Guide
What is the 50/30/20 rule?+
The 50/30/20 rule is a simple budgeting framework: spend 50% of after-tax income on needs (rent, groceries, utilities, minimum debt payments), 30% on wants (dining out, streaming, vacations), and 20% on savings and debt repayment. It was popularized by Senator Elizabeth Warren in her book "All Your Worth." It's a guideline, not a law — adjust ratios based on your income level and local cost of living.
How do I start budgeting?+
Step 1: Calculate your net monthly income (after taxes). Step 2: List all fixed expenses (rent, loan payments — same every month). Step 3: Track variable expenses (food, gas, entertainment) for one month. Step 4: Compare income vs expenses. Step 5: Identify areas to cut. The most common mistake is underestimating variable expenses by 20-30%.
What is a zero-based budget?+
A zero-based budget assigns every dollar a job so that income minus expenses equals zero. You're not spending everything — savings and investments count as "expenses" in this system. Every month you start fresh and allocate income to categories before the month begins. It requires more discipline than the 50/30/20 rule but gives more control and awareness of where money goes.