50/30/20 rule
Definition
A simple budgeting guideline that splits after-tax income into 50% for needs, 30% for wants and 20% for savings and extra debt payments.
Example
On $4,000 of monthly take-home pay: $2,000 for needs, $1,200 for wants and $800 for savings and debt.
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General educational information, not personal financial advice. See our disclaimer.
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· Personal Finance
The 50/30/20 Rule Explained: A Simple Framework for Your Paycheck
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