What is the 50/30/20 budget rule?

The 50/30/20 budget rule is a simple, popular framework for managing your after-tax income by dividing it into three main spending categories: Needs, Wants, and Savings/Debt Repayment. Here's how it breaks down:

✅ 50% for Needs

This is the largest portion and covers essential living expenses—things you must pay to live and work.
Examples include:

• Rent or mortgage payments

• Groceries

• Transportation (e.g., fuel, car payments, public transit)

• Utilities (electricity, water, gas)

• Insurance premiums

• Minimum debt payments
  
  

✅ 30% for Wants

This portion is for non-essential but enjoyable expenses—the things you like but could technically live without.
Examples include:

• Dining out

• Entertainment (movies, concerts, subscriptions)

• Hobbies

• Shopping for clothes, gadgets

• Travel and vacations
  
  

✅ 20% for Savings and Extra Debt Payments

This slice is focused on your financial future and reducing debt beyond the minimum.
Examples include:

• Emergency fund contributions

• Retirement savings

• Investments

• Extra loan or credit card payments

How TimelyBills Helps?

TimelyBills makes it easy to implement and adapt the 50/30/20 rule with powerful, flexible budgeting tools:

• Create separate budgets for Needs, Wants, and Savings by assigning specific categories to each.

• Set monthly budgets or use custom date ranges to reflect your financial habits.

• Track spending across all accounts or by individual account.

• Receive alerts when you approach spending limits, helping you stay disciplined.

• Use Group/Family Budgets to manage household finances in line with the 50/30/20 rule.

While the 50/30/20 rule is a great starting point, every financial situation is unique. With TimelyBills, you can customize your personal or family budget to fit your income, goals, and lifestyle.