50/30/20 rule
The 50/30/20 rule is a budgeting guideline that splits take-home pay into 50% needs, 30% wants and 20% savings and debt repayment.
Also known as: 50/30/20 budget, 50 30 20 rule
It is easy to remember and does not need detailed tracking. Needs include housing, utilities, food and minimum debt payments. Wants cover things like eating out and entertainment. The final 20% goes on saving and extra debt payments.
It is a guide, not a target. In areas with high housing costs, or if you are paying off debt, the percentages may need to be adjusted.
Our free budget planner can help you put this into practice, and nothing you enter is stored.
Related terms
This page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.