One paycheck, three jobs: needs, wants, future you.
Not sure? Estimate your take-home pay first.
The 50/30/20 rule is the simplest budget that actually works: 50% of take-home pay for needs (rent, bills, groceries), 30% for wants (dining out, fun, treats), and 20% for future you (savings and extra debt payments).
It is a guideline, not a law. Expensive city? Your needs might run 60% — then squeeze wants, never the 20%. That last slice is non-negotiable.
Needs keep your life running: housing, utilities, groceries, transport, insurance, minimum debt payments. Wants make life enjoyable: restaurants, subscriptions, shopping, travel. When in doubt, ask: would my life break without it this month?
Then the rule bends — high-cost cities break the neat math. Keep the spirit: cap wants ruthlessly and protect the 20% for savings. Even 10% saved beats 0%.
High-interest debt first (it grows faster than savings), then your emergency fund, then investing. One clear order removes all the guessing.