Women of Medicine

Simple Budget

Know where your money is going – and make a plan for where you want it to go. The 50/30/20 budget breaks down your monthly after-tax income into 50% needs, 30% wants, and 20% savings and debt repayment.

THE 50/30/20 BUDGET




Your 50/30/20 numbers:

How to use the 50/30/20 budget:

  1. Monthly after-tax income - this is the number after taxes have been deducted from your gross income. The 50/30/20 rule is a popular method used to budget your income towards 50% needs, 30% wants, and 20% for savings and debt repayment.
  2. 50% needs - this means fixed expenses for necessities, which may include: housing, food, transportation, utilities, insurance, minimum debt payments, childcare, etc.
  3. 30% wants - this could include: eating out, travel expenses, shopping, concert tickets, etc.
  4. 20% savings and debt - this is the bucket where you put away money for the future such as: an emergency fund, retirement accounts, and paying off consumer debt, etc.