“Where did my paycheck even go?”
Ever whispered that while standing at the grocery store checkout… realizing your bank account looks like a sad meme?
Yup, I’ve been there too.
That’s where the 50/30/20 budget rule came in — and honestly, it changed everything.
It’s not just a budgeting trick.
It’s a mindset shift.
And the best part? It’s simple, doable, and doesn’t require a finance degree.
So grab a warm cup of coffee (or wine — no judgment here) and let me walk you through how this rule works — with real-life examples you’ll actually relate to.
The 50/30/20 rule is a simple budgeting method that breaks your after-tax income into 3 clear categories:
50% – Needs
30% – Wants
20% – Savings & Debt Repayment
Let’s break them down (with examples from my own life, because girl — I needed this to make sense too).
Needs are your non-negotiables — the bills and basics that keep your life running:
Rent or mortgage
Utilities (water, heat, electricity)
Groceries (like real food, not takeout sushi 😅)
Transportation (gas, car payment, transit)
Insurance (health, car, home)
Let’s say your after-tax monthly income is $3,000.
50% of $3,000 = $1,500 for needs
Here’s what it could look like:
Rent: $1,000
Groceries: $300
Utilities: $100
Car insurance: $100
💡 Tip: If your needs are taking up more than 50%, don’t panic — many of us are in that boat (hello, housing costs!). You might have to adjust your “wants” or tackle high-cost areas like rent through roommates, downsizing, or moving (if possible).
Wants are the nice-to-haves — not the must-haves. But they’re important too. Life isn’t meant to feel like punishment!
These include:
Dining out / Takeaway coffee
Netflix, Spotify, or Disney+
Gym membership
Shopping (yes, even those Amazon impulse buys)
Salon visits or self-care treats
30% of $3,000 = $900 for wants
My personal breakdown looked like this:
Friday night takeout: $80
Streaming services: $40
Nail appointment: $60
Clothing budget: $120
“Just because” fund: $100
And I still had $500 leftover to use however I liked.
❤️ Reminder: Wants are not evil. Women — especially moms — often feel guilty for spending on themselves. But joy matters. Sanity matters.
This is where the magic happens. This category builds freedom, peace of mind, and options. It includes:
Emergency fund
Retirement savings (IRA, 401k, etc.)
Extra debt payments (credit card, student loan, etc.)
Investment accounts
Big goal savings (vacation fund, house down payment)
20% of $3,000 = $600 for savings/debt
Here’s how I split mine:
$200 to credit card payments
$200 to emergency fund
$100 to vacation fund
$100 to Roth IRA
🌱 It didn’t feel like much at first. But month after month? That $600 added up to over $7,000 in a year.
Girl, same.
When I first started, my “needs” were more like 65%, and I barely had anything left for savings.
That’s okay.
The 50/30/20 rule is a guide, not a law. Use it as a starting point, then shift based on your real life.
Some months I did 60/20/20.
Other months, it looked like 70/15/15.
What matters is that I tried. I started paying attention. And that effort changed everything.
Let’s say you earn $3,500/month after tax.
Category | % | Amount | Examples |
---|---|---|---|
Needs | 50% | $1,750 | Rent, groceries, gas, car insurance |
Wants | 30% | $1,050 | Takeout, clothes, streaming, gym |
Savings/Debt | 20% | $700 | Emergency fund, credit card, vacation |
If you’re a mom, a student, or working part-time, your income might be lower — but the principle stays the same.
Because we’re often managing everyone else’s needs while putting ours last.
This method gives structure without guilt.
It tells you:
✅ Yes, you can save.
✅ Yes, you can treat yourself.
✅ Yes, you can pay bills — without losing your mind.
It’s budgeting that feels like self-care. 💖
You don’t need a fancy spreadsheet.
You don’t need to get it perfect.
You just need to begin.
Whether you’re a single mom in Texas, a student in Toronto, or a stay-at-home-mum in the UK — this rule works because it’s flexible.
Start with what you have.
Adjust as life shifts.
And remember — budgeting isn’t about restriction. It’s about freedom.
👉 Click Here to Get It — Perfect for sticking on your fridge or planner!
Don’t forget to save this post so you can come back to it when you sit down with your next paycheck! 📎💸