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Budget Calculator

Use the 50/30/20 rule to allocate your after-tax income across needs, wants, and savings - then see how your savings grow over time with compound returns.

$
Budget Rule
50% ($2,500)
0% ($0)80% ($4,000)
30% ($1,500)
0% ($0)60% ($3,000)
Savings & Investing20% ($1,000/mo)

Needs: Housing, utilities, groceries, insurance, minimum debt payments. Wants: Dining out, entertainment, subscriptions, travel. Savings: Emergency fund, retirement, investments, extra debt payments.

Monthly Savings

$1,000

20% of your income

Needs Budget

$2,500

50% of income

Wants Budget

$1,500

30% of income

Annual Savings

$12,000

5-Year Projection

$68,006

At 5% return

Monthly Budget Breakdown

$5,000per month
Needs
Wants
Savings

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Understanding the 50/30/20 Budget Rule

What is the 50/30/20 rule?

Popularized by Senator Elizabeth Warren in All Your Worth, the 50/30/20 rule is a simple budgeting framework. Allocate 50% to needs (housing, utilities, groceries, insurance), 30% to wants (dining, entertainment, subscriptions), and 20% to savings (emergency fund, retirement, investments, extra debt payments).

Is the 50/30/20 rule right for everyone?

The 50/30/20 rule works well as a starting point, but your ideal allocation depends on your goals and cost of living. In high-cost areas, needs may consume 60-70% of income. If you're aggressively pursuing FIRE (Financial Independence, Retire Early), you might flip to 30/20/50. Use the sliders above to find the split that fits your life.

How does saving 20% add up over time?

Saving 20% of a $5,000 monthly income ($1,000/month) invested at a 7% average return grows to approximately $173,000 in 10 years and over $520,000 in 20 years - thanks to compound interest. Even small increases in your savings rate create dramatic differences over time.

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