The 50/30/20 Rule - Deepstash
The 50/30/20 Rule

The 50/30/20 Rule

It breaks down your budget categories into three broad segments:

  • 50%: Essential Expenses like housing, automobile expenses, groceries, insurance, utilities, etc.
  • 30%: Discretionary Expenses (Non-essential) like Dining out, entertainment, drinks, etc.
  • 20%: Financial Goals including mortgage, home, and educational savings.

If there is heavy credit-card debt, the financial goals should be 30% and non-essential spendings only 20%.

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"Money does not guarantee success." ~ Jose Mourinho

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It is a budget rule to help people reach their financial goals. It states that:

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The 50:30:20 budgeting method

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Under this method, 50 percent goes to expenses, 30 percent goes to wants, and 20 percent goes to a combination of debt and savings.

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With the 50/20/30 budgeting method:

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