The 50/30/20 rule is a simple budgeting method that divides your income into three categories: needs, wants, and savings. According to this rule, 50% of your income should go towards needs, like rent and groceries. 30% should be allocated to wants, or non-essential items and activities. The remaining 20% should be set aside for savings or paying off debt. This method provides a balanced approach to managing your finances, ensuring that you cover your basic living expenses while also allowing for personal enjoyment and future financial security.
Here is a template to manage your money on the day-to-day basis and have recap of your months.