Simple 50/30/20 Monthly Budget Calculator

If you’re looking for an easy way to figure out how much money you should be spending on your needs, wants, and savings or retirement, this 50 30 20 budget calculator is what you need! 

To begin, enter your monthly take-home pay in the calculator below. The results will tell you how much of your take-home pay you should be budgeting for your: – Needs – Wants – Savings, Retirement, or Paying Off Debt

Simple 50/30/20 Calculator

What Is A 50/30/20 Budget?

A 50/30/20 budget is a simple formula that divides up your take-home pay into easy-to-understand chunks. This budget puts a focus on your needs, wants, and savings. 

What You Should Do With Your Result

After receiving your ideal percentages from the calculator, follow this rule to divide your monthly budget into the proper areas to avoid overspending. 

After you have your own 50/30/20 budget numbers from the calculator, look at your 50% needs category. For a reminder, needs are comprised of:

Needs Should Be 50%

– Food (not including eating out at restaurants) – Clothing (basic clothing – not the latest pair of Jordan’s) – Transportation (this could even be by bus or bicycle – not a BMW lease payment) – Utilities (water, gas, electric) – Minimum Debt Repayments (minimum payments needed to fulfill debt obligations such as credit cards) – Child Support – Alimony

Take your personal want number and make sure you can fit all of your wants within this budgeted amount. If you can’t, you either need to increase your income or cut back on some of your wants. 

Wants Should Be 30%

Typical wants include: – Entertainment – Vacation – Monthly Subscriptions – Daily Starbucks Habit

Savings Should Be 20%

In the most basic structure, you should be saving 20% of your income for retirement. However, many people still have crippling debt that is keeping them from saving. 

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