# The 50/30/20 Rule

*Everyday Money — Finicade finance glossary*

A starter budget that splits take-home pay 50% needs / 30% wants / 20% saving.

A starter budget: 50% of take-home pay to needs, 30% to wants, 20% to saving or paying down debt. It's a starting point, not a law — in an expensive city needs might eat 60% — but the magic is that every dollar gets a job before the month begins.

**Also known as:** 50/30/20, 50-30-20 rule

**Related terms:** [Budget](https://finicade.com/glossary/budget), [Needs vs Wants](https://finicade.com/glossary/needs-vs-wants), [Pay Yourself First](https://finicade.com/glossary/pay-yourself-first)

**Taught in:** Money Basics — Where Does Your Money Go?

Source: https://finicade.com/glossary/50-30-20