Put in your monthly take-home pay and see the three buckets.
Needs · 50%
$0.00
Rent or mortgage, utilities, groceries, insurance, minimum debt payments, gas.
Wants · 30%
$0.00
Eating out, streaming, hobbies, shopping, trips, anything you could live without.
Savings & extra debt · 20%
$0.00
Emergency fund, retirement, paying off debt faster than the minimum.
The rule is a simple way to divide your pay after taxes: half for the things you have to pay, about a third for the things you enjoy, and the rest for savings or paying debt down faster. It is a starting point, not a strict rule — if your rent is high, borrow from the wants bucket for a while.
Once you know your three numbers, add your real bills and income on the budget page to see what is actually left each month.