Split your take-home pay into needs, wants and savings with the 50/30/20 rule, then add your real spending to see how you compare.
Loading the tool…
What is the 50/30/20 rule?
| Share | Category | Examples |
|---|---|---|
| 50% | Needs | Rent or mortgage, bills, council tax, food shopping, transport, minimum debt payments |
| 30% | Wants | Eating out, subscriptions, hobbies, holidays, shopping |
| 20% | Savings and debt | Emergency fund, pension top-ups, investing, extra debt repayments |
Example on £2,400 a month
| Category | Target |
|---|---|
| Needs (50%) | £1,200 |
| Wants (30%) | £720 |
| Savings (20%) | £480 |
Use your take-home pay, after tax, National Insurance and pension contributions.
Making it work
- If rent pushes needs above 50%, try 60/20/20 or 70/20/10 for now.
- Build an emergency fund of 3 to 6 months of needs first.
- Pay off high-interest debt, such as credit cards, before investing.
- Set up savings to move automatically on payday.
Frequently asked questions
What is the 50/30/20 rule?
A simple budget: 50% of take-home pay on needs, 30% on wants and 20% on savings and debt.
Is the 50/30/20 rule realistic in the UK?
It can be hard with high rents, so adjust the percentages. The habit of saving something every month matters most.
Should pension contributions count?
Workplace pension taken from your pay is already excluded from take-home pay. Extra saving counts in the 20%.
Is my budget saved?
Yes, in this browser only. Nothing is uploaded.
Last updated: