The 50/30/20 Budget: A 20-Minute Setup That Actually Sticks
The 50/30/20 method is simple: 50% Needs, 30% Wants, 20% Savings/Debt. Here’s a quick setup that you can finish today.
Step 1: Calculate your take-home
Add your last 2–3 months of net pay and divide by months. That’s your realistic monthly income.
Step 2: Set your targets
- Needs: 50% (housing, utilities, groceries, transport, minimum debt)
- Wants: 30% (dining out, entertainment, shopping)
- Savings/Debt: 20% (emergency fund, extra debt payments, investing)
Step 3: Give your dollars a job
Use one tracker you’ll actually open:
- Budget planner book (pen-and-paper wins for many)
- Cash envelope wallet for Wants control
- Pocket calculator for quick splits
Step 4: Trim 3 common leaks
- Subscriptions: cancel/rotate monthly
- Groceries: shop with a list and a meal-prep container routine
- Energy: use LED bulbs and a smart plug
Step 5: Automate the hard part
Schedule automatic transfers: paycheck day → savings (20%) → bills (Needs). What’s left is guilt-free Wants.
30-Day Challenge
- Lock in your percentages
- Track every transaction once per day (2 minutes)
- Report your savings total every Sunday
