How to Use This Budget Planner
Enter your monthly income and expenses on the left. The panel on the right updates live, comparing your actual spending against the 50/30/20 rule \u2014 a well-known guideline for balancing a household budget.
- 50% for Needs: Rent or mortgage, groceries, utilities, transport, health cover \u2014 the things you can't easily avoid.
- 30% for Wants: Entertainment, dining out, and lifestyle spending.
- 20% for Savings/Debt: Personal loan and credit card repayments, plus voluntary savings or investing.
Tips for Success
- Use "Net" Income: Always enter your take-home pay (after tax), not your gross salary.
- Annual Costs: Divide one-off expenses (like car registration or annual insurance) by 12 and include them here as a monthly figure.
- Build an emergency fund: A commonly cited guideline is having 3 to 6 months of essential expenses in accessible savings, as a buffer against job loss or unexpected costs.
Frequently Asked Questions
It's a general guideline, not a strict rule. People with high housing costs, such as those in expensive rental markets, often exceed 50% on needs and that's not necessarily a problem \u2014 it's a starting point for reflection, not a pass/fail test.
The 50/30/20 rule groups debt repayment together with savings because both are about improving your financial position, rather than day-to-day living costs. Paying down debt faster than the minimum is, in effect, a form of saving.
A commonly cited range is 3 to 6 months of essential expenses, though the right number depends on job security, whether you have dependents, and other personal circumstances. This calculator gives you a starting estimate based on your entered expenses.
It means your entered expenses exceed your entered income for the month. Worth double-checking every figure is genuinely monthly (not annual or weekly), then looking at your Wants category first, since it's usually the most flexible.