Monthly Budget Planner - 50/30/20 Rule | FinanceMetricX
Plan your monthly budget using the 50/30/20 rule. Allocate income to needs, wants, and savings with category breakdowns.
Your monthly salary after tax deductions
How It Works
What is the 50/30/20 Rule?
The 50/30/20 rule is a simple budgeting framework. Allocate 50% of your after-tax income to needs (essentials), 30% to wants (discretionary), and 20% to savings and debt repayment. It works as a starting point — adjust based on your situation.
What Counts as "Needs"?
Needs are expenses you cannot avoid: rent or home loan EMI, groceries, utilities, health insurance, transport to work, and minimum debt payments. If removing an expense would seriously affect your daily life, it is a need.
What Counts as "Wants"?
Wants are things that improve your quality of life but are not strictly necessary: dining out, streaming subscriptions, new clothes beyond basics, vacations, and hobbies. These are the first to cut if you need to save more.
Making the 20% Savings Work
- Automate SIP investments on salary day so savings happen first.
- Build 3-6 months of expenses as an emergency fund before investing aggressively.
- If you have high-interest debt (credit cards), prioritize paying it off within the 20%.