The 50/30/20 rule divides after-tax income into three buckets: 50% for needs (housing, utilities, minimum debt payments), 30% for wants (dining out, subscriptions, entertainment), and 20% for savings and extra debt paydown. It's a simple starting framework, not a rule that fits every situation, high-cost-of-living areas and irregular income both stretch it past its limits.
Want the full method? See the 50/30/20 rule explained for when it works, when it fails, and how to adapt the percentages.