What is the 50-30-20 rule?

It is a financial organization method that splits income into: 50% for essential needs, 30% for personal wants and 20% for savings and investments.

How do I use the calculator?

Enter your net monthly income and the calculator automatically shows how much to allocate to each category according to the rule.

Can I adjust the percentages?

The 50-30-20 rule is a reference. You can adapt the percentages to your financial situation and goals.

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50-30-20 Rule

Organize your budget with the most efficient method

How does the 50-30-20 Rule work?

Popularized by Elizabeth Warren and recommended by financial experts, this rule divides your income into three categories:

50%

Needs

30%

Lifestyle

20%

Savings

Your Monthly Income

Enter your net monthly income (after taxes)

Adjust Subcategories

The percentages below are based on expert recommendations. Adjust according to your reality, keeping the total at 100%.

🏠Basic Needs (50%)

100%

🏠Moradia

🛒Alimentação

🚗Transporte

🏥Saúde

📚Educação

🎯Lifestyle (30%)

100%

🏖️Lazer/Férias

🍔Restaurante/Delivery

💅Despesas Pessoais

🐾Pets

🎁Presentes e Doações

💰Savings (20%)

100%

🛡️Reserva de Emergência

📈Investimentos

About the 50-30-20 Rule

The 50-30-20 rule is a simple and effective personal budgeting method. It was popularized by US Senator Elizabeth Warren in her book "All Your Worth: The Ultimate Lifetime Money Plan".

The three pillars:

50% - Needs: Essential expenses such as housing, food, transportation, healthcare and education. These are expenses you cannot avoid.
30% - Lifestyle: Non-essential expenses that improve your quality of life, such as entertainment, dining out, subscriptions and hobbies.
20% - Savings: Emergency fund and investments for the future. Also includes paying off debts beyond the minimum.

Financial experts recommend adapting this rule based on your local economic reality, especially considering housing costs in major cities.