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50/30/20 RuleMonthly BudgetFree Tool

Budget
Builder

Enter your monthly take-home pay and split it across needs, wants, and savings. Adjust percentages and categories to build a budget that actually fits your life.

Monthly Take-Home Pay

Enter your net monthly income after tax

£/month
£0£10,000/mo

£1,000

Needs (50%)

£600

Wants (30%)

£400

Savings (20%)

50% Needs30% Wants20% Savings

Needs

£1,000

Essential expenses you cannot avoid

50%
Rent / Mortgage
£
Groceries
£
Utilities & Bills
£
Transport
£
Insurance
£
Minimum debt payments
£
Over budget£2

Wants

£600

Nice to have, but not essential

30%
Eating out & takeaways
£
Subscriptions (Netflix, Spotify…)
£
Clothing & shopping
£
Hobbies & entertainment
£
Gym & fitness
£
Holidays & travel
£

Savings

£400

Future you, investing, and emergencies

20%
Emergency fund
£
Stocks & Shares ISA
£
Pension (extra contributions)
£
House deposit fund
£
Other savings goals
£

Over budget

You're £2 over budget — reduce some categories.

£2

The 50/30/20 rule is a guideline, not a rule. If you live in London or have a high cost of living, your “needs” may naturally take more than 50%. Adjust the percentages to fit your reality. The goal is awareness — knowing where your money goes is the first step to taking control of it.

The 50/30/20 rule explained

50%Needs

Essential expenses: rent, utilities, groceries, transport, insurance, and minimum debt payments. These are non-negotiable — you need them to function. If your needs consistently exceed 50%, the answer is usually to increase income or find ways to reduce fixed costs like rent.

30%Wants

Lifestyle spending: eating out, subscriptions, clothes, hobbies, holidays. These improve your quality of life but aren't essential. This is also the easiest category to cut when money is tight. Ask yourself: 'Would I rather have this now, or be £200 closer to my savings goal?'

20%Savings

Future you: emergency fund, ISA contributions, pension top-ups, house deposit. Pay yourself first — move this money out of your current account on payday, before you can spend it. Even £50/month into a Stocks & Shares ISA started at 21 can grow significantly by retirement.