Budget Planner (50/30/20 Rule)
Create a balanced budget using the popular 50/30/20 rule. Enter your after-tax income and see how to divide it between needs, wants, and savings. Adjust the percentages to suit your situation.
Your take-home pay after tax and deductions
Adjust Your Split
Total must equal 100% (currently: 100%)
How to Use This Calculator
1. Enter your monthly after-tax income – The amount that hits your bank account.
2. View default 50/30/20 split – See the recommended allocation for needs, wants, and savings.
3. Adjust if needed – Customise percentages to match your situation (must total 100%).
4. Plan your spending – Use the dollar amounts as targets for each category.
FAQs
Budget Planning Questions
What is the 50/30/20 budget rule?
The 50/30/20 rule is a simple budgeting guideline: 50% of your after-tax income goes to needs (rent, groceries, utilities), 30% to wants (entertainment, dining out, hobbies), and 20% to savings and debt repayment. It provides a balanced approach to managing money.
What counts as 'needs' vs 'wants'?
Needs are essential expenses you can't avoid: housing, utilities, groceries, insurance, minimum debt payments, transport to work, and healthcare. Wants are everything else: streaming services, dining out, new clothes beyond basics, holidays, gym memberships, and entertainment.
What if I can't meet the 50% needs target?
In expensive cities like Sydney or Melbourne, housing costs alone can exceed 30% of income. If your needs exceed 50%, try to reduce them where possible (downsizing, switching providers) or adjust the percentages. The key is to still prioritise some savings.
Should I include super contributions in savings?
The 20% savings in the 50/30/20 rule typically refers to additional savings beyond compulsory superannuation. However, voluntary super contributions can count toward this goal. The important thing is building wealth beyond just mandatory super.
How often should I review my budget?
Review your budget monthly at first to build the habit and ensure categories are realistic. Once established, quarterly reviews work well. Always reassess after major life changes like new job, moving house, or having children.