How much to save from your salary? The 50/30/20 rule in practice
A simple budget frame that works without spreadsheets. This overview shows how a salary can be split between needs, wants and savings — and what shifts that ratio.
This text was created or edited with the help of artificial intelligence and passed human editorial review before publication. Always verify figures, prices and terms against the current conditions of the specific provider.
What to weigh up
- The figures usually quoted are ~50 % of net income for needs, ~30 % for wants, ~20 % for savings and debt. Would that have matched your last payslip?
- They are guidelines, not doctrine. With a high rent the first share stretches at the expense of the others — which of the three gives way for you?
- Savings can go out right after payday or come from whatever is left at the end of the month. The first is predictable, the second more flexible. Which has actually worked for you lately?
- When pay rises, the difference can go to savings or to lifestyle. Both are legitimate — which of them are you missing more today?
Try it yourself
Step 1 of 3
What is your net monthly income?
What to work out before you decide
- 1.Your net income and how it actually split last month — not the plan, but what really left the account.
- 2.Whether you want savings automated on payday, or the decision kept open each month.
- 3.What you will do with the next pay rise. Deciding in advance is easier than deciding in the month the money arrives.
You can live through this decision
In the “First Job” track you reach the same choice — and see where it takes you a few years on.
This is not financial advice. Numbers are illustrative and for educational purposes only. Always verify current conditions with your provider before making any financial decision.