Confused by budgeting? I was too. Spreadsheets, apps, “zero-based” nonsense — overwhelming.
Then I found the 50/30/20 rule. One number. Three buckets. Budget done in 5 minutes.
I used it to save $5K in 6 months on a $50K salary. Here’s how it works — with real numbers, free template, and zero stress.
What Is 50/30/20?
After taxes, split your income:
- 50% Needs (must-haves)
- 30% Wants (fun)
- 20% Savings/Debt (future you)
My $50K Salary Example
Take-home: ~$3,200/month
| Bucket | % | Amount |
|---|---|---|
| Needs | 50% | $1,600 |
| Wants | 30% | $960 |
| Savings | 20% | $640 |
Step 1: List Your Needs
Mine:
- Rent: $1,100
- Utilities: $150
- Groceries: $250
- Car + gas: $150
- Total: $1,650 → Over by $50!
Fix: Switched to Aldi → Groceries $200 → Back under $1,600.
Step 2: Wants (Be Honest)
- Dining out: $200
- Streaming: $40
- Shopping: $150
- Total: $390 → Cut to $300 → Extra $60 to savings
Step 3: Savings & Debt
Auto-split:
- Emergency fund: $300
- Credit card payoff: $200
- Retirement: $140
How to Set It Up (5 Mins)
- Open Ally Bank (free)
- Create 3 “buckets”: Needs, Wants, Savings
- Set auto-transfers on payday
Free 50/30/20 Template
Download Google Sheet → Plug in your numbers → Done.
Pro Tip: Review every 3 months. Life changes.
Alex Rivera | Contact