50/30/20 BUDGET PLAN

What is the 50-30-20 budget system?

The 50-30-20 budget is a personal budgeting plan made popular by Elizabeth Warren in her 2005 book, “All Your Worth: The Ultimate Lifetime Money Plan”.

It’s a very simple way of breaking down your income into 3 categories. Needs 50%, Wants 30% and Savings 20%.

50 30 20 Budget Calculator

50 30 20 calculators are used to calculate your savings and how your savings and spendings coincide with your net income. Using your net income (income after tax) gives you a clear breakdown of where your spending should be each month. Use our quick 50 30 20 budget calculator to see how your income breaks down.

  • Are you spending more or less in any of the 3 areas?
  • Where do you think you could do better?
  • Do you think you are totally lost with your personal budget?
  • If you need help fill in our free financial review. One of our advisors will review and come back with some suggestions. 

While everyone is different this 50 30 20 budget calculator can give you a quick idea of what your monthly spending should look like. The breakdown of each category are:

Needs of 50 30 20 budget: The must-haves of everyday life. Include the costs required to live.

  • Rent/Mortgage
  • Utility Bills
  • Groceries
  • Transport to and from work/school
  • Minimum debt repayments

Wants of 50 30 20 budget: The extras we spend every day but are not essential to life.

  • Takeaway coffees,
  • Weekends away,
  • Holidays,
  • Dining out,
  • Evenings out,
  • Gym memberships,
  • Subscription services (Netflix, Amazon Prime, Expensive tv packages).

    Savings in 50 30 20 budget: This is the amount you should be saving every month. You can use it for other things as well.

    • Pay down any debt,
    • Build your emergency fund (3 months, then 6 months),
    • Build long-term savings and pension funds.
    50 30 20 Budget
    Debbie Cheevers

    Debbie Cheevers

    Qualified Financial Advisor

    Debbie was born in Dublin and graduated from NCAD with a degree in Visual Communication. She brings a strong customer services background to Greenway.

    Debbie qualified as APA in 2017 and a fully qualified financial advisor (QFA) in 2018.

    She believes that product knowledge is key to helping customers make the right choices.

    Free Call with Financial Advisor
    Get a Financial Advisor To Review Your Personal Circumstances & Give You The Best Advice For Pensions, Insurance or a Financial Plan. Fill out the form below & one of our financial advisors will contact you within 24 hours!