The Budget Calculator is an interactive, online experience to help you create a monthly budget. The analysis in this experience is based on the information provided by you. This information does not serve, either directly or indirectly, as legal, financial or tax advice and you should always consult a qualified professional legal, financial and/or tax advisor when making decisions relative to your individual tax situation. IMPORTANT: The illustrations or other information generated by the calculators are hypothetical in nature, do not reflect actual investment results, and are not guarantees of future results.
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The 50/30/20 rule is a popular budgeting method that splits your monthly income among three main categories. Here's how it breaks down:
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50% of your income: needs. Necessities are the expenses you can’t avoid. This portion of your budget should cover required costs such as:Housing.Food.Transportation.Basic utilities.Insurance.Minimum loan payments. Anything beyond the minimum goes into the savings and debt repayment bucket.Child care or other expenses that need to be covered so you can work.

‍30% of your income: wants. Distinguishing between needs and wants isn’t always easy and can vary from one budget to another. Generally, though, wants are the extras that aren’t essential to living and working. They’re often for fun and may include:Monthly subscriptions.Travel.Entertainment.Meals out.

20% of your income: savings and debt. Savings is the amount you sock away to prepare for the future. Devote this chunk of your budget to paying down existing debt and creating a financial cushion.

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