Monthly Income

Monthly Expenses

Total Monthly Income $5,000
Total Expenses $3,250
Remaining / Surplus $1,750
Savings Rate 35%
Housing % of Income 30%

Frequently Asked Questions

What is the 50/30/20 rule?

The 50/30/20 rule is a popular budgeting method: 50% of your income goes to needs (rent, food, utilities), 30% to wants (dining out, entertainment), and 20% to savings and debt repayment. It's a simple framework to get started with budgeting.

How much should I spend on housing?

Most financial advisors recommend spending no more than 30% of your gross monthly income on housing. This includes rent/mortgage, insurance, and property taxes. If you're spending more, you might be "house poor."

What's a good savings rate?

Aim to save at least 20% of your income. If that seems impossible, start small—even 5% is better than 0%. The key is consistency. Build an emergency fund first, then focus on retirement savings.

How do I stick to a budget?

Track every expense for a month to see where your money goes. Use apps or spreadsheets. Be realistic—don't set a budget so strict that you'll quit after a week. Review and adjust monthly. Budgeting is a skill, not a one-time task.

Disclaimer: This budget calculator is for informational purposes only. It is not financial advice. Personal financial situations vary greatly. Consider consulting a financial advisor for personalized guidance.