Envelope Budgeting (50/30/20)

50/30/20 rule and envelope budgeting.

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Envelope Budgeting (50/30/20)

Split after-tax income: 50% needs, 30% wants, 20% savings and debt paydown.

Monthly after-tax income ($)

50% Needs

$2,500

Housing, utilities, groceries, insurance, minimum debt

30% Wants

$1,500

Dining out, hobbies, subscriptions

20% Savings & debt

$1,000

Emergency fund, retirement, extra debt payoff

What is it?

Envelope budgeting allocates cash or virtual envelopes to spending categories. The 50/30/20 rule suggests 50% needs, 30% wants, 20% savings and debt paydown.

How it works

Enter your after-tax income. The calculator splits it into 50% needs, 30% wants, and 20% savings. Use this as a starting template and adjust to your situation.

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