PakFinanceGuidesA simple starting framework
The 50/30/20 rule suggests spending about half of after-tax income on needs, 30% on wants and 20% on saving and paying down debt. It is a guide, not a law.
How to use it
Enter your monthly take-home pay. You can change the needs and wants percentages, and the savings share adjusts automatically. The tool shows monthly and yearly amounts.
Example
With $4,000 take-home, 50% needs is $2,000, 30% wants is $1,200 and 20% savings is $800, or $9,600 a year.
Adjusting for real life
In high-cost cities needs may take 60% or more. If so, trim wants first and keep a small savings habit alive. Raise savings whenever your income rises.
Tip
Automate the savings share on payday so it never feels optional.
Frequently asked questions
What counts as a need?
Housing, utilities, groceries, transport to work, insurance and minimum debt payments.
What if I cannot reach 20%?
Start with what you can and increase gradually.
Should I use gross or net pay?
Use take-home pay, after tax.