As with any rule of thumb, they are not set in stone. But by adhering to the guidelines of the 50/30/20 rule, most people will be able to limit wasteful spending and set achievable financial goals. There are various similar budgeting methods. The 80/20 rule states that a person takes 20% of their monthly income and puts that into a bank account. The other 80% will go towards all other monetary needs, including health care. The 20% rule forces a person to save or invest 20% of their take-home income. Some prefer to use the 70/20/10 rule. For this rule, you divide your monthly after-tax income categories by 70% for all living expenses, 20% for debt payments, and the remaining 10% for savings. Whatever budgeting rule a person decides to follow is up to their individual circumstances.