The 50/30/20 rule is a simple budgeting guideline that can help you manage your money in a balanced way. The rule says that you should spend 50% of your income should go to necessities such as rent, utilities, and groceries.  The 30% should be allocated to spontaneous spending like dining out or shopping.  The other 20% of your income should be saved or invested in long-term goals such as retirement or building an emergency fund.  This rule can be a helpful starting point for those new to budgeting or who want a quick and easy way to get started. While it may not work for everyone’s unique financial situation, it can be a useful guideline to help you keep tabs on your spending. Use our free budget calculator to maximize your savings.