The 50/30/20 rule is a budgeting technique that was created by Senator Elizabeth Warren. The idea is that people will be able to more easily achieve greater financial stability by dividing specific shares of their spending between distinct categories. The three categories of the 50/30/20 rule are: 50% allocated to needs (i.e., rent, healthcare, etc.), 30% to wants (i.e., travel, entertainment, etc.), and 20% toward savings/debt (i.e., retirement, student loan payments, etc.).