What is the 50/30/20 budgeting rule?
The 50/30/20 rule suggests allocating 50% of your income to needs (housing, utilities, groceries), 30% to wants (entertainment, dining out), and 20% to savings and debt repayment. This is a simple guideline to help balance your budget.
How often should I review my budget?
It's recommended to review your budget at least monthly. Weekly check-ins can help you stay on track. Major life changes (new job, moving, family changes) require immediate budget reviews and adjustments.
What's a good savings rate?
A savings rate of 20% is generally recommended. However, this can vary based on your financial goals. Some experts suggest saving at least 15% for retirement, with additional savings for emergencies and other goals.
Should I budget for irregular expenses?
Yes! Include irregular expenses like annual insurance premiums, car maintenance, holiday gifts, and vacations. Divide the annual cost by 12 and save that amount monthly so you're prepared when the expense occurs.
How do I handle variable income?
For variable income, calculate your average monthly income over 6-12 months. Base your budget on the lower end of your income range. During higher-income months, save the excess to cover lower-income months.
Is my budget data stored on your servers?
No, all budget calculations are performed locally in your browser. We don't store any of your financial information on our servers. Your privacy is protected and you can use the budget planner with complete confidence.