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Personal Finance

The 50/30/20 Budget Explained

Split your income into needs, wants and savings with this simple rule of thumb.

Sarah MitchellSenior Financial Writer1 min read

The 50/30/20 rule puts 50% of take-home pay toward needs, 30% toward wants and 20% toward savings.

Treat the split as a starting point and adjust it to your cost of living.

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