Take-home income
Framework
Your spending
Your actual mix
Target: 50/30/20. You're at 53%/24%/16%.
Needs
$3,100
target $2,900 · +200
Wants
$1,400
target $1,740 · −340
Savings
$950
target $1,160 · −210
What does 50/30/20 look like on $5,800 a month?
On $5,800 of monthly take-home pay, the 50/30/20 rule targets $2,900 for needs (housing, groceries, utilities, minimum debt payments), $1,740 for wants, and $1,160 for savings and extra debt paydown. It's a starting framework, not a law — in high-cost cities needs often overshoot 50%, and the right response is shrinking the wants line, not the savings line.
$2,900
Needs (50%)
$1,740
Wants (30%)
$1,160
Savings (20%)
$5,800/mo
Take-home
Frequently asked questions
Why these frameworks
50/30/20: the default
Half on needs, 30% on wants, 20% on savings + debt payoff. Works for most stable middle incomes. If you can hit this, you're winning.
70/20/10: the survival budget
When rent is crushing your income, you need a realistic framework. 70% needs acknowledges reality while still carving out 10% for savings. Not forever — a bridge.
Zero-based: every dollar has a job
Most rigorous. No bucket is implicit. Good for detail-oriented people or anyone who finds their spending mysteriously disappears each month.