What is the 50/30/20 rule? The budgeting method that splits your salary in three

The 50/30/20 rule splits net income into three buckets: 50% needs, 30% wants, 20% savings and debt repayment. Its power is simplicity: instead of questioning every expense, you watch the bucket totals.

50% — Needs

Rent, bills, groceries, transport, health — the non-negotiables. If this bucket exceeds 50%, the problem is not your spending but your fixed-cost load; review the big items (rent, subscription bundles).

30% — Wants

Dining out, hobbies, clothing, entertainment. Cutting them entirely is unsustainable; limiting them works.

20% — Savings and debt reduction

Pay debt first, save second: saving while carrying high-interest credit card debt is a mathematical loss.

How to track it?

Define the buckets as budgets in Parasyo: a 50% total limit on need categories, 30% on wants. Watch each bucket fill during the month; reports show the ratios at month-end. If the ratios don't hold, shrink the 50% bucket first — more realistic than trying to zero out the 30%.