Household Budget Calculator
Calculate your optimal budget with the 50/30/20 rule and find out whether your spending mix is healthy.
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Recommended savings
per month
€600
€600Following the 50/30/20 rule, split €3,000 like this: €1,500 for needs, €900 for wants and €600 for savings.
Recommended split
- Needs€1,50050%
- Wants€90030%
- Savings€60020%
Recommendations
Great! Your savings rate meets or exceeds the recommendation.
How this was calculated
This popular budgeting method was popularized by Elizabeth Warren: 50% for basic needs, 30% for wants, 20% for savings.
- 50% for needs: rent, insurance, groceries
- 30% for wants: leisure, shopping, restaurants
- 20% for savings: emergency fund, investments, retirement provision
The 50/30/20 rule is a guideline, not a strict rule. Adjust the distribution to your life situation. In expensive cities, rent alone can make up 40%+.
RZ-26 · headon.pro
The 50/30/20 rule: budgeting made simple
The 50/30/20 rule is one of the most popular budgeting methods worldwide. It splits your net income into three categories: needs, wants and savings.
The big advantage: you don't have to track every single expense. As long as you stay within the three categories, your budget stays balanced.
The three categories in detail
- 50% needs
- Rent, utilities, insurance, groceries, transport, loans – everything you need to live.
- 30% wants
- Restaurants, streaming, shopping, hobbies, vacations, gym membership – everything you could theoretically do without.
- 20% savings
- Emergency fund, ETF savings plan, retirement provision, debt repayment – your wealth building for the future.
- Flexible and adjustable
- In expensive cities: 60/20/20. With a high income: 40/30/30. The rule is a framework, not a strict requirement.
50/30/20 in practice
- Monthly net income
- €3,000
- Needs (50%)
- €1,500
- Wants (30%)
- €900
- Savings (20%)
- €600
- Rent (utilities included)
- €900
- Insurance
- €150
- Groceries
- €300
- Transport
- €100
- Phone/internet
- €50
- Total fixed costs
- €1,500
Tips for putting it into practice
The key to success: automation. Set up standing orders at the start of the month that automatically transfer 20% to your savings account. What's left is yours to spend.
The most important savings priorities
- 11. Emergency fund3-6 months of expenses in an easily accessible savings account for emergencies.
- 22. Pay off debtHigh-interest loans (>5%) take priority over investments.
- 33. Employer matchWith a workplace pension: contribute at least enough to receive the full employer match.
- 44. ETF savings planLong-term wealth building with broadly diversified ETFs.
- 55. Additional retirement provisionRiester, Rürup or private pension insurance depending on your situation.
Frequently asked questions about the 50/30/20 rule
Everything you need to know about budget planning with the 50/30/20 method
What is the 50/30/20 rule?
The 50/30/20 rule is a simple budgeting method: 50% of net income for needs (rent, groceries, insurance), 30% for wants (leisure, shopping), and 20% for saving and investing.
Who invented the 50/30/20 rule?
The rule was popularized by Elizabeth Warren (US senator and economics professor) and her daughter Amelia Warren Tyagi in their book "All Your Worth: The Ultimate Lifetime Money Plan" (2005).
What counts as needs (50%)?
Needs include all necessary expenses: rent/mortgage, utilities, insurance, staple groceries, commuting costs, loan repayments, phone contract. Everything you need to live.
What counts as wants (30%)?
Wants are all non-essential expenses: restaurant visits, Netflix/streaming, shopping, hobbies, vacations, gym membership, brand products instead of store brands. Everything you could theoretically do without.
What happens if my rent already makes up 40%?
That's normal in expensive cities. Adjust the rule: reduce the wants share, e.g. to 20%. What matters is that at least 10-20% is left for savings. In the long run, check whether moving or a pay raise is possible.
How much should I save at a minimum?
At least 10% of net income, ideally 20%. Prioritize: 1. Emergency fund (3-6 months of expenses), 2. Pay off debt, 3. Retirement provision (at least the employer match), 4. Further investments.