Budget Planner - 50/30/20 Tool

Making a budget, and sticking to it, really isn’t as tough as it looks. All it takes are a few simple rules and the determination to put them into practice. One of the best basic budgeting tips is the “50/30/20” rule. It’s easy to use – and we’ve just made it even simpler with our free tool!

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Taking ControlWhat's the 50/30/20 rule all about?

The 50/30/20 system is a basic rule of thumb that helps you take control of your finances without a lot of hassle. You start by working out your total income, then divide it up into three categories:

Living expenses: These are the costs you really can’t get around. We’re talking about things like food, rent, mortgages, debt repayments and utility bills. In general, 50% of your income should be going on these.
Discretionary expenses: These are your “fun funds” – things you could live without, but still have their place in your day-to-day spending. This is where you put all your subscription services, trips to the pub and so on. You should be keeping your spending on this category down to 30% of your total income.

Savings: This is where you put your spare cash at the end of the month. Depending on your circumstances, needs and goals, this might mean a savings account, an ISA or even stock market investments. Generally, you want to have 20% of your income left to put into this category – but remember that it’s almost always better to pay off any debts before you start saving. Interest on the money you owe will usually mount up a lot faster than it does on savings!

It's EasyHow to use the 50/30/20 tool

Enter your total yearly income, credit card balance, annual loans (including mortgage repayments) and any assets you have into the boxes.
Check the “Each month...” box to see what you should be spending and saving from your total earnings.

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Keep readingLearn more about the 50/30/20 rule

If you want to know more about the 50/30/20 rule, along with loads more tips for budgeting and saving. Check out our article ''4 Fixed Income Saving Strategies - Combine to win'' - then join our mailing list for more guides and video advice from RIFT.

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Budget Planner - 50/30/20 Tool​