Budget Calculator

How the 50/30/20 rule actually works.

The 50/30/20 rule is one of the simplest budgeting frameworks out there. It was popularized by Senator Elizabeth Warren in her book "All Your Worth" — and the beauty is in its simplicity. Take your after-tax income, split it into three buckets, and you have a budget.

But here's the key: it's a starting point, not a rigid rule. If you live in a high-cost city and your rent eats 40% of your income alone, your "needs" bucket is going to be bigger — and that's okay. The sliders above let you model your actual situation. What matters is that you're intentional about where every dollar goes.

The savings bucket is where the real magic happens. That 20% (or whatever you can manage) is what funds your emergency cushion, your retirement accounts, and your investments. It's the bucket that turns income into wealth over time — and the earlier you start, the more powerful compound growth becomes.