What is 50/30/20 budgeting rule?

Great budgeting tool for beginners that gives you an easy framework to work from. Using this budget, your monthly income is split into three categories; needs, wants and savings.

it gives you the chance to reassess your spending, but still gives you the flexibility to do what you want to do. There are a number of reasons you should try the 50/30/20 budgeting rule in your day to day life, including

Reevaluation – If your rent, food, transportations and utilities is more than 50% of your take-home pay, it might be time to think about moving somewhere more affordable, or take a look at some other options.
Simplicity – The budgeting rules are simple and easy to understand, so you won’t get lost in the numbers when you’re planning.
Flexibility – Spending more on wants than savings gives you some wriggle room and lets you enjoy yourself while still putting some money aside.
Consistency – Knowing where your money is going each month will give you peace of mind and won’t leave you with any nasty surprises at the end of the month.