The 50/30/20 rule is a simple budgeting framework: spend 50% of your after-tax income on needs, 30% on wants, and save/invest 20%. It's not rigid — you can adjust the percentages to match your situation — but it gives you a solid starting point.

Needs (50%) are essentials you can't avoid: rent/mortgage, groceries, utilities, insurance, transport, minimum debt repayments. Wants (30%) are things you enjoy but could live without: dining out, entertainment, subscriptions, holidays, hobbies. Savings (20%) includes emergency fund contributions, extra super, investments, and extra debt repayments above minimums.

Don't know your take-home pay? Use our Take-Home Pay Calculator first.