**50% toward necessities, 30% towards discretionary, 20% to savings** The 50/30/20 Rule of personal finance stipulates the proportion of your cash flow based on your _after-tax_ pay: - 50% to necessities - Housing, food, insurance (including _medical premiums_), basic utilities, transport, loan repayments, childcare - 30% to discretionary items - Eating out, entertainment, travel, subscription services - 20% to savings and [[After-Tax Investment]] - 401k, IRA, HSA, saw savings accounts contributions, aaaaaand payments _above the minimum_ for mortgage, loans, etc # Example Figures Gross: $11,137 Taxes: $2,000 Base: $9,137 Needs: $4,568 - Medical: $518 - Mortgage: $2000 - Car: $550 - Daycare: $1000 - Utilities: $521 - Insurance: $145 - Groceries: ... ~ -$566 to make budget Wants: $2,741 - Subscriptions: - Eating Out: - Entertainment: - Travel: Save: $1,827 - HSA: $500 - 401k: $1,391 - IRA: $25 ...$89 extra saved, not bad. **** ## Source - a few. Forbes and NerdWallet most prominently. ## Related - [[7 Bank Accounts]] - [[Pre-Tax or After-Tax, which to use]] - [[Budget]] - [[Budget Boot Camp]]