TOP TIPS THE 50/30/20 RULE The 50/30/20 rule is a simple way to start budgeting to save money. It involves dividing your after-tax income into three categories: 50% for necessities, 30% for wants, and 20% for savings. This ensures that you are meeting your basic needs while also allowing yourself some room to spend on things you want. And, by setting aside money each month for savings, you can reach your financial goals more quickly!