60–20–20 Budgeting Rule Explained

Don’t worry—you’re not alone. If managing your money feels hard, try the 60–20–20

budgeting rule. It’s simple and effective. Every time income comes in,

split it into three parts. 60% for needs—rent, bills, food,

transportation. Keep your essentials within this limit as much as possible. 20% for wants—coffee

dates, shopping, travel. Enjoy your life, but enjoy it responsibly.

And the last 20% is for savings, investments, and insurance. This is your financial

security and peace of mind. Twenty percent is the minimum—the more,

the better. This method may not be perfect for everyone, but it’s a solid