The 50/30/20 rule in a nutshell
The rule splits your take-home pay into three pots:
- 50% for needs: housing, energy, groceries, getting to work, insurance, essential loan repayments.
- 30% for wants: eating out, going out, clothes beyond the basics, travel, entertainment subscriptions.
- 20% for savings: emergency fund, plans, paying off debt early.
Example with €2,100 take-home pay: €1,050 for needs, €630 for wants and €420 for savings.
To go further, read our full guide to the 50/30/20 rule and how to adapt it.
From 3 pots to a real budget
The three percentages set the direction. To stick to them, split each pot into categories (groceries, transport, going out…) and track your spending through the month. That's exactly what Souski does: it compares each category with its budget and shows you what's left.
Frequently asked questions
Should I use my gross or net salary for the 50/30/20 rule?
Use your net pay: what actually lands in your account each month, after tax and deductions. Add any other regular income you have.
Where do loan repayments go?
Mortgage payments and essential loans (a car you need to get to work) go in needs. A personal loan for something fun belongs in wants. Paying debt off faster than required can count towards the 20%.
What if my needs are more than 50%?
It's common when rent is high. Adjust the split (for example 60/20/20 or 60/30/10) and look for bills you can cut. What matters is keeping some savings every month, even a small amount.
Does the 50/30/20 rule work for everyone?
It's a starting point, not a rule you must follow. It gives you a simple order of magnitude. A budget per category then lets you fine-tune it to your situation.