Needs are expenses that you can’t avoid—payments for all the essentials that would be difficult to live without. For instance: - Monthly rent - Electricity and gas bills - Transportation - Insurance (healthcare, car, or pets) - Groceries

Wants are defined as non-essential expenses—things that you choose to spend your money on, although you could live without them if you had to. For instance: - Dining out - Shopping - Holidays - Gym memberships - Entertainment subscriptions (Netflix, HBO, Spotify) - Groceries (other than the essentials)

Savings are put aside towards your financial goals or used to pay back any outstanding debt. For instance: - Money for emergency expenses - Retirement investments - Long-term personal financial plans - A down payment on real estate - Investments in your education

50 30 20 Budget Calculator

Easily split your income into needs, wants, and savings with our 50/30/20 Budgeting Calculator—and start taking steps towards financial freedom.

N26 spaces against light blue background.

How to use the 50/30/20 calculator?

Enter estimated amounts in all of the "Income" fields that apply to you or your family.
Calculate your after-tax income.
Be sure to round up to the nearest euro—don’t use commas or periods.

Your Monthly income after taxes

Salary/Wages (As Family Unit)

Other sources of income

Your Summary

Monthly view

Annual view

50/30/20 breakdown

This is how you should be budgeting your income based on the 50/30/20 rule.

Needs

€1,000.00

Wants

€600.00

Savings

€400.00

What is the 50/30/20 rule?

The 50/30/20 rule is a money-saving method that involves allocating certain percentages of your net monthly income to the following three categories: 50% for basic necessities, 30% for disposable income, and 20% for savings and debt payments. It’s a really effective way to balance your income, manage yourself effectively to generate a good amount of savings, avoid wasting money, and reach all of your financial goals.

Why use the 50/30/20 rule?

Using the 50/30/20 rule as a money-saving method doesn’t mean you have to stop enjoying life, but it does help you to be smart with your money and recognize what areas of your monthly budget are being wasted unnecessarily. It means that you’ll be able to do without non-essential expenses, have savings to fall back on if something unexpected happens, or pay off your debts.

Who came up with the 50/30/20 rule?

The rule was created by Elizabeth Warren, insolvency expert at Harvard University, and her daughter Amelia as a method of effectively taking control of your finances without having to follow a detailed and complex budget or needing to know about economics. It’s a system that everyone can follow and that ensures that you can build a good level of savings.

Frequently asked questions

Needs are expenses that you can’t avoid—payments for all the essentials that would be difficult to live without. For instance:

Monthly rent
Electricity and gas bills
Transportation
Insurance (healthcare, car, or pets)
Groceries

Wants are defined as non-essential expenses—things that you choose to spend your money on, although you could live without them if you had to. For instance: