The 50–30–20 guide: The 50–30–20 rule is a simple guide for dividing your money into three parts.
- 50 parts for needs: rent, food, bills, transport, school.
- 30 parts for wants: eating out, new clothes, small joys.
- 20 parts for saving: an emergency fund and future goals.
On Rs. 100,000 income: On an income of Rs. 100,000, that means about Rs. 50,000 for needs, Rs. 30,000 for wants, and Rs. 20,000 for saving.
A guide, not a law: This rule is a guide, not a law. If your income is small, needs may take 70 parts. Then try 70–20–10: 70 for needs, 20 for wants, 10 for saving. The rule that works is the one you can actually follow.
Example
Bilal's 70–20–10 fix: Bilal earns Rs. 60,000. Needs take Rs. 42,000 — that is 70 parts. He tried the 50–30–20 rule and failed every month.
Smaller, but followed six months: He changed to 70–20–10: Rs. 42,000 for needs, Rs. 12,000 for wants, Rs. 6,000 for saving. It was smaller, but he followed it for six months and saved Rs. 36,000.
Key Terms
- 50–30–20 rule (اصول) — 50 parts needs, 30 parts wants, 20 parts saving
- Guide (رہنمائی) — a helpful starting point, not a strict law
- Adjust (درست کرنا) — changing the numbers to fit your real life
Fresh diagram to be drawn: A pie chart in three slices: 50 needs, 30 wants, 20 saving, with a second small pie showing 70–20–10 for a small income. In Project Desk colours.
- 50 for needs, 30 for wants, 20 for saving — a guide, not a law.
- If money is tight, try 70–20–10 instead.
- The rule that works is the one you can actually follow.