Start with the essentials

The familiar 50/30/20 approach divides take-home income between needs, wants and saving or debt repayment. It is a general rule of thumb, not an RBI requirement. Families sharing income across generations may need a different split.

What you can do

  1. Calculate your own essential-spending percentage using the last three months, rather than guessing.
  2. Separate a genuine need from a flexible expense, without treating medical care or school costs as optional.
  3. Set a realistic savings amount and revisit it when income, rent or family responsibilities change.

Keep in mind

If essentials exceed half your income, the budget has not failed. Protect necessities, review costs you can change and work toward a manageable buffer.

Further reading & official resources

Check current terms and guidance with the responsible provider. References are for background reading and do not imply endorsement.

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