50/30/20 rule

proper noun

An informal budgeting rule in which 50% of one's income goes toward necessities, 30% toward things one wants, and the remaining 20% into savings.

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Meanings

proper nounthe 50/30/20 rule

alternative 50-30-20 rule

  1. businessAn informal budgeting rule in which 50% of one's income goes toward necessities, 30% toward things one wants, and the remaining 20% into savings.
Cite this entry
APA

50/30/20 rule. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/50%2F30%2F20%20rule

MLA

“50/30/20 rule.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/50%2F30%2F20%20rule. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “50/30/20 rule,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/50%2F30%2F20%20rule.

Source: 50/30/20 rule on Wiktionary, CC BY-SA 4.0.