We're recommending the 50-30-20 split so you can easily sort your salary between paying your bills, saving, and splurging. However, you can adjust Salary Sweeper to suit your goals at any time.
What is the 50-30-20 spilt?
We know it can be hard to create a system for your money that's easy to follow and works hard for you. This is where the 50-30-20 budget can be a simple way to start. The 50-30-20 rule is a percentage-based budget concept. This is a popular budgeting style due to its simplicity, flexibility, and how it can apply to different stages of life. It’s based on percentages and not how much you earn, so you can adapt it to your own circumstances. The below is how it is divided:
- 50% to your needs - necessary costs for you to live i.e. electricity, rent, loan repayments
- 30% to your wants - things that we enjoy but, let’s face it, could go without if we had to i.e. entertainment and social outings
- 20% to financial goals - completely dependent on what’s a priority for you and your life i.e. saving for something special or important
Please note, changing the percentages should be done before your salary hits.