The 50-30-20 rule is a basic rule for managing your personal finances, as follows:
50% of your income is used for essentials: housing, food, transport and bills;
30% of your income is reserved for leisure and entertainment: going out, eating at restaurants, holidays and hobbies;
20% of your income is set aside as savings or investments for your future, your retirement, emergencies, or other planned investments such as buying a house.
