{"id":21013,"date":"2021-08-05T13:17:46","date_gmt":"2021-08-05T17:17:46","guid":{"rendered":"https:\/\/www.dailypay.com\/?p=21013"},"modified":"2022-01-26T11:24:13","modified_gmt":"2022-01-26T16:24:13","slug":"50-30-20-rule","status":"publish","type":"post","link":"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/","title":{"rendered":"50\/30\/20 Rule"},"content":{"rendered":"\n<p>The 50\/30\/30 budget rule was popularized by Senator Elizabeth Warren in her book, <em>All Your Worth: The Ultimate Lifetime Money Plan<\/em>. This rule suggests that after income taxes, you should divide your paycheck in the following way:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>50% spent on needs<\/li><li>30% spent on wants<\/li><li>20% put into savings<\/li><\/ul>\n\n\n\n<p>While this method isn\u2019t always feasible, it is a good rule to work toward.<\/p>\n\n\n\n<div class=\"wp-block-dailypay-heading undefined\" data-version=\"1f68\"><h2 class=\"heading color_navy \"><strong>50% On Needs<\/strong><\/h2><\/div>\n\n\n\n<p>In this case, needs would be considered expenses, such as mortgage payments, rent, utilities and health care. These are the expenses that are absolutely essential and paying for them should come first. If you are spending more on needs than you are making, you may need to consider different <a href=\"https:\/\/www.dailypay.com\/financial-literacy\/employee-budgeting-dailypay-2021\/\" target=\"_blank\" rel=\"noreferrer noopener\">budgeting<\/a> techniques or changes in your life.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-dailypay-heading undefined\" data-version=\"1f68\"><h2 class=\"heading color_navy \"><strong>30% On Wants<\/strong><\/h2><\/div>\n\n\n\n<p>Wants are expenses such as your cable bill, music subscriptions, nights out, etc. These are things and services that you don\u2019t necessarily need, but really want. The 50\/30\/20 rule suggests that you use 30% of your paychecks on these things.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-dailypay-heading undefined\" data-version=\"1f68\"><h2 class=\"heading color_navy \"><strong><strong>20% Into Savings<\/strong><\/strong><\/h2><\/div>\n\n\n\n<p>Sometimes it can be difficult to think about saving for the future when there are many expenses to think about now. However, since savings accounts accrue interest, it\u2019s<a href=\"https:\/\/www.dailypay.com\/financial-literacy\/saving-for-your-future-now-and-in-times-of-crisis\/\" target=\"_blank\" rel=\"noreferrer noopener\"> important to move money in your savings account to prepare for the future<\/a>. It is also suggested that you use this 20% to help pay down loans and credit card debt. You can also choose to split this 20% into different accounts including, but not limited to, savings accounts, retirement accounts or mutual accounts. Your future self will thank you.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-dailypay-heading undefined\" data-version=\"1f68\"><h2 class=\"heading color_navy \"><strong>How DailyPay Can Help<\/strong><\/h2><\/div>\n\n\n\n<p>There are two ways that DailyPay can help you follow the 50\/30\/20 rule \u2014 with PAY and SAVE.&nbsp;<\/p>\n\n\n\n<div class=\"wp-block-dailypay-heading undefined\" data-version=\"1f68\"><h3 class=\"heading color_navy \"><a href=\"https:\/\/www.dailypay.com\/pay\/\"><strong>PAY<\/strong><\/a><\/h3><\/div>\n\n\n\n<p>PAY allows you to access your earned pay before payday, so you never have to worry about missing a bill due date because it\u2019s due between paychecks. With PAY, you won\u2019t have to worry about including overdraft fees, late fees or interest charges in your expenses.<\/p>\n\n\n\n<div class=\"wp-block-dailypay-heading undefined\" data-version=\"1f68\"><h3 class=\"heading color_navy \"><a href=\"https:\/\/www.dailypay.com\/save\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>SAVE<\/strong><\/a><\/h3><\/div>\n\n\n\n<p>SAVE lets you move your earned income from your available Pay Balance to your savings account quickly and easily. You can set up <a href=\"https:\/\/www.dailypay.com\/financial-literacy\/automate-savings-payments-dailypay\/\" target=\"_blank\" rel=\"noreferrer noopener\">automatic savings<\/a> so that going forward, you don\u2019t ever have to remember to save!\u00a0<\/p>\n\n\n\n<p>Budgeting can be difficult and daunting, but the 50\/30\/20 rule is a good rule of thumb and DailyPay can help you follow it.<\/p>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p>Looking for more financial wellness tips? Check out some of our other <a href=\"https:\/\/www.dailypay.com\/financial-literacy\/\" target=\"_blank\" rel=\"noreferrer noopener\">financial wellness resources<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 50\/30\/30 budget rule was popularized by Senator Elizabeth Warren in her book, All Your Worth: The Ultimate Lifetime Money Plan. This rule suggests that after income taxes, you should divide your paycheck in the following way: 50% spent on needs 30% spent on wants 20% put into savings While this method isn\u2019t always feasible,<a class=\"read-more\" href=\"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/\">Read More<\/a><\/p>\n","protected":false},"author":32,"featured_media":20679,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[145],"tags":[566,186,391],"class_list":["post-21013","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-financial-literacy","tag-budgeting","tag-financial-wellness","tag-saving-money"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.2 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>50\/30\/20 Rule - DailyPay<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"50\/30\/20 Rule\" \/>\n<meta property=\"og:description\" content=\"The 50\/30\/30 budget rule was popularized by Senator Elizabeth Warren in her book, All Your Worth: The Ultimate Lifetime Money Plan. This rule suggests that after income taxes, you should divide your paycheck in the following way: 50% spent on needs 30% spent on wants 20% put into savings While this method isn\u2019t always feasible,Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/\" \/>\n<meta property=\"og:site_name\" content=\"DailyPay\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/dailypay\" \/>\n<meta property=\"article:author\" content=\"https:\/\/www.facebook.com\/trydailypay\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-08-05T17:17:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-01-26T16:24:13+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.dailypay.com\/wp-content\/uploads\/50-30-20-rule-dailypay.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"628\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"DailyPay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@dailypay\" \/>\n<meta name=\"twitter:site\" content=\"@dailypay\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"DailyPay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"50\/30\/20 Rule - DailyPay","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/","og_locale":"en_US","og_type":"article","og_title":"50\/30\/20 Rule","og_description":"The 50\/30\/30 budget rule was popularized by Senator Elizabeth Warren in her book, All Your Worth: The Ultimate Lifetime Money Plan. This rule suggests that after income taxes, you should divide your paycheck in the following way: 50% spent on needs 30% spent on wants 20% put into savings While this method isn\u2019t always feasible,Read More","og_url":"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/","og_site_name":"DailyPay","article_publisher":"https:\/\/www.facebook.com\/dailypay","article_author":"https:\/\/www.facebook.com\/trydailypay\/","article_published_time":"2021-08-05T17:17:46+00:00","article_modified_time":"2022-01-26T16:24:13+00:00","og_image":[{"width":1200,"height":628,"url":"https:\/\/www.dailypay.com\/wp-content\/uploads\/50-30-20-rule-dailypay.png","type":"image\/png"}],"author":"DailyPay","twitter_card":"summary_large_image","twitter_creator":"@dailypay","twitter_site":"@dailypay","twitter_misc":{"Written by":"DailyPay","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/#article","isPartOf":{"@id":"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/"},"author":{"name":"DailyPay","@id":"https:\/\/www.dailypay.com\/#\/schema\/person\/0dc5e72435b747402bdc50b62513acd9"},"headline":"50\/30\/20 Rule","datePublished":"2021-08-05T17:17:46+00:00","dateModified":"2022-01-26T16:24:13+00:00","mainEntityOfPage":{"@id":"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/"},"wordCount":397,"publisher":{"@id":"https:\/\/www.dailypay.com\/#organization"},"image":{"@id":"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/#primaryimage"},"thumbnailUrl":"https:\/\/www.dailypay.com\/wp-content\/uploads\/50-30-20-rule-dailypay.png","keywords":["Budgeting","Financial Wellness","saving money"],"articleSection":["Financial Literacy"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/","url":"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/","name":"50\/30\/20 Rule - DailyPay","isPartOf":{"@id":"https:\/\/www.dailypay.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/#primaryimage"},"image":{"@id":"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/#primaryimage"},"thumbnailUrl":"https:\/\/www.dailypay.com\/wp-content\/uploads\/50-30-20-rule-dailypay.png","datePublished":"2021-08-05T17:17:46+00:00","dateModified":"2022-01-26T16:24:13+00:00","breadcrumb":{"@id":"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.dailypay.com\/resource-center\/financial-literacy\/50-30-20-rule\/#primaryimage","url":"https:\/\/www.dailypay.com\/wp-content\/uploads\/50-30-20-rule-dailypay.png","contentUrl":"https:\/\/www.dailypay.com\/wp-content\/uploads\/50-30-20-rule-dailypay.png","width":1200,"height":628,"caption":"A father and his two children are drawing together on a large sheet of paper on the floor in a brightly lit living room. 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