Your Income & Spending
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Enter your current spending in each category (leave 0 if unsure):
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MONTHLY NET INCOME
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Calculating...
Savings Target
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50% Needs
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Ideal allocation
30% Wants
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Ideal allocation
20% Savings
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Ideal allocation
Current vs Ideal Comparison
| Category | Ideal Amount | Ideal % | Your Amount | Your % | Gap |
|---|---|---|---|---|---|
| 🏠 Needs | — | 50% | — | — | — |
| 🎉 Wants | — | 30% | — | — | — |
| 💰 Savings | — | 20% | — | — | — |
| Total | — | 100% | — | — | — |
Top 3 Adjustments Needed
Frequently Asked Questions
The 50/30/20 rule allocates 50% of your net income to needs (rent, food, transport, utilities, insurance), 30% to wants (dining out, entertainment, subscriptions, hobbies), and 20% to savings and debt repayment. It's a simple framework popularized by Senator Elizabeth Warren and works well across different income levels.
In high-cost African cities like Lagos, Nairobi, or Cape Town, the 50% needs bucket can easily be exceeded by rent alone. If your needs exceed 50%, try to reduce wants further and still aim for at least 10-15% savings. The framework is a guide, not a rigid rule — adapt it to your circumstances.
Needs: rent/mortgage, food (basic groceries), transport to work, utilities (electricity, water, gas), basic phone/data, health insurance, minimum debt payments. Wants: dining out, streaming services, gym memberships, clothing beyond basics, entertainment, holidays. The line can blur — an internet subscription may be a need if you work from home.
Savings includes: emergency fund contributions, retirement contributions (pension, NSSF, NHIF savings), investments (stocks, mutual funds, T-bills), savings accounts, fixed deposits, and extra debt repayment above the minimum.