The 50/30/20 Rule is the simplest way to create a budget. It helps you keep your spending aligned with your savings goals. This very convenient, especially if this is the first time you try to organize your finances. Once you know how to achieve a balanced budget, you can further customize this rule around your unique expenses and goals.

50% of Your Income Goes to Essentials

Start by setting 50% of your income to pay essential items such as rent, utilities, car transportation and housing. This might be a little high in the beginning but once you get the hang of it you will be able to customize your budget to your needs. For instance, some people live in high-rent areas, yet can walk to work, while others enjoy much lower housing costs, but transportation is far more expensive.

30% of Your Income Goes to Your Lifestyle

Your lifestyle is important and although you may need to sacrifice some luxuries, you need to splurge once in a while. Therefore, 30% of your income goes to personal expenses like travel, dining out, cable, and even expensive coffee. If you travel extensively or work on-the-go, your cell phone plan is probably more of a necessity more than a luxury. It is up to you to decide which items are consider personal and which you should cut-off.

20% of Your Income Goes to Savings

The last step is to designate 20% of your income to savings. This is for your future, for everything unexpected that may come your way. This is the category you should think about after your essentials and before feeding your lifestyle expenses. It is your “get ahead” section and you must give it importance.

You don’t need to make a lot of money to budget properly. The 50/30/20 rule is only the beginning, you will customized this rule when you become an expert at budgeting.

You are now leaving

You have selected a link that will take you to a web site that is NOT part of BrightStar CU's web site.

The external site to which you are linking is a valued BrightStar CU online partner, and we encourage you to continue to the site. We make every effort to ensure the quality of our online partners. When we reviewed this site, it seemed suitable for BrightStar CU members, but that may have changed.

BrightStar CU provides this link as a convenience, but we are not responsible for the external site's content. The party responsible for the site can change its content at anytime. We cannot be certain of the site's content or the responsible party's practices. Therefore, endorsement by BrightStar CU is not implied. Privacy and security practices of the external site may differ from those of BrightStar CU. We encourage you to review this site's information, privacy notice, terms and conditions before using it. BrightStar CU does not represent either the party or the member if the two parties enter into a transaction on the external site. If you have any difficulties using or concerns about this site, please let us know.

You will be redirected to

Click the link above to continue or CANCEL