Free Budget Tool
Enter your monthly income and instantly see how to split it between needs, wants, and savings using the popular 50/30/20 rule.
Varden imports your bank transactions, auto-categorizes them into needs, wants, and savings, and sends you weekly spending insights powered by AI.
Start FreeThe 50/30/20 rule is one of the simplest and most effective budgeting frameworks ever created. Popularized by U.S. Senator Elizabeth Warren in her book “All Your Worth,” it divides your after-tax income into three clear categories: 50% for needs, 30% for wants, and 20% for savings and debt repayment.
Needs (50%) cover essentials you cannot avoid: rent or mortgage payments, utility bills, groceries, insurance premiums, minimum debt payments, and transportation to work. These are expenses that would seriously impact your quality of life if cut.
Wants (30%) include everything you enjoy but could live without: dining out, streaming subscriptions, gym memberships, hobbies, vacations, and upgrades to nicer versions of things you already have.
Savings (20%) is your future security: emergency fund contributions, retirement investments, extra debt payments above the minimum, and saving for major goals like a house deposit or education fund.
This calculator helps you apply the rule instantly. Adjust the percentages if your situation calls for it — for example, if you live in a high-cost city, you might need 60% for needs and reduce wants to 20%. The key is having a plan that works for you.