Find out in 30 seconds. Based on your income, expenses, and 5 simple cuts. Includes 4 saving strategies and instant results.
The 50/30/20 rule: 50% of after-tax income to needs, 30% to wants, 20% to savings. On $50K after-tax, that's $10K/year savings. People who retire early typically save 50-70% of income. The minimum: 1 month's expenses in emergency fund, then 15%+ for retirement.
The 50/30/20 rule: 50% of after-tax income to needs (rent, food, utilities, minimum debt payments), 30% to wants (entertainment, dining out, hobbies), 20% to savings and extra debt payments. It's a simple framework that works for most people. Adjust as needed: 60/20/20 for high cost-of-living areas, 40/20/40 for aggressive savers.
You just saw how much you can save by cutting expenses. The next step is making that money work harder — modeling the 50/30/20 budget that holds the cuts in place, projecting what those savings become over decades of compounding, and choosing the right vehicle (emergency fund, retirement, debt payoff) for each dollar.