$
Your pay after tax. Not sure? Work it out with our Paycheck Calculator.
Your costs a month (examples: change them to yours)
$
$
$
$
$
$
$
$
Left each month
$450
You spend $3,750 and save $300 of your $4,500 take-home pay
- Needs
- $3,150 (70%)
- Saving
- $300 (7%)
- Needs$3,150
- Wants$600
- Savings$300
- Left over$450
What this means
Give the $750 you don’t spend a job: first an emergency fund of three to six months of needs ($9,450–$18,900), then clearing expensive debt, then investing for later.
The 50/30/20 guide would save $900 a month, $600 more than now.
Compared with the 50/30/20 guide
| Guide | You | ||
|---|---|---|---|
| Needs (50%) | $2,250 | $3,150 | Over |
| Wants (30%) | $1,350 | $600 | ✓ |
| Savings (20%) | $900 | $300 | Under |
What to do next
- Move your $450 left over into savings. You’d then need $150 more a month to save 20%.
- Your needs are $900 over the 50% guide. Housing is usually the biggest cost to look at.
- Aim for an emergency fund of 3 to 6 months of needs: $9,450 to $18,900.
Assumptions in this estimate
- Needs are rent or mortgage, bills, groceries, transport, insurance and health, and debt payments. Wants are everything else you spend. Savings is money you put aside or invest.
- The 50/30/20 guide is a simple starting point, not a strict rule. Where housing is expensive, needs often take more than half.
- Fortnightly and weekly pay are turned into a monthly amount (26 fortnights or 52 weeks a year).