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Budget rules

What this is

The 50/30/20 rule (Elizabeth Warren)

A simple monthly split of your TAKE-HOME pay into three buckets. Easy to remember; works for most people most of the time.

·50% on needs, rent or mortgage, groceries, utilities, insurance, transit, minimum debt payments. The stuff you have to pay.
·30% on wants, dining out, hobbies, subscriptions, travel, gear. Lifestyle.
·20% on the future, savings + extra debt paydown. Emergency fund, TFSA, RRSP, FHSA, anything that builds wealth.

Your numbers

Monthly net income (CAD)You spend on needsYou spend on wantsYou save + pay debt

How you stack up

Needs

$2,800 / $2,600

50%, rent, groceries, utilities, transit, insurance

Wants

$1,400 / $1,560

30%, dining, hobbies, subscriptions, travel

Savings + debt

$800 / $1,040

20%, emergency fund, retirement, extra debt paydown

Educational. Monthly NET income (after tax + CPP + EI). Tweak bands to fit your life, these are starting points, not laws.

Disclaimer

Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting.