When it comes to personal finance, budgeting is the foundation of financial success. But with so many apps, tools, and theories out there, it can feel overwhelming—especially if you’re just getting started.
The good news? There’s one timeless, easy-to-follow strategy that works for almost everyone: The 50/30/20 Rule.
It’s simple, flexible, and powerful—and it can completely transform the way you manage your money.
🧮 What Is the 50/30/20 Rule?
This rule divides your after-tax income into three clear categories:
- 50% for Needs
- 30% for Wants
- 20% for Savings & Debt Repayment
Let’s break each part down:
✅ 50% for Needs
These are the essential expenses you must pay each month, no matter what. They include:
- Rent or mortgage
- Utilities (electricity, water, internet)
- Groceries
- Transportation (fuel, car payments, public transport)
📌 Tip: If your needs exceed 50%, that’s a sign to review your fixed costs or consider ways to increase your income.
🎉 30% for Wants
This is the fun category—and yes, it’s important too! Wants are non-essential expenses that add comfort and joy to your life:
- Dining out and coffee runs
- Shopping and clothing
- Subscriptions (Netflix, YouTube, gym)
- Travel and entertainment
- Beauty and self-care
🎯 The goal is to enjoy life while still living within your means.
💡 20% for Savings
This is where your future wealth and financial freedom begin. This category includes:
- Building an emergency fund
- Saving for a home or big goal
- Investing in stocks or ETFs
📈 Even a small, consistent monthly contribution makes a big difference over time.
💬 Real-Life Example
Let’s say your monthly income is 10,000 AED.
| Category | % | Amount (AED) | Examples |
|---|---|---|---|
| Needs | 50% | 5,000 | Rent, utilities, food, transport |
| Wants | 30% | 3,000 | Shopping, dining out, travel |
| Savings | 20% | 2,000 | Emergency fund, investments, etc. |
🧕🏽 Why This Rule Works for Arab Women
Many women in the Middle East manage their family’s budget—but aren’t taught personal finance in school. The 50/30/20 rule removes the confusion and helps you:
- Balance responsibilities and joy
- Avoid debt and overspending
- Build wealth with intention
- Take control of your financial life—on your terms
Whether you’re single, married, a student, or a mom, this framework works. It gives you clarity, discipline, and freedom—without requiring spreadsheets or complicated math.
📌 How to Get Started
- Calculate your income
- List your expenses and group them into Needs, Wants, and Savings
- Use an expense tracker sheet (FinSHE has one for you!)
- Adjust until your numbers fit the rule—or close to it
- Stick to it for 3 months and track your progress
❤️ Final Thoughts
You don’t need to be an accountant to budget like a pro. You just need a simple plan that works. And the 50/30/20 rule is that plan.
At FinSHE, we’re here to make budgeting easy, empowering, and culturally relevant for women in the Middle East. If you want personalized help, join one of our sessions or download our free budgeting tools.
Your financial freedom starts with how you spend your next paycheck. Ready to make it count?