Budget & Emergency Fund
Where should my paycheck go?
A simple starting budget: about half your pay for needs, 30% for wants and 20% for savings. Then work out how big your emergency fund should be and how long it'll take to build.
How to use this calculatorShowHide
- Step 1: Enter your monthly take-home pay — the amount that actually lands in your bank account.
- Step 2: Keep the 50/30/20 split or adjust it to fit your life (it just has to add up to 100%).
- Step 3: Enter your essential monthly costs to see your emergency fund target and how long it takes to save.
What you'll need
- Your monthly take-home pay (after taxes)
- Your essential monthly bills: rent, utilities, groceries, insurance, minimum debt payments
Don't know a number? Leave the example value in, or tap the ⓘ next to it. New to this? Read the Beginner's Guide →
Your monthly budget
$2,500 / $1,500 / $1,000
Out of $5,000 a month, a 50/30/20 split means up to $2,500 for needs, $1,500 for wants, and at least $1,000 toward savings and extra debt payments.
- Needs (50%)
- $2,500.00
- Wants (30%)
- $1,500.00
- Savings (20%)
- $1,000.00
Emergency fund target
$18,000
A 6-month emergency fund for $3,000 of monthly expenses is $18,000. You need $16,000 more; saving $1,000 a month gets you there in 1 year, 4 months.
- Still to save
- $16,000.00
- Time to goal
- 1 year, 4 months
- Funded so far
- 11%
What this means
In plain English
The 50/30/20 rule is an easy way to start a budget. Split your take-home pay into:
- 50% needs — rent, utilities, groceries, insurance, minimum debt payments
- 30% wants — eating out, streaming, shopping, travel
- 20% savings — your emergency fund, retirement, and paying off debt faster
It's a starting point, not a strict rule — change the split to fit your life, as long as it adds up to 100%.
An emergency fund is money set aside only for surprises — a job loss, a medical bill, a car repair — so they don't end up on a credit card. Most people aim for 3 to 6 months of essential costs.
When to use it
- Making your first budget
- Checking whether your spending is balanced
- Setting an emergency fund goal and timeline
Example
You take home $5,000 a month. That's $2,500 for needs, $1,500 for wants and $1,000 for savings.
Your essential bills are $3,000 a month, so a 6-month emergency fund is $18,000. With $2,000 already saved and $1,000 a month going toward it, you'd be fully covered in 16 months.
Watch out for
Budgeting from your salary instead of your paycheck. Use what actually lands in your bank account after taxes and deductions — otherwise every number looks bigger than the money you really have.
The math (optional)
- Each part = take-home pay × its percentage
- Emergency fund goal = essential monthly costs × months to cover
- Months to goal = (goal − already saved) ÷ monthly saving, rounded up