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The 50/30/20 rule divides after-tax income into: 50% needs (housing, food, utilities, transportation), 30% wants (entertainment, dining out, hobbies), and 20% savings/debt repayment. It's a simple framework to balance living expenses with financial goals.

The general rule is to spend no more than 28-30% of gross income on housing (rent/mortgage, taxes, insurance). Some experts recommend 25% of take-home pay. In high-cost areas, you may need to adjust, but try to offset with lower spending elsewhere.

Financial experts recommend saving at least 20% of income (including retirement contributions). This breaks down as: 10-15% for retirement, 5-10% for other goals (emergency fund, down payment). Start with what you can and increase by 1% every few months.

Use budgeting apps (Mint, YNAB, Personal Capital), spreadsheets, or the envelope method. Track for 1-3 months to understand patterns. Categorize expenses as needs vs wants. Review weekly and adjust. Automate savings to "pay yourself first."

First, separate needs from wants and cut wants. Look for ways to reduce needs (refinance, negotiate bills, downsize). Increase income with side work. Prioritize high-interest debt. Build a $1,000 emergency fund first, then tackle debt systematically.