Written by Jaclyn DeJohn, Nasdaq, June 04, 2025 — 09:37 am EDT
As cost of living increases seem to permanently make their way to important budget items, individuals and families increasingly need more income to support a comfortable lifestyle over the long-term. This means being able to afford hobbies, vacations, retirement savings, education funds, and the occasional emergency – in addition to necessities like housing, groceries, transportation and medical expenses. One way to estimate how much income is needed for these collective expenses is the 50/30/20 budget rule. This rule suggests allocating 50% of your income to necessities, 30% to discretionary spending, and 20% to long-term goals like retirement savings or paying off debt. Read more