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The 50-20-30 Rule of Budgeting

Monday, July 14, 2014
It’s payday again and I can feel your excitement holding that payslip of yours more so the money that you will withdraw in the ATM Machine. I wonder how you budget your cut-off payment. I know a lot of us have different budget techniques. I blogged about some HERE and HERE. No matter how you use your work pay I’d like to invite you to know The 50-30-20 Rule that will change how you use your paycheck.

Are you ready?

50% of your Take-Home Pay should go to ESSENTIAL EXPENSES
When we say Essential Expenses these are essential items that has to be bought in order to maintain the foundation of your daily life. Example will be your House Rent, Transportation Allowance, Food/Grocery and/or Electric Bills. Mainly items that are needed in order for you to function.

20% of your Take-Home Pay should go to FINANCIAL FREEDOM
Financial Freedom means your financial investments and savings or goals that you have in order to financially succeed. Count on here your debt payments, loans, savings and/or investments from different investment vehicles you own.

30% of your Take-Home Pay should go to LIFESTYLE
These are chosen luxuries or things that you personally need like hobbies, shopping and other miscellaneous expenses. Never feel guilty having some amount in this area especially if you have SAVED FIRST in your Essential Expenses and Financial Freedom areas.

NOTE that the Tithe is DEDUCTED already on this SAMPLE. Give back first to God before anythings else.


Maria’s MONTHLY Take-Home pay is 11,500pesos less Tax, SSS, Philhealth and Pag-Ibig.

50% of 11,500pesos will be 5750pesos
From this Maria will budget as follows: Rent: 1500pesos
                                                         Electricity: 750pesos
                                                         Transportation: 2000pesos (100pesos X Next 20 Working Days)
                                                         Food: 1500pesos (75pesos X Next 20 Working Days)

20% of 11,500pesos will be  2,300pesos
From this Maria will budget as follows:
                                                         Emergency Fund: 800pesos
                                                         Mutual Fund: 1000pesos
                                                         St. Peter (Life Insurance): 550pesos

30% of 11,500pesos will be 3,450pesos
From this Maria will budget as follows: Phone Installment: 500pesos
                                                        Shopping for soap, shampoo etc.: 1000pesos
                                                        Gym Fee: 1000pesos
                                                        Load: 250
                                                        Relaxation: 500pesos
                                                        Others: 200pesos

From this working sample we can see that The 50-20-30 Rule is EASY AND EFFICIENT way of budgeting.

Do this for the coming Payslip and tell me how your experience went. Please Message me at my Contact Form box or Comment below so we’ll get to know more of each other!!! Also if you either email me at or through the Contact Form in the Upper Left YOU will receive a FREE 50-20-30 Rule of Budgeting Template!!!

Thank you so much.
4 comments on "The 50-20-30 Rule of Budgeting"
  1. Wow! This looks very simple. I am definitely using this to make my weekly budget. I hope this also applies to my Php500/week allowance. I am currently concentrating on saving money. I can't afford a mutual fund or anything like that yet. Thank you very much for posting this!

  2. Hi Ms. Izza, I just started reading your blogs. :-) Everything you posted is very informative. Thank you so much for giving me inspiration to move on with my finances too. I'm a solo parent to two gradeschoolers. Having hard time to stretch my minimum pay. I started reading from your first post in 2013, now andito nako sa July 2014. I'm having fun at the same time, I'm learning. God bless you Ms. Izza.

    1. Wow. Sobrang hindi po ako makapaniwala sa comment na ito. Di ko akalain how my simple blog could inspire others in stepping up their game financially. I hope you continuously love this humble blog of mine. Thank you so so much for being a SavingsPinay Reader. Soon I promise to cover topics for Mommies :)

      Thank you po. This comment made me so happy.

  3. I'll start reading tonight, it seems your blog is interesting to read esp that I am now inclined to saving up and organizing my finances. I'm a guy but your posts are definitely helpful not only to moms but to anyone who choose to work on their financial freedom. I hope you could also get to send me your budget template.