Financial Rules
Financial Planning Rules
This isn’t about “discipline.” It’s about choosing a rule that doesn’t break under Canadian costs.
The 50/30/20 Budgeting Rule
A simple framework for allocating your after-tax income:
50%
Needs
Housing, utilities, groceries, insurance, minimum payments
30%
Wants
Dining out, entertainment, hobbies, subscriptions
20%
Savings
Emergency fund, investments, debt payoff above minimums
Your Monthly Income
$6,000
Your Current Spending
$2,800 (47%)
$1,500 (25%)
$700 (12%)
Total Allocated$5,000 / $6,000
Recommended Allocation
Needs (50%)
$3,000/moWants (30%)
$1,800/moSavings (20%)
$1,200/moBudget Needs Adjustment
Consider rebalancing to match the guidelines
Needs ≤ 50%
47%Wants ≤ 30%
25%Savings ≥ 20%
12%Current vs Ideal
Your Budget Breakdown
Recommendations
Boost Savings: You're saving $500 less than ideal. Automate transfers to savings accounts and prioritize high-interest debt payoff.