Budget Calculator

Track and optimize your spending using the 40/10/20/10/20 approach for better financial health

Monthly Income

Your total monthly income after tax deductions

Monthly Spending Categories

Needs

Essential expenses like rent/mortgage, groceries, utilities, and basic necessities

Wants

Non-essential items like entertainment, shopping, dining out, and hobbies

Savings & Financial Products

Investments, insurance premiums, emergency fund contributions

Debt

Credit cards, personal loans (excluding car and mortgage)

Car Instalments

Vehicle finance payments and related expenses

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Understanding the 40/10/20/10/20 Approach

Breaking Down Your Budget

  • 40% - Needs: Essential living expenses like housing and groceries
  • 10% - Wants: Non-essential items and entertainment
  • 20% - Savings: Investments and financial products
  • 10% - Debt: Non-housing debt payments
  • 20% - Car: Vehicle finance payments

Benefits of Budgeting

  • Better control over your finances
  • Clear spending priorities
  • Improved saving habits
  • Reduced financial stress
  • Achievement of financial goals

Frequently Asked Questions

Why use the 40/10/20/10/20 rule?

This rule provides a balanced approach to managing your money, ensuring you cover essentials while building savings and managing debt responsibly.

What if my expenses don't match the percentages?

The rule is a guideline. Your situation may require adjustments, but it's a good starting point for financial planning.

Should I include taxes in my calculations?

Use your after-tax income as the starting point for your budget calculations.

What counts as savings?

Include retirement contributions, emergency funds, investments, and insurance premiums in your savings category.