How do you distribute your money when using the 50-20-30 rule?

50 percent: your needs

20 percent: your savings and debt

30 percent: your wants

Explanation:

Budgeting your money using the "50/20/30" rule:

50 percent: Your needs. 50 percent of your paycheck should be set aside for the essentials, the core things you need to live. These include utilities, groceries, and rent, prescription medications, gas for your car, or the minimum payment on your credit card.

20 percent: Your savings and debt. The next 20 percent of your paycheck is for your savings and debt repayments. In other words, paying off the past and investing in the future

30 percent: Your wants. The remaining 30 percent should be spent on things that you want but could live without. This 30 percent allows for flexible spending and, perhaps, a happier life.

This could include money for vacations, shopping sprees, or a car you really covet. But remember, these "wants" include all things that aren't needed to stay afloat, so be sure to prioritize.