The 50/30/20 rule is a simple budgeting framework: allocate 50% of after-tax income to needs, 30% to wants, and 20% to savings and debt repayment. It was popularised by Senator Elizabeth Warren in the book All Your Worth (2005).
In high-cost-of-living areas (London, south-east England), housing alone can exceed 50% of take-home pay for many households. The rule is a starting framework, not a rigid target. Use it to understand your current allocation and identify where to direct attention, not as a pass/fail test.
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