30/30/30 Rule Calculator

Calculate Budget Amounts

Formula

The formula to calculate the budget amount for each category according to the 30/30/30 Rule is:

\[ B = \text{ATI} \times 0.30 \]

Where:

What is the 30/30/30 Rule?

The 30/30/30 Rule is a budgeting guideline that suggests allocating 30% of your after-tax income to needs, 30% to savings, and 30% to wants. This rule helps in creating a balanced budget by ensuring that each essential aspect of your finances is adequately covered.

Example Calculation

Let's consider an example:

Using the formula to calculate the budget amount for each category:

\[ B = 4,000 \times 0.30 = 1,200 \]

This means that according to the 30/30/30 Rule, you should allocate $1,200 each to needs, savings, and wants.