Split your after-tax income by the 50/30/20 rule: half on needs, 30% on wants, 20% on savings and debt. See what each share comes to each month.
Updated October 2026Built and checked by MaverickHow it's calculatedReport an error
Needs (50%)
$2,750
$635/wk
Wants (30%)
$1,650
$381/wk
Savings (20%)
$1,100
$254/wk
5-year savings
$74,724
at the RBA average savings rate
The 50/30/20 rule is a starting point. If rent's high or you're saving hard, your split will look different, and that's fine.
Compare 50/30/20 with other splits. Shifting part of wants to savings grows your savings faster.
The 50/30/20 rule splits your after-tax income three ways: half for needs like rent, groceries and bills, 30% for wants, and 20% for savings and paying down debt. Put in what you take home each month and this works out what each share comes to, so you can see where your own spending sits against it. It's a rule of thumb, not a law: if rent alone eats half your pay, the split will look different, and that's normal in a lot of Australian cities.
Prices rose 4.3% in the year to September 2026, going by the ABS's monthly measure. The trimmed mean, which leaves out the biggest price swings, was 3.6%.
As of 7 November 2026, the highest savings rate is 5.75%, from Defence Bank Limited's iSaver, while the typical best across 73 institutions is 4.85%. The highest 12-month term deposit rate is 5.75%, from Suncorp Bank's Term Deposit, while the typical best across 65 institutions is 5.30%.
Sarah takes home $4,000 a month. The split gives $2,000 for needs, $1,200 for wants and $800 for savings, so a Bali trip has to come out of the $1,200 or the $800.
She sees she should limit discretionary spending to $1,200/month, helping her resist impulse online shopping.
The Patels earn $6,200/month after tax. Using the planner, they see $3,100 for needs, $1,860 for wants, $1,240 to savings. They refine categories to stay on track and build a holiday fund.
Having clear targets helps the family discuss and agree on priorities, reducing money stress.