50/30/20
Balanced lifestyle & savings
Split your take-home pay three ways: about 50% for needs (rent, utilities, food, insurance, minimum debt payments), 30% for wants (subscriptions, dining, entertainment), and 20% for savings and extra debt payoff.
It was popularized by Elizabeth Warren and Amelia Warren Tyagi in All Your Worth (2005). The key idea is the needs ceiling: once fixed costs pass about half your income, there's little room left to absorb a surprise.