Monthly budget planner
Split your take-home pay into needs, wants and savings with the popular 50/30/20 rule, then see a suggested amount for each part of your budget.
What is the 50/30/20 rule?
It's a simple way to budget without tracking every rand:
- 50% for needs: rent or bond, transport, groceries, electricity and water, insurance, medical aid, school fees and minimum debt repayments.
- 30% for wants: eating out, takeaways, streaming, data top-ups beyond the basics, clothes, holidays and hobbies.
- 20% for your future: an emergency fund, TFSA or retirement annuity, and paying off debt faster.
Many South Africans spend far more than 50% on needs, especially with high rent and transport costs. That's normal. Adjust the percentages above to something realistic, then try to grow your savings slice over time, for example by saving half of every increase.
Worked example: R20 000 take-home pay
With R20 000 a month after tax and the standard 50/30/20 split:
- Needs (50%): R20 000 × 0.5 = R10 000 for rent, transport, groceries, utilities and insurance.
- Wants (30%): R20 000 × 0.3 = R6 000 for eating out, clothes and subscriptions.
- Savings and debt (20%): R20 000 × 0.2 = R4 000 a month, or R48 000 a year.
The calculator then splits each part into suggested categories. Want to know how long R4 000 a month takes to reach a target? Try the savings goal calculator.
Frequently asked questions
How much of my salary should go to rent?
A common guideline is no more than 30% of your take-home pay on rent or a bond. Banks use a similar limit (about 30% of gross income) when approving home loans.
How big should my emergency fund be?
Aim for 3 to 6 months of essential expenses, kept in an easy-access savings or money market account. Start with one month and build from there.
Should I save or pay off debt first?
Build a small emergency fund first (even one month of expenses), then put extra money towards your most expensive debt, usually credit and store cards, before investing more.