Budgeting feels scary to many, but it's actually simple if you use the 50/30/20 Rule — adapted for South African households.
The 50/30/20 breakdown
The 50/30/20 rule divides your after-tax income into three categories: 50% for needs, 30% for wants, and 20% for savings and debt repayment. This simple framework helps you prioritize your spending while ensuring you're building wealth and managing debt.
50% Needs:
rent, groceries, transport, electricity, insurance.
30% Wants:
eating out, entertainment, subscriptions, clothes.
20% Savings/Debt Repayment:
emergency fund, investments, or extra debt payments.
Local example (monthly income R20,000)
- • Needs: R10,000 (rent, groceries, petrol, medical aid)
- • Wants: R6,000 (restaurants, Netflix, takeaways, clothing)
- • Savings/Debt: R4,000 (paying down loan, saving for emergencies)
Tools to help
- • Banking apps (Capitec, FNB, TymeBank) with expense tracking
- • Free apps like 22seven for automatic categorisation
- • A simple Excel sheet or even a notebook
Takeaway: A budget is not about restriction — it's about clarity. By following 50/30/20, you'll always know where your money is going, and you can adjust before it runs out.