Planning · budget
Budget Planner
Plan your monthly money with the 50/30/20 rule and see what's left over.
The 50/30/20 budget, simply
Split your take-home pay into three buckets: about 50% for needs (rent, food, transport, bills, minimum debt payments), 30% for wants and 20% for savings. It's a starting point: in Toronto or Vancouver rent alone can pass 40%, so many people trim wants to keep savings at 20%.
Savings work hardest in the right account: a TFSA for flexible goals, an RRSP for retirement and a tax refund, an FHSA for a first home. Paying off a card? Plan it with the credit card payoff calculator.
Frequently asked questions
What is the 50/30/20 rule?
Spend about 50% of your take-home pay on needs, 30% on wants and put 20% into savings or extra debt payments.
How much should I spend on rent in Canada?
A common guideline is no more than 30% of your gross income, or about 35% to 40% of take-home pay. In expensive cities many people spend more and cut wants to compensate.
How much should I save each month?
Aim for 20% of take-home pay. If that's not possible yet, start with a fixed amount on every payday and raise it when your pay goes up.
Should I budget with gross or take-home pay?
Take-home pay: it's the money that actually reaches your bank account after tax, CPP and EI.
Make the most of your pay
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