What is the 50/30/20 rule for managing money?

The 50/30/20 rule for managing money makes budgeting easy as pie! Imagine a circle (or a pie) cut into ten slices. Five of those slices, or 50%, should go towards your needs, like bills or groceries. Three slices, or 30%, can go towards your wants. The remaining two slices, or 20%, should go towards your savings.