what is the 50 30 20 rule 
the 50 30 20 rule is a budgeting technique that was created by senator elizabeth warren the idea is that people will be able to more easily achieve greater financial stability by dividing specific shares of their spending between distinct categories the three categories of the 50 30 20 rule are 50 allocated to needs i e rent healthcare etc 30 to wants i e travel entertainment etc and 20 toward savings debt i e retirement student loan payments etc 