Budgeting is a topic that should be taught in primary school. But since most people aren’t taught that’s the reason I’m here. 50/30/10/10 rule makes budgeting easy to articulate and implement. 50/30/20 rule is calculated from income after tax, that is the take home money. 50% for needs, 30% for wants and 10% for savings and 10% debt repayment.

50% Needs
This entails things like rent, transportation, food, utility bills like water and electricity, insurance payments, internet etc. This are things you need to pay in order to live a comfortable life. I’ll bring an example below.
30% Wants
I love to say this is a goal account or sinking funds. This entails things like vacations, buying sofa sets, books, new curtains, new fridge etc. This is for lifestyle management so that you live and enjoy life.
10% Savings
This goes to your money market funds, special funds, savings bank account etc. Its for saving with the goal of investments. It doesn’t matter the amount of money you earn, what matters is that you save 10%.
10% Debts
This goes towards debt as an extra payment. This is so that you can finish your debt early enough and even reduce on interest you are paying. For instance, if you have a student loan that is being deducted every month, additional payments would make the loan progress faster.
An Example
This is an example of someone earning 100,000 kenyan shillings
| 50% Needs- 50,000 | 30% Wants-30000 |
| 10% Savings-10000 | 10% Debts-10000 1. Sacco loan 2. Bank loan 3. |























