The 50/30/20 budgeting rule – adapted for South Africans

The classic budgeting rule splits income into needs (50%), wants (30%), and savings (20%). Here’s how to adjust it locally:

1. Needs (55%)

• Rent/bond: Cap at 30% of income (hard in cities like Johannesburg – consider flat-sharing).
• Utilities: Add load-shedding backups (e.g., inverter payments) to this category.

2. Wants (25%)

• Trim “luxuries” like takeaways or DStv Premium during high inflation.

3. Savings (20%)

• Prioritise emergency funds (6 months’ expenses) before investing.

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