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The 50-30-20 rule is a budgeting technique that involves dividing your after-tax income into three primary categories based on percentages. The categories are:

1. Needs: This category includes expenses that are necessary for survival, such as rent/mortgage, utilities, groceries, transportation, and insurance. The rule recommends spending up to 50% of your after-tax income on needs.
2. Wants: This category includes discretionary expenses, such as dining out, entertainment, hobbies, and vacations. The rule recommends spending up to 30% of your after-tax income on wants.
3. Savings and Debt Repayment: This category includes money you save for emergencies, retirement, or other long-term goals, as well as debt repayment. The rule recommends allocating at least 20% of your after-tax income to savings and debt repayment.

The 50-30-20 rule is a simple and effective way to structure your finances, but it may not work for everyone. Depending on your income and where you live, you may need to adjust the percentages to suit your reality. It's important to track your expenses and maintain consistency to successfully adopt this budgeting guideline.