How To Use This Budget
Start with what actually reaches your bank account each month. Then fill in what you spend, using your last two or three months of statements where you can. Guesses tend to run low.
Needs are the bills you must pay to keep your household running. Wants are the things you could cut or delay. Saving and investing is money you set aside for later. If the result shows a shortfall, the wants group is usually the first place to look, then any needs that can be reduced over time, such as a phone plan or a loan that can be repriced.
The 50/30/20 split is one common yardstick: about half on needs, under a third on wants, and at least a fifth saved. It is a rule of thumb. MoneySense's own guidance is simpler: put needs before wants, and aim to save at least 20% of take-home pay, or more if you can.