Managing Finance - 50-30-20 Rule

This is how you should split up your net income(in hand salary)...

• 50% of your income should pay your needs(Things you can't live without)
  • Rent
  • Groceries
  • etc.
• 30% for your wants(good to haves)
  • Travel
  • Eating out
  • Hobbies
• 20% Savings / Investments / Debt payments
  • Emergency Fund - 6-12 months of living expense.
  • Retirement Planning

PS: I've seen other sources where 30 and 20 are interchanged.