The 50/30/20 Rule is a budgeting guideline that helps individuals manage their finances effectively. According to this rule, you should allocate 50% of your income to needs, such as housing and groceries, 30% to wants, like entertainment and dining out, and 20% to savings and debt repayment. This simple framework makes it easier to track spending and prioritize financial goals. By following the 50/30/20 Rule, you can create a balanced budget that supports both your immediate lifestyle and long-term financial health. This approach encourages mindful spending and helps build a safety net for emergencies, retirement, or other future expenses.