The 50/30/20 rule: how to adapt it to a budget in Morocco
AmanaFi team · Updated · 1 min read
The 50/30/20 rule suggests putting 50% of net income into needs, 30% into wants and 20% into savings. It is a starting point to adjust to your situation, not a law.
Where the rule comes from
It was popularised by US senator Elizabeth Warren and her daughter Amelia Warren Tyagi in a personal finance book. Its strength is simplicity: three blocks instead of twenty lines.
Why it often bends
When rent, school fees or family support exceed half of income, needs climb to 60 or 70%. In that case do not give up saving: lower it temporarily to a small, regular percentage.
- Needs: housing, food, transport, health, school.
- Wants: going out, clothes beyond the necessary, leisure.
- Savings: emergency fund, projects, debt repayment, sadaqah.
An adapted version
Put sadaqah and zakat in the savings and giving block, and treat debt repayment as saving while the debt is heavy. Readjust every quarter, when income or costs change.
Frequently asked
Does the 50/30/20 rule work on a low income?
Yes, if you adjust it: needs weigh more, so saving starts lower. Even 5% set aside each month builds the habit, and you raise the rate as income grows.
Put it into practice with AmanaFi
Period budget, projects, debts and loans, zakat: free, on mobile.
Open the app