Split your after-tax income into needs, wants and savings the way Elizabeth Warren and Amelia Warren Tyagi lay it out in All Your Worth, then see how what you really spend compares.
After-tax income $4,000.00 a month · $48,000.00 a year
| Bucket | Share | Target | Actual | Difference |
|---|---|---|---|---|
| Needs | 50% | $2,000.00 | $2,250.00 | $250.00 over |
| Wants | 30% | $1,200.00 | $1,150.00 | $50.00 under |
| Savings & debt | 20% | $800.00 | $600.00 | $200.00 short |
| Total | 100% | $4,000.00 | $4,000.00 |
Guideline
Your spending
In All Your Worth (2005), bankruptcy scholar Elizabeth Warren and her daughter Amelia Warren Tyagi suggest dividing after-tax income into three parts: 50% for must-haves, 30% for wants and 20% for savings. The calculator turns your income into those three monthly targets, then lines up what you actually spend beside them.
Start from take-home pay, after income tax and anything deducted at source. If you are paid every two weeks or every week, choose that and the calculator converts it to a monthly figure (26 or 52 pay days spread over 12 months), so a $2,000 fortnightly pay becomes $4,333.33 a month.
Worked example. With $4,000 a month the targets are $2,000 for needs, $1,200 for wants and $800 for savings. Spending $2,250 on needs puts that bucket 6.3 points above its 50% share; the statement marks it in red ink and shows that savings are $200 short of the target. The rule is a yardstick, not a verdict: where housing costs are high, needs often take more than half, and the useful question is which bucket the gap comes from.
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Both, split by purpose. The minimum payment you must make on a loan or card is a need, because missing it has consequences. Anything you pay above the minimum to clear the balance sooner goes in the savings and debt bucket, since it improves your future position just as saving does.
No, it still shows where the pressure is. Open "Change the split" and try a version that matches your situation, such as 60/30/10, then compare it with your real spending. The calculator only does the arithmetic; how to close a gap depends on your circumstances.
No. The figures on this page are worked out in your browser and are not stored or sent anywhere. Only your currency choice and light or dark theme are remembered, in this browser's local storage.