50/30/20 rule: 50% needs, 30% wants, 20% savings.

What is the 50/30/20 rule?

The 50/30/20 rule divides your after-tax income into three buckets: 50% for non-negotiable needs, 30% for discretionary wants and 20% for future savings.

Instead of micromanaging dozens of sub-categories, it gives you a macroscopic sanity check. In SmartJib, choosing 50/30/20 during setup calculates your monthly allowances in dirhams or any of the 12 supported currencies.

Moroccan salary breakdown: 12,000 MAD / month

Here is how a typical 12,000 MAD take-home income maps into the framework:

• Every category can be set according to whether you pay in cash from the wallet or by card from the bank.

When 50/30/20 fits (and when to adjust)

The rule works best when essential living costs hover around half of your earnings. If you rent in Casablanca, Rabat or Marrakech where rent alone can claim 40–50% of income, forcing a 50% needs limit leads to frustration.

When essentials exceed 50%, the other three SmartJib strategies fit better:

• Envelope budgeting (55/35/10): more to needs, with tangible category limits — ideal for cash spending.
• Zero-based budgeting (60/25/15): 60% to essentials, and every dirham gets a defined job.
• Pay yourself first (45/25/30): an aggressive 30% saved on payday, before optional expenses.

Frequently asked questions