Budgeting means deciding where your money goes before you spend it, not afterwards. Most methods fail because they are too complicated to survive the second month. The 50/30/20 rule is the opposite: simple enough to remember.
The rule in one line
Split your monthly net income (after tax and social contributions) into three parts:
- 50% needs: rent, health insurance, energy and internet, groceries, transport, minimum loan payments.
- 30% wants: eating out, travel, clothes, subscriptions, hobbies, gifts.
- 20% future: savings, paying off debt faster, investing, pension top-ups.
The percentages are a starting point, not a law. In expensive cities such as Zurich, Geneva or Munich, needs often reach 60%. That is fine as long as the difference comes out of wants, not out of savings.
Example: a net salary of CHF 5,500 in Switzerland
| Part | Share | Amount | Example categories |
|---|---|---|---|
| Needs | 50% | CHF 2,750 | Rent 1,600, health insurance 380, groceries 450, transport 120, energy and internet 110, Serafe and phone 90 |
| Wants | 30% | CHF 1,650 | Restaurants, travel, clothes, subscriptions |
| Future | 20% | CHF 1,100 | Emergency fund, pillar 3a |
The same split for a net salary of EUR 2,800 in Germany: 1,400 / 840 / 560 euros.
In Switzerland, remember that income tax is often not deducted from your salary. If you pay it yourself, set aside a monthly amount inside "needs" so the tax bill is not a surprise.
Five steps to make it work
- Write down your real net income. What actually lands in your account, not the gross figure in your contract.
- List your fixed costs. Rent, insurance, subscriptions, loan payments. Enter them once as recurring entries so they come up each month by themselves.
- Set a budget per category. Not just three totals: "Groceries 450" and "Restaurants 250" separately. A single overall budget never warns you in time.
- Pay yourself first. On payday, move the 20% to a savings account. What is left at the end of the month never is.
- Look once a week for five minutes. Not daily with stress, not monthly with surprise. A weekly glance is enough to adjust.
Setting it up in RizKharj
In RizKharj, go to Settings › Accounts & budget and give each category a monthly (or weekly) budget. The home screen shows what is left in each budget, and reports show every category's share over 6 or 12 months. For the "future" part, create a savings goal such as "Emergency fund CHF 10,000" with a deadline and watch the progress. Everything works offline and without an account.
Frequently asked questions
What if my income changes every month?
Use the average of the last three months and build the budget on your weakest month. In better months, the extra goes to savings.
Where do debt payments belong?
The minimum payment is a need. Anything extra you pay to clear the debt sooner comes out of the 20% for the future.
Isn't 20% savings too much?
If you are just starting, begin with 10%, but never zero. The monthly habit matters more than the number.