If you carry a credit card balance, the minimum payment is a "need" and it counts toward the 50 percent. Anything extra is an additional debt repayment, which goes toward this 20 percent category. If you carry a mortgage or a car loan, the minimum payment is a "need" and any extra payments count toward "savings and debt repayment."
An Example of the 50ቺተ Plan. Let's say your total take_home pay each month is ū귔. Using the 50┺┰ rule, you can spend no more than ũ껎 on your needs per month. You probably can't afford a ũ귔_a_month rent or mortgage payment, at least not unless your utilities, car payment, minimum credit card payments, insurance premiums, and other necessities of life don't exceed 趚 a month.