In this popular budgeting technique, costs are split into three main categories in chronological order.
50: You should be using no more than 50% of your take-home pay on all the essential expenses in your life (necessities).
20: Put a minimum of 20% of your paycheck towards a strong financial standing by contributing to savings or debt payments.
30: No more than 30% of your take-home pay should be used on lifestyle choices, such as entertainment, shopping, fine dining, cable, and Internet.
(Image via Flickr)