50/30/20 Rule: 50% needs, 30% wants, 20% savings.
Balanced starting point when essentials fit near half of income. See Moroccan salary examples and how SmartJib calculates it automatically.
What is the 50/30/20 rule?
The 50/30/20 rule is the most celebrated intuitive budgeting framework worldwide. It divides your after-tax income into three distinct buckets: 50% for non-negotiable needs, 30% for discretionary wants, and 20% for future savings.
Instead of micromanaging dozens of tiny sub-categories, 50/30/20 gives you a macroscopic sanity check on your financial health. In SmartJib, selecting 50/30/20 during setup automatically calculates your target monthly allowances in Moroccan Dirhams (MAD) or any of our 12 supported currencies.
Moroccan salary breakdown: 12,000 MAD / month
Here is how a typical 12,000 MAD monthly take-home income maps into the 50/30/20 framework:
6,000 MAD
- • Apartment rent: 3,500 MAD
- • Groceries & souk food: 1,800 MAD
- • Electricity, water, wifi: 700 MAD
3,600 MAD
- • Dining out, cafes & takeout: 1,500 MAD
- • Entertainment, weekend trips: 1,200 MAD
- • Hobbies & personal shopping: 900 MAD
2,400 MAD
- • Emergency cash buffer: 1,200 MAD
- • Darat (tontine) or investment: 1,200 MAD
You can customize every single category inside SmartJib according to whether your payments occur in cash from your wallet or by card from your bank.
When 50/30/20 fits (and when to adjust)
The 50/30/20 rule works best when your essential living costs naturally hover around half of your earnings. However, if you rent an apartment in Casablanca, Rabat, or Marrakech where rent alone can claim 40% to 50% of your earnings, forcing a 50% needs limit will lead to frustration.
If your essentials exceed 50%, SmartJib provides alternative proven methods:
- Envelope Budgeting (55/35/10): Gives 55% to needs and enforces tangible category limits—ideal for cash spending.
- Zero-Based Budgeting (60/25/15): Allocates 60% to essentials and gives every single dirham a defined job.
- Pay Yourself First (45/25/30): Prioritizes aggressive 30% savings on payday before optional expenses.
Frequently asked questions
Should I calculate 50/30/20 before or after taxes?
Always use your net take-home income (the exact dirhams deposited into your bank account after CNSS, AMO, and income tax deductions).
Where do debt payments belong?
Minimum loan or debt payments belong under Needs. Any extra accelerated debt payoff beyond the minimum belongs under Savings.
Does SmartJib require bank credentials?
No. SmartJib is built without bank connections. You log transactions manually in seconds with full local privacy.