When you first start tracking expenses, the simplest method is the 50/30/20 rule: 50 % of income goes to essentials, 30 % to wants, and 20 % to savings. It’s easy to remember, but it can be too rigid if your rent is 60 % of your take‑home pay. In that case, tweak the percentages to 60/25/15. The key is to adjust the split so that every dollar is assigned a purpose before you spend.