Money management is 90% discipline and 10% knowledge. The 50/30/20 rule will force you to create a budget and understand where every single one of your money is going.

So here it goes:

50% of your budget should be spent on needs which are the things that are essential to everyday life. (Food, Clothing, Medicine, etc)

30% should be spent on wants which could be classified as things that brings us happiness and satisfaction, but are NOT essential to living. (Dining out, entertainment, travel, hobbies etc)

20% should be spent on savings, paying off debt and retirement planning. (Insurance)