If you’re new to budgeting, figuring out how to manage your money can feel overwhelming. Not only do you need to organize, but you also must make decisions about how to spend your cash. A good way to keep it simple is the percentage-based budget known as the 50/30/20 rule.

The idea is to divide your income into three categories, spending 50% on needs, 30% on wants, and 20% on savings. Needs are all your bills, including taxes, housing expenses, transportation, etc. Wants are things like eating out and buying new clothes. Savings is self-explanatory, but you can divide that into 10% for retirement savings and 10% for an emergency fund.