The article provides a comprehensive overview of the **40/30/20 rule**, a budgeting strategy designed to help individuals manage their finances more effectively. The main keyword, “What is the 40/30/20 rule,” indicates that the content addresses the search intent of users looking for an explanation of this budgeting method.

The article outlines how the 40/30/20 rule divides income into three categories: 40% for needs, 30% for wants, and 20% for savings and debt repayment. It offers practical insights into how this framework can simplify budgeting, promote financial stability, and adapt to varying economic conditions.

This content is valuable for webmasters seeking to attract readers interested in personal finance, as it provides actionable information that can enhance financial literacy and encourage better money management practices.