Milvionne Chery Copeland, Writer
@milvionne_copeland
The best way to budget an income of $4,000 per month is to allocate 50% ($2,000) to needs, 30% ($1,200) to wants, and 20% ($800) to savings. The 50/30/20 budget rule allows you to prioritize your needs, while still having enough room in your budget to save money for future expenses.
If the 50/30/20 budget rule is not working for you, you can try other budgeting strategies, like the 70/20/10 rule or zero-based budgeting.
Ways to Budget $4,000 a Month
50/30/20 rule: Split your monthly income into three categories, with $2,000 (50%) going to needs, $1,200 (30%) going to wants, and $800 (20%) going to savings.
70/20/10 rule: Allocate $2,800 (70%) of your monthly income to living expenses, $800 (20%) to savings and investments, and $400 (10%) to debt and donations.
60/30/10 rule: Divide your monthly income so that $2,400 (60%) of your monthly income goes to needs, $1,200 (30%) goes to wants, and $400 (10%) goes to savings.
60/20/20: Separate your monthly income with $2,400 (60%) going to needs, $800 (20%) going to wants, and $800 (20%) going to savings.
Zero-based budgeting: You assign every dollar of your $4,000 monthly income to a specific expense (including savings contributions), so that your income minus your expenses always equals zero.
$4,000 Budget Breakdown
Below is a more detailed example of how you could divide your $4,000 per month income among all your expenses.
| Expense | Amount |
| Needs (50%) | $2,000 |
| Rent | $1,000 |
| Gas | $120 |
| Groceries | $400 |
| Utilities | $200 |
| Car loan payment | $120 |
| Insurance | $160 |
| Wants (30%) | $1,200 |
| Entertainment | $600 |
| Dining out | $400 |
| Miscellaneous | $200 |
| Savings (20%) | $800 |
| Emergency fund | $400 |
| Regular savings | $400 |
| Total | $4,000 |
For more advice on how to budget your income, check out WalletHub’s guide to popular budgeting strategies and top budgeting tips.
People also ask
What are considered needs in a budget?
Needs in a budget are essential expenses that you cannot live without, such as your rent or mortgage payment, utilities, and groceries. Needs also include expenses that are critical to your physical and financial wellbeing, such as health care costs and the minimum payments on your credit cards and loans. These expenses should be prioritized in your budget over your nonessential expenses.
Examples of Needs in a Budget
- Rent or mortgage payment...
How much of your income should go to expenses?
You should spend no more than 80% of your income on your expenses, with 50% going to your needs (like housing, food, and utilities) and 30% going to discretionary spending. If you allocate the remaining 20% to savings, you'll be following the popular 50/30/20 rule. Even if you use different budget percentages or categories, keeping your expenses below 80% of your income can allow you to save for the future and help prevent you from...
read full answer by Milvionne Chery Copeland, WriterHow much money should I keep in my savings account?
You should keep three to six months’ living expenses in your savings account, plus a bit extra. Most experts recommend saving enough money to live on for the amount of time it would take you to find a new job if you were to lose yours and adding a little more for emergencies.
How to Determine How Much You Need to Keep in Savings
- Split your purchases into two categories: fixed and...
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