Answer: 1) Needs (50%): This category includes expenses that are necessary for survival, such as housing, food, utilities, and transportation.
2) Wants (30%): This category includes expenses that are not necessary for survival but enhance your quality of life, such as eating out, shopping, vacations, and entertainment.
3) Savings (20%): This category includes money set aside for emergencies, debt repayment, and future goals such as retirement.