Login
Log out
Menu
Close
About your Plan
About your Plan
About your Plan Overview
Getting started
Back
Getting started
Introducing your Plan How savings are invested How contributions are made Your Plan checklist
Welcome to Fidelity
Back
Welcome to Fidelity
About Fidelity Diversity and inclusion
I want to...
Back
I want to...
Maximise my contributions Nominate my beneficiaries Download the app
Overview of About your Plan section
Grow & manage your money
Grow & manage your money
Savings
Back
Savings
Saving in your 20s and 30s Saving in your 40s and 50s Saving in your 60s
Investing
Back
Investing
How savings are invested Investing basics What is a default investment? Deciding where to invest
I want to...
Back
I want to...
Maximise my contributions Nominate my beneficiaries
Accessing your money
Your financial wellness
Your financial wellness
Your financial wellness Overview
Feel good with Fidelity
Back
Feel good with Fidelity
Understand your financial wellness Budgeting Debt Savings Protection Workplace Workout Invest in yourself
Useful information
Back
Useful information
Learn about volatility
Overview of Your financial wellness section
Budget. Does anyone like that word? How about this instead - the 50/15/5 rule?
It's our simple rule of thumb for saving and spending: aiming to allocate no more than 50% of take-home pay to essential expenses, 15% of pre-tax income to retirement savings, and 5% of take-home pay to short term savings.
Whatever's left over can then be spent as you choose - on leisure, restaurants, holidays, etc.
Consider the Fidelity 50/15/5 rule
50%
Essential expenses
15%
(including employer contributions) towards retirement
5%
Short term savings for unplanned expenses
Why 50/15/5? We looked at hundreds of different scenarios to come up with a spending and saving guideline that would help people save enough to retire. Our research suggests that by sticking to this rule, you'll have a good chance of staying on top of things financially now - and maintaining your current lifestyle in retirement.
Now, let's be completely honest. With housing, food and energy costs as high as they are right now, it could well be that the
50/15/56 split isn't realistic for you. Instead, use it as a starting point, adjusting the proportions to suit your own wallet. Or
simply keep it at the back of your mind as a goal to reach in the future.
Download your free budget planner
Our simple budget planner can give you an overview of how and where you're spending your money each month
Feel good about your money
Discover how measure your financial wellness, and some simple steps to improve how you feel about your money.
Your financial wellness
About us
About us
- About Fidelity International
- Contact us
- Sustainable Investing
- Online security
- FIL Life Insurance (Ireland) Solvency and Financial Condition Report 31 December 2022
- FIL Life Insurance (Ireland) DAC Solvency and Financial Condition Reports for Prior Periods
Important policies
Important policies
- Whistleblowing policy
- Accessibility
- Modern slavery statement
- Complaints procedure
- Cookie policy
- Security and privacy
- Financial crime
- Sustainability Related Disclosures
Other Fidelity Sites
Other Fidelity Sites
- Fidelity International
- Global Workplace Investing
- Personal Investing
- Fidelity for Investment Professionals
- Press and media
This information is not a personal recommendation for any particular investment, you are responsible for deciding whether an investment is suitable for you. In doing so, please remember that past performance is not a guide to future performance, the performance of funds is not guaranteed and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circ*mstances and tax rules may change in the future. You should regularly review your investment objectives and choices and if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. FIL Life Insurance (Ireland) DAC is a Designated Activity Company limited by shares and registered in Ireland. Registered Office: Georges Quay House, 43 Townsend Street, Dublin 2, D02 VK65, Ireland. Company No. 513819. Directors: Brendan McCarthy, Rosemary Commons, Marianne Jaekel, Gilles Roy (French) and Helena Cooney. FIL Life Insurance (Ireland) DAC is regulated by the Central Bank of Ireland.
© FIL Limited 2024
