What is the 50-15-5 budgeting rule?

The 50-15-5 rule is a budgeting strategy that suggests putting 50% of a person's take-home salary into essential expenses (like housing, food, transportation, etc), 15% into retirement savings and 5% for short-term savings or an emergency fund. The remaining 30% of the take-home salary is left to the discretion of the individual to spend as they like.