What is the 60/30/10 budgeting rule?

The 60/30/10 budgeting rule prioritizes financial goals over spending. Because of the large percentage allocated to savings or debt payoff, it’s not a budgeting style that is suited to everyone’s circumstances. For example, if you are just starting your first budget, I don’t recommend this method for you.

Is 60/30/10 a good budget?

The 60/30/10 budget, while similar to the 50/30/20 method, may be a better fit for people who have to spend most of their income on non-negotiable needs, or those who have a lower income. Here’s what you need to know before you try out this budgeting method. NerdWallet breaks down your spending and shows you ways to save.

What is the 60/30/10 rule?

The 60/30/10 rule budget uses 3 categories of spending to manage your finances. The specific percentages are used to determine what portion of your current income will be applied to which category. First, 60% of your after-tax income will be dedicated to savings, investing, or debt payoff.