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Is a 70/20/10 budget right for You?

For a more structured budget, try a bare-bonesapproach. Conversely, if you’re someone who can comfortably spend less than 70% of their income and you want to use a much larger portion of your income to pay off debts or to save up to retire early, the 70/20/10 budget may not be the best fit for you.

What is the 70/20/10 budgeting method?

That’s where the 70/20/10 budgeting method comes in to disrupt that paycheck-to-paycheck cycle, curb discretionary spending and make sure the way you spend money aligns with your personal finance priorities.

How do I make a 70/20/10 budget?

You can grab your 70/20/10 budget template right here (it’s free). The first step is to figure out how much money you’ll have left after taxes and payroll deductions from your gross monthly income (this is your net income, also called your take-home pay). You can deduct a standard 30% from your gross pay if you just want to ballpark it.

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