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What is a 70/20/10 budget?

The 70/20/10 budget offers a simple solution to track expenses, regain control of finances, and achieve savings goals. We’re going to walk you through everything you need to know (and a free printable budget template) about how to use the 70/20/10 budget. This post may contain affiliate links.

What is the 70-20-10 budget rule?

Key Points • The 70-20-10 budget rule simplifies money management by allocating income into three categories: living expenses, savings/debt repayment, and investments/donations. • Living expenses should consume 70% of after-tax income, covering necessities and discretionary spending.

How do you pay off debt if you have a 70/20/10 budget?

Easy Ways to Pay Off Debt. Let’s say you take home $3,000 per month. This is how you would allocate your money if you used the 70/20/10 budget: Designate $2,100 for monthly bills and spending. Deposit $600 into a savings or investment account. Earmark $300 for debt payoff or donations.

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