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What is a 70/20/10 budget?

Like other budgeting guidelines, such as the 50/30/20 rule, the 70/20/10 budget offers a framework that tells you how much of your income to direct toward spending, saving, and debt repayment.

How does a 70/20/10 budget compare to a 50/30/20 budget?

How the 70/20/10 Budget Compares to the 50/30/20 Budget The 70/20/10 budget is similar to another money management method you may have heard about — the 50/30/20 budget. With the 50/30/20 rule, half your income goes to needs, 30% goes to wants and 20% goes to savings and other financial goals like investing or paying off debt.

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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