What are some alternatives to the 60-20-20 rule?

Take a look at some common alternatives to the 60-20-20 rule. The 50-30-20 budget divides your take-home income into three categories. You’ll put 50% of your paycheck into needs, 30% into wants, and 20% into savings. You may want to try this method if your savings are on track with your goals.

What is the 60/20/20 budget rule?

The 60/20/20 budget rule applies a simple approach to how you should allocate your monthly income. In this method, 60% of your monthly income goes to monthly living expenses. These can be fixed costs, meaning you pay the exact same amount each month, such as with mortgage payments. Or they can be fluctuating, like an electric or phone bill.

How does the 60 20 20 system work?

The 60 20 20 system is simple to set up and adhere to, just like other percentage budgeting methods. In order to automatically budget using the 60 20 20 rule, you can use your tools, such as direct deposits and automatic savings transfers.