What is the 70/20/10 rule?

The 70/20/10 rule is a guideline that balances spending, saving, and debt repayment. It's a simple method to get started managing money but should be adjusted to fit your needs. One of the limitations of the 70/20/10 rule is that it doesn't separate essential and nonessential expenses. Budgeting is a great way to gain control over your income.

What is the 70/20/10 budget rule?

The 70/20/10 budget rule is a money management strategy you can use to dictate where you want your income to go. It involves separating your take-home pay into three buckets and dividing each into the following percentages: Seventy percent for monthly bills and daily spending.

Is the 70 20 10 model prescriptive?

The 70:20:10 model is not prescriptive. Author and learning and development professional Andy Jefferson asserts it "is neither a scientific fact nor a recipe for how best to develop people". [ 4] Every business has its own optimisation levers, and it will be imprudent to apply the 70:20:10 model to all businesses.