What is a 70/20/10 budget?

The 70/20/10 budget is a percentage-based money management style that helps you make room for saving, investing, paying down debt and donating. Rather than managing your gross income down to the last penny, this simple budget method is just a general guideline that can help you set realistic financial goals. How 70/20/10 Budgeting Works

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.