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 principle of budgeting?

What’s the 70 20 10 Principle of Budgeting? With the 70/20/10 budget, you’ll start with your monthly after-tax income. Then, divide the money into 70% for needs and wants, 20% for savings, and 10% for debt repayment or donations. With this rule, you’ll see exactly where your money goes, and if you’re overextending in certain areas.

What is the 70/20/10 rule of budgeting?

Following the 70/20/10 rule of budgeting, you separate your take-home pay into three categories based on a specific percentage. These buckets are designed to handle living costs and other monthly expenses without draining your bank account.