Many people create a budget to give their spending some structure. Without a plan in place for your money, it’s easy to overspend or fall behind on your financial goals.
But budgeting doesn’t have to mean tracking every dollar or giving up the things you enjoy. The 70-20-10 budget is a simple money management strategy that divides your after-tax income into three categories: spending, savings, and debt repayment or giving.
By assigning a percentage to each financial priority, this method can help you build healthier money habits without the complexity of more detailed budgeting systems. Here’s how it works.
What is the 70-20-10 budget rule?
The 70-20-10 rule is a budgeting strategy that breaks your net income…