The 60% budgeting rule, or the 60% solution, is a common breakdown of income percentages used for budgeting. There are a few variations to the 60% budgeting solution, but each maintain 60% of your income as the largest portion.

What is the 60% Budget?

In the 60% budget method, your income is divided up into two or more different categories, depending on the variation you choose. We’ll cover four common variations: 60/40, 60/20/20, 60/30/10, and 60/10/10/10/10.

60/40 Rule

  • 60% – Essential Fixed Expenses
  • 40% – Savings, Variable Expenses, & Entertainment

The 60/40 budget only groups your expenses into two broad categories. 60 percent is reserved for necessary expenses like housing and food. The remaining 40 percent goes to everything else like variable more optional expenses, as well as saving and investing.

60/20/20 Rule

  • 60% – Essential Fixed Expenses
  • 20% – Savings
  • 20% – Entertainment

The 60/20/20 budget is a frequently used version of the 60% rule. This version breaks down your expenses into three categories. The largest 60 percent portion is still reserved for those necessary expenses. The remainder is a bit more structured, allocating 20 percent each to savings and entertainment costs.

60/30/10 Rule

  • 60% – Saving & Investing
  • 30% – Needs
  • 10% – Wants

The final common variation of the 60% rule is 60/30/10. In this budget, saving and investing is very prioritized. This is a great budget for those with higher incomes or a low debt-to-income (DTI) ratio. Instead of fixed expenses, the 60 percent portion is reserved for saving and investing. 30 percent is set for those essential costs. The remaining 10 percent is for more flexible spending.

60/10/10/10/10 Rule

  • 60% – Expenses
  • 10% – Retirement Savings
  • 10% – Long-term Savings
  • 10% – Short-term Savings
  • 10% – Casual Spending

The 60/10/10/10/10 split budget is the most specific version of the 60% rule. This version breaks down your expenses into five categories. The largest 60 percent remains for expenses. The remainder is split evenly four ways, 10% each, for various saving goals (retirement, short-term, long-term) and flexible spending.

60% Budget Calculator

Choose which version of the 60% budget rule you’d like to see and input your income to see how the budgets would apply to you! This can be income for any range that you choose: weekly, biweekly, monthly, annual salary, etc.

60% Budget Google Sheet

Are you a spreadsheet person? Cool, us too! That’s why we’ve put together this Google Sheet resource for calculating different budgets, including each of the variations of the 60% rule that we covered here.


Make a copy of our spreadsheet and check it out!

60% Budget Frequently Asked Questions (FAQs)

If you’re unsure about anything pertaining to the 60% budget, check out some of these frequently asked questions.

What is the 60% budget?

The 60% budget is a simple way to budget your income. It comes in a few variations, where you divide your income into two or more categories. 


In the 60/40 rule, 60% is for essential expenses and 40% is for savings and variable expenses. 


In the 60/20/20 rule, 60% stays for essentials, but savings and variable expenses are split 20% each. 


In the 60/30/10 rule, the 60% prioritizes saving, while 30% is for essentials and 10% is for flexible spending. 


Finally, in the 60/10/10/10/10 split, 60% is for expenses, while the remainder is divided equally between retirement, short-term, and long-term savings, in addition to flexible spending.

Which version of the 60% budget should I choose?

Different budgeting methods will work better for some people and worse for others. The 60/40 version is less structured, but gives a general guide. The 60/20/20 and 60/10/10/10/10 versions are similarly allocated, prioritizing expenses, but are a bit more structured. The 60/30/10 version is better reserved with those for higher incomes and/or low expenses since saving and investing is so emphasized. 

How do I know if I'm following the 60% budget?

As you can see by the variations that exist by the 60% budget, you can modify this “rule” to best fit your needs. You can determine how strictly you follow this budget.

Is the 60% budget realistic?

The 60% budget will work better for some people than others. Testing out different budget methods and pushing yourself to spend more wisely is what we’d recommend for choosing the best budget for you.

Other Percentage-Based Budgets

50/30/20 Budget Rule

✔️ Best for those with higher expenses or lower income

70/20/10 Budget Rule

✔️ Best for those with higher expenses or lower income

80/20 Budget Rule

✔️ Best for the financially disciplined with higher expenses