70/20/10 Budget Rule: Calculator, How To, & Google Sheets Resource

One of the most common percentage-based budgets is the 70/20/10 budget, which can be a great option for people that have higher expenses or limited income.

With the 70/20/10 budgeting rule, your money is divvied up into three different categories, one with 70%, one with 20%, and the other with 10%.

The first section is the 70 percent area, for living expenses. This can include mortgages, cost of living and other things needed to survive and make a living.

The 20 percent piece of the pie is for savings or debt. If you have debt, you’ll want to quickly eliminate that because odds are your debt is costing you more than your investments are earning. The quicker you eliminate your debt, the quicker you can save more and build your nest egg for emergency or retirement.

The final 10 percent of the total is a bit more flexible spending, but with a purpose. This is for items such as additional saving, investing, giving, or for fun. This cash can be used a little more freely but should not be wasted. The goal is to ensure your money is working just as hard for you as you worked to earn it.

Input your income in the highlighted field to see how the 70/20/10 budget rule would apply to you! This can be income for any range that you choose: weekly, biweekly, monthly, annual salary, etc.

Are you a spreadsheet person? Cool, us too! That’s why we’ve put together this Google Sheet resource for calculating different budgets, including the 70/20/10 rule.

Make a copy of our spreadsheet and check it out!

If you’re still wondering about any specifics to the 70/20/10 budget, here are answers to some of the most frequently asked questions.