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The 70/20/10 Budget Rule, Explained (And Its Biggest Downside)
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NerdWallet
SUBSCRIBE FOR FREEHow does the 70/20/10 budget compare with other options?
Because in the 60/30/10 budget , needs and wants together could add up to $3,600.
70/20/10 factors in investmentsWhile the other two budgets are vague about investing, the 70/20/10 budget builds it right in.
Downsides of the 70/20/10 budgetNeeds and wants are lumped togetherThe 70/20/10 budget is the only percentage-based budget that combines necessary spending (housing, transportation, utilities, food) with “wants” (dining out, subscriptions, gym memberships and other “extras”).
The 70/20/10 budget might be good for …There are a few groups of people who might find this budget helpful.