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Home » The 60 30 10 Rule Budget – The Perfect Budget For Long-Term Goals

The 60 30 10 Rule Budget – The Perfect Budget For Long-Term Goals

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The 60 30 10 rule budget is one of the strictest forms of budgeting possible. As the headline mentions, the 60 30 10 rule is a budgeting tool for people striving to achieve their long-term goals and to help individuals overcome their impulsive spending habits. It achieves this by encouraging individuals to put aside 60% of their income for a better tomorrow.

What Is The 60 30 10 Rule Budget?

  • 60% of your income will be allocated to your investment portfolio, savings account, and paying off debt.
  •  30% of your income will be allocated to your living expenses. This includes rent, food, bills, transportation, or any other priority needs, like pharmaceutical needs, food for your pet, etc.
  •  The remaining 10% of your income is free to spend on anything you’d like. This includes getting a new haircut, shoes, a weekend somewhere nice, a dinner, or simply a night out.

Is The 60 30 10 Rule Budget Right For You?

We can’t stress enough that this budgeting rule is made for people with strong wills who are dedicated and disciplined to save or invest 60% of their monthly income. The 60 30 10 rule budget has a single goal – making tomorrow easier and better.

To keep up with the 60 30 10 budget rule, you will have to quit certain wants and guilty pleasures, and you will have to say NO more frequently than you are used to. You will have to skip watching a new movie at the cinema, say no to your friends when they call you for a drink two nights in a row or go to that museum you wanted to visit. Instead, you will be solely focused on improving your personal finance.

This makes it sound so terrible, but the 60 30 10 budget rule will make your life much easier in the future. The 60 30 10 budget rule enables more money to be saved up or appropriately invested. It will help you do the dream job you always wanted, buy the house you fell in love with, be prepared for dark days, or put your kids through college.

At the end of the day, it’s a simple decision, do you want a better today or a better tomorrow?

Advantages And Disadvantages Of The 60 30 10 Rule Budget

As with any budgeting method, it all comes down to comparing the advantages and disadvantages to make a decision. The 60 30 10 rule is similar to others in that view. Therefore, here are the advantages and disadvantages of the 60 30 10 budgeting rule.

Advantages Of the 60 30 10 Rule

  • You will have enough money saved if anything unfortunate happens to you in the future.
  •  Investing the money will help you with inflation, and good investing and trades will help you grow that investment into something serious.
  •  The discipline you will acquire from the 60 30 10 budgeting method will follow you for the rest of your life. You will truly learn the value of money, one of the best habits anyone can have.

Disadvantages Of the 60 30 10 Rule

  • Saying, “I can’t,” becomes a habit. But remember that the goal is to save money. You might miss out on some nights out and experiences because of that.
  •  10% sometimes might not be enough to “live your best life.” It might mean not being able to buy a piece of clothing or traveling that often.

Other Types Of Budgeting

The 60 30 10 budget isn’t the only budgeting rule out there. There are plenty of other budgeting options that might do wonders for you. Here are a couple of different budgeting rules for you to consider:

  • The 70/30 Rule for budgeting. This rule is simple. Essentially, it says that 70% of your income can be spent on your necessities and wants. But 30% will go into your savings account. How you allocate that 70% is up to you. Sounds easier.
  •  The 50/30/20 budgeting rule. This budget allocates 50% of your income to your needs, accommodation, bills, food, etc., and 30% to your wants, including new t-shirts, shoes, a week on the beach, or whatever you feel like. The remaining 20% proceeds into your savings account or paying off your debt.
  •  The 50/15/5 budgeting rule. This budgeting method allocates 50% of the income to your living expenses and essential needs, 15% to savings, and 5% to an emergency fund. Butt that doesn’t add up to 100%. The 30% left will be allocated to your wants; you can spend it on whatever you like.

Wrap Up

That concludes our short explanation of the 60 30 10 rule. The 60 30 10 rule might sound unrealistic, too strict, or simply a burden. But for people looking at their financials in the long term and those with financial discipline, the 60 30 10 rule budget is the perfect budgeting rule for a happier life.


What is the 60 30 10 rule budget?

The 60 30 10 rule budget is a budgeting strategy that suggests saving or investing 60% of your income, allocating 30% toward living expenses, and spending the last 10% on wants.

What is the 70 20 10 Rule Money?

The 70 20 10 rule suggests putting 70% of your income towards living expenses, saving or investing 20%, and 10% on wants.

What is the 80 10 10 Rule Finance?

The 80 10 10 rule suggests living off 80% of your income, saving 10%, and investing 10%.

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