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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 we mentioned in the title, this is a budgeting form made for people who can overcome their impulsive spending habits and decisions and put aside 60% of their income for a better tomorrow.

What Is The 60 30 10 Budgeting Rule?

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

Is The 60 30 10 Rule Budget Right For You?

Now, we can’t stress enough, this budgeting rule is made for people with strong wills, they are dedicated and disciplined to save or invest 60% of their monthly income, with a single goal in mind, and that is making tomorrow easier and better for themselves.

To keep up with the 60 30 10 rule, you are going to have to quit some wants and guilty pleasures, and you are going to have to say NO more frequently than you are used to. You are going to 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. You will be solely focused on improving your personal finance.

This all makes it sound so terrible, but in fact, the 60 30 10 rule will make your life so much easier in the future, having more money saved up, or invested properly will help you do the dream job you always wanted, buy the house you fell in love with, be prepared for a dark day, or simply put your kids through collage.

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, and the 60 30 10 rule budget isn’t any different from others in that point of view. Here are the advantages and disadvantages of the 60 30 10 budgeting 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 get from this budgeting method will follow you for the rest of your life. You will truly learn the value of money, which is one of the best habits anyone can have.


  • Saying I can’t become a habit, in order 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”, which includes getting a piece of wardrobe monthly or traveling that often.

Other Types Of Budgeting

We just wanted to mention, the 60 30 10 rule budgeting isn’t the only one out there, there are plenty of other budgeting options that might do wonders for you. Here are a couple of other budgeting rules for you to consider:

  • The 70/30 Rule for budgeting. This rule is a simple one, saying 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 budgeting is allocating 50% of your income to your needs, accommodation, bills, food, etc. 30% goes to your wants, new t-shirt, shoes, a week on the beach, whatever you feel like, and the remaining 20% goes into your savings account or paying off your debt.
  • The 50/15/5 budgeting rule. This budgeting method is allocating 50% of the income to your living expenses and essential needs, 15% goes to savings and 5% goes to an emergency fund. You already noticed that this doesn’t add up to 100%, so the 30% left will be allocated to your wants, you can spend it on whatever you like.

Wrap Up

This concludes our short explanation on the 60 30 10 rule budget, this might be unrealistic, too strict or simply a punishment, but for the people who are looking at things long term, for people with financial discipline this is the perfect budgeting rule for a happier life.

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