Allocate take-home pay: 70% living expenses, 20% savings & debt, 10% giving or extra debt payoff.
The 70/20/10 rule is a simple budgeting framework that divides after-tax income into three categories. It's simpler than the 50/30/20 rule and especially popular among those who prioritize charitable giving or tithing.
The 50/30/20 rule separates needs from wants, while 70/20/10 combines all spending into one bucket (70%) and adds an explicit giving category. Choose the framework that best matches your financial goals and values.