By following the 75/15/10 rule,you can create a well-rounded financial plan that covers your needs,prepares you for the future ,and lets you enjoy the present.Implementing
this strategy can help you manage your money more effective ,reduce financial stress ,and ultimately live like the top 1%.So take control of your finance today and start applying
the 75/15/10 rule to acheive financial freedom and peace of mind.
75%:For Needs
The 75% allocated to needs .This portion of your income should cover essential expenses such as rent or housing,food,trasportation,insurance,groceries,hea
lthcare,utilities or medical.By keeping track of these necessary costs,you can ensure that your basic needs are met without overspending.Budgeting for these
essentials helps you maintain a stable financial foundation ,which is crucial for long -term financial health.For example
if you earn 1 lakh
you can allocated 75,000/-(Needs)
or
you can allocated 15,000/-(Wants)
and 10,000/- (Invest or saving)
15%:For Stress-Free Spending
The 15% allocated to stress -free spending allow you to enjoy life without feeling guilty about your expenses.This Part of your budget can be used for activities that bring you
joy and relaxation ,such as entertainment,restaurant, shopping,gym,hobbies,vacation,clothing,housing/rent,food ,inurance,groceries, healthcare,utilities or medical.By setting
aside money specifically for leisure,you can including in your interest without compromising your financial stability.This balance between saving and spending is key to maintaining
a healthy and happy lifestyle.For example
if you earn 1 lakh
you can allocated 75,000/-(Needs)
or
you can allocated 15,000/-(Wants)
and 10,000/- (Invest or saving)
10%:For Saving And Investment
The 10 % of allocated saving and investing of your income.within this category ,its wise to set aside 3-5% as an emergency fund .This fund facts as a financial safety
net ,protecting you from unexpected expenses like medical emergencies or urgent home repair.The remaining portion of this 10% should be invest in reliable option
such as index funds,which offer a balanced and diversified approach to growing your wealth over time.smart investing can help you build a secure financial future
and achive your long term goals.For example
if you earn 1 lakh
you can allocated 75,000/-(Needs)
or
you can allocated 15,000/-(Wants)
and 10,000/- (Invest or saving)
FAQs About 75/15/10 Budgeting Rule
What is the 75-15-10 rule?
Let’s say your household earns $6,000 in take-home pay each month. With the 75/15/10 rule, that would mean $4,500 per month goes to your everyday needs, $900 goes to investments for long-term goals and $600 goes to liquid savings for short-term goals.
What is the 70/ 20/ 10 principle of budgeting?
The biggest chunk, 70%, goes towards living expenses while 20% goes towards repaying any debt, or to savings if all your debt is covered. The remaining 10% is your ‘fun bucket’, money set aside for the things you want after your essentials, debt and savings goals are taken care of.
What is 10/ 10/ 80 budgeting?
The 80/10/10 budget is just one way this can be done! In this approach, like other popular budgets, 80% of income goes towards spendings, such as bills, groceries, or anything else needed. 10% of income goes directly into savings to ensure that money is added regularly. The last 10% of income goes to charity.
Conclusion
The 75/15/10 budgeting rule is a structured way to manage income by dividing it into three categories: spending, saving, and investing