{"id":12921,"date":"2024-02-26T11:48:12","date_gmt":"2024-02-26T16:48:12","guid":{"rendered":"https:\/\/myratecompass.ca\/blog\/?p=12921"},"modified":"2025-02-04T23:15:42","modified_gmt":"2025-02-05T04:15:42","slug":"what-is-the-70-20-10-budget","status":"publish","type":"post","link":"https:\/\/myratecompass.ca\/blog\/budgeting\/what-is-the-70-20-10-budget\/","title":{"rendered":"What is the 70\/20\/10 budget?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_17 counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/myratecompass.ca\/blog\/budgeting\/what-is-the-70-20-10-budget\/#How_Does_The_702010_Budget_Work\" title=\"How Does The 70\/20\/10 Budget Work? \">How Does The 70\/20\/10 Budget Work? <\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/myratecompass.ca\/blog\/budgeting\/what-is-the-70-20-10-budget\/#70_For_living_Expenses\" title=\"70% For living Expenses\">70% For living Expenses<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/myratecompass.ca\/blog\/budgeting\/what-is-the-70-20-10-budget\/#20_for_Savings\" title=\"20% for Savings\">20% for Savings<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/myratecompass.ca\/blog\/budgeting\/what-is-the-70-20-10-budget\/#10_for_debt_repayment_or_donations\" title=\"10% for debt repayment or donations\">10% for debt repayment or donations<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/myratecompass.ca\/blog\/budgeting\/what-is-the-70-20-10-budget\/#The_Pros_And_Cons_Of_The_702010_Budgeting_Method\" title=\"The Pros And Cons Of The 70\/20\/10 Budgeting Method\">The Pros And Cons Of The 70\/20\/10 Budgeting Method<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/myratecompass.ca\/blog\/budgeting\/what-is-the-70-20-10-budget\/#The_Pros_Of_The_702010_Budget\" title=\"The Pros Of The 70\/20\/10 Budget\">The Pros Of The 70\/20\/10 Budget<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/myratecompass.ca\/blog\/budgeting\/what-is-the-70-20-10-budget\/#The_Cons_of_the_702010_budget\" title=\"The Cons of the 70\/20\/10 budget\">The Cons of the 70\/20\/10 budget<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/myratecompass.ca\/blog\/budgeting\/what-is-the-70-20-10-budget\/#How_To_Stick_To_The_702010_Budget\" title=\"How To Stick To The 70\/20\/10 Budget\">How To Stick To The 70\/20\/10 Budget<\/a><ul class=\"ez-toc-list-level-3\"><li class=\"ez-toc-heading-level-3\"><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/myratecompass.ca\/blog\/budgeting\/what-is-the-70-20-10-budget\/#Budgeting_Tools_To_Help_You_Stick_To_The_702010_Format\" title=\"Budgeting Tools To Help You Stick To The 70\/20\/10 Format\">Budgeting Tools To Help You Stick To The 70\/20\/10 Format<\/a><\/li><\/ul><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/myratecompass.ca\/blog\/budgeting\/what-is-the-70-20-10-budget\/#Which_Companies_Use_The_702010_Budget\" title=\"Which Companies Use The 70\/20\/10 Budget? \">Which Companies Use The 70\/20\/10 Budget? <\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/myratecompass.ca\/blog\/budgeting\/what-is-the-70-20-10-budget\/#Final_Thoughts\" title=\"Final Thoughts\">Final Thoughts<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time:<\/span> <span class=\"rt-time\">5<\/span> <span class=\"rt-label rt-postfix\">Min<\/span><\/span>\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"12921\" class=\"elementor elementor-12921\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-85dde3a elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"85dde3a\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a6a6c47\" data-id=\"a6a6c47\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-efd78ec elementor-widget elementor-widget-text-editor\" data-id=\"efd78ec\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.17.0 - 08-11-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>The 70\/20\/10 budget is a budgeting strategy that\u2019s gained popularity in recent years. It allocates your after-tax income into three main categories: <b>70% for living expenses, 20% for savings, and 10% for debt repayment or donations<\/b>.\u00a0<\/p><p>In this article, we explore <b>the benefits of the 70\/20\/10 budget and outline strategies to implement it effectively<\/b>. Whether you&#8217;re new to budgeting or looking for a fresh approach, the 70\/20\/10 budget could be the solution you&#8217;ve been searching for.<\/p><p>If you\u2019re ready to learn how to implement this popular budget outline to meet your saving and spending goals, read on!<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-16e81d0 elementor-widget elementor-widget-heading\" data-id=\"16e81d0\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.17.0 - 08-11-2023 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"How_Does_The_702010_Budget_Work\"><\/span><b>How Does The 70\/20\/10 Budget Work? <\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-444c056 elementor-widget elementor-widget-text-editor\" data-id=\"444c056\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>As mentioned earlier, the 70\/20\/10 budget suggests that you allocate <b>70%<\/b> of your income to living expenses, this includes needs and wants. The <b>20%<\/b> should go towards savings or investments, and the <b>10%<\/b> should go towards debt repayments or donations. While there is some disagreement over the use of the last 10%, it is generally considered your \u201cgiving\u201d category, or else an additional 10% to use however you please.\u00a0<\/p><p>Below is an overview of things typically included in each category:<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-b61ef65 elementor-widget elementor-widget-heading\" data-id=\"b61ef65\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"70_For_living_Expenses\"><\/span><b>70% For living Expenses<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f7f7189 elementor-widget elementor-widget-text-editor\" data-id=\"f7f7189\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Living expense in this case refers to the following:<\/p><ul><li>Utilities<\/li><li>Rent<\/li><li>Transportation<\/li><li>Healthcare<\/li><li><a href=\"https:\/\/myratecompass.ca\/blog\/mortgages\/mortgage-payment-frequency\/\">Mortgage payments<\/a><\/li><li>Groceries<\/li><li>Discretionary spending, or \u201cWants\u201d.\u00a0<\/li><li>\u00a0<\/li><\/ul><p>These are the costs that you incur to maintain your current lifestyle.\u00a0<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-4e750eb elementor-widget elementor-widget-heading\" data-id=\"4e750eb\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"20_for_Savings\"><\/span><b>20% for Savings<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c223d28 elementor-widget elementor-widget-text-editor\" data-id=\"c223d28\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The 20% allocated for savings is meant to provide a financial cushion for the future. This category can include the following:<\/p><ul><li><a href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/best-high-interest-savings-accounts-in-canada\">High-interest savings account<\/a> funds.\u00a0<\/li><li>Retirement savings, such as <a href=\"https:\/\/myratecompass.ca\/savings-accounts\/senior\">Senior Savings<\/a> account, <a href=\"https:\/\/myratecompass.ca\/savings-accounts\/tfsa\">Tax-Free Savings<\/a>, or <a href=\"https:\/\/myratecompass.ca\/savings-accounts\/rrsp\">Registered Retirement Savings plans<\/a>.\u00a0<\/li><li><a href=\"https:\/\/myratecompass.ca\/blog\/investing\">Investments<\/a>, such as stock or bonds.\u00a0<\/li><li>\u00a0<\/li><\/ul><p>This portion of your income can be directed towards building an <a href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/the-importance-of-an-emergency-fund\/\">emergency fund<\/a>, saving for retirement, or achieving other long-term financial goals.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ba1824d elementor-widget elementor-widget-heading\" data-id=\"ba1824d\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"10_for_debt_repayment_or_donations\"><\/span><b>10% for debt repayment or donations<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c4598ef elementor-widget elementor-widget-text-editor\" data-id=\"c4598ef\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The remaining 10% is allocated for debt repayment or donations. Here are some things you might include in this portion of the budget:<\/p><ul><li><a href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/student-loans-canada-guide\/\">Student loan<\/a> debt repayments.\u00a0<\/li><li><a href=\"https:\/\/myratecompass.ca\/blog\/creditcards\/credit-card-debt\/\">Credit card debts<\/a>.<\/li><li>Donations to charities or churches.\u00a0<\/li><li>Anything you want.<\/li><li>\u00a0<\/li><\/ul><p>If you&#8217;re debt free and have nothing to donate to, you can use this last 10% as extra savings money, or to treat yourself now and then. It&#8217;s entirely up to you<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-83a22e6 elementor-widget elementor-widget-heading\" data-id=\"83a22e6\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"The_Pros_And_Cons_Of_The_702010_Budgeting_Method\"><\/span><b>The Pros And Cons Of The 70\/20\/10 Budgeting Method<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0decbac elementor-widget elementor-widget-text-editor\" data-id=\"0decbac\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The 70\/20\/10 method comes with several pros and cons. These are summarized below,.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-dde1084 elementor-widget elementor-widget-heading\" data-id=\"dde1084\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"The_Pros_Of_The_702010_Budget\"><\/span><b>The Pros Of The 70\/20\/10 Budget<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f59049a elementor-widget elementor-widget-text-editor\" data-id=\"f59049a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul>\n<li><b>Simplicity: <\/b>With only three categories, the 70\/20\/10 budget is easy to manage and understand.&nbsp;<\/li>\n<li>&nbsp;<\/li>\n<li><b>Peace of mind<\/b>: By allocating a significant portion of your income towards living expenses, you can ensure that your essential needs are met. This helps create a sense of stability and reduces financial stress.<\/li>\n<li>&nbsp;<\/li>\n<li><b>Saving and investment focus: <\/b>The 20% allocated for savings allows you to build a financial safety net and work towards achieving your long-term financial goals. If you include investments in this part of the budget, you can rest easy knowing you\u2019re not neglecting your long-term savings.&nbsp;<\/li>\n<li>&nbsp;<\/li>\n<li><b>Flexibility<\/b>: While the 70\/20\/10 budget provides a general guideline, it can be adapted to suit your individual circumstances.&nbsp;<\/li>\n<li>&nbsp;<\/li>\n<li><b>Financial discipline<\/b>: Following a budget requires discipline and accountability. The 70\/20\/10 budgeting method encourages mindful spending and helps you develop healthy financial habits.<\/li>\n<li>&nbsp;<\/li>\n<\/ul>\n<p>By utilizing the 70\/20\/10 budgeting method, you can take control of your finances, achieve financial stability, and work towards your long-term financial goals.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-8388e69 elementor-widget elementor-widget-heading\" data-id=\"8388e69\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"The_Cons_of_the_702010_budget\"><\/span><b>The Cons of the 70\/20\/10 budget<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-997e059 elementor-widget elementor-widget-text-editor\" data-id=\"997e059\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>This budget format doesn\u2019t work for everyone. You may enounter specific issues with it, including the following:\u00a0<\/p><ul><li><b>No separation between needs and wants: <\/b>The 70\/20\/10 budget doesn\u2019t allocate different categories for your needs and wants. While it can simplify your budgeting process, mixing up the needs and wants can lead to you overspending or missing out on saving opportunities.\u00a0<\/li><li>\u00a0<\/li><li><b>Insufficient debt repayment: <\/b>Leaving only 10% of your budget to repay debts might lead to more financial instability. For example, if your credit card bill is more than 10% of your monthly income you might carry a balance and end up paying interest and lowering your credit score because you didn\u2019t dedicate enought funds to paying off your debt each month.\u00a0<\/li><\/ul><ul><li>\u00a0<\/li><li><b>Lack of detail<\/b>: These three categories might lack nuance and make it harder for you to understand where your money is really going each month. The simplicity of the 70\/20\/10 budget is also its downfall in this regard.\u00a0<\/li><\/ul><ul><li>\u00a0<\/li><\/ul><p>Overall, this budget is straightforward, but can be hard to impliment and use effectively. If this method doesn\u2019t work for you, there is no shame in seeking out a different budget format that works for you and your goals.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ab2c0f0 elementor-widget elementor-widget-heading\" data-id=\"ab2c0f0\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"How_To_Stick_To_The_702010_Budget\"><\/span><b>How To Stick To The 70\/20\/10 Budget<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-77d9a11 elementor-widget elementor-widget-text-editor\" data-id=\"77d9a11\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>To make the most of the 70\/20\/10 budgeting method, consider the following tips:<\/p><ul><li><b>Automate your <\/b>savings: Set up automatic monthly transfers to your <a href=\"https:\/\/myratecompass.ca\/blog\/savings\/best-tfsa-savings-accounts-in-canada\/\">savings account<\/a>, this will eliminate the temptation to spend your extra saving funds each month.\u00a0<\/li><li>\u00a0<\/li><li><b>Prioritize your high-interest debts<\/b>: If you&#8217;re paying off your debts and feel like 10% each month is insufficient for all of them, focus on the ones with the highest interest rates. If you want alternatives to this method consider some of our <a href=\"https:\/\/myratecompass.ca\/blog\/creditcards\/how-to-pay-your-credit-cards-with-different-canadian-banks\/\" target=\"_blank\" rel=\"noopener\">other strategies to pay off your debts.\u00a0<\/a><\/li><li>\u00a0<\/li><li><b>Review your budget regularly<\/b>: Regularly assess your budget to ensure that it aligns with your current financial situation and goals. Make adjustments as necessary to accommodate changes in income or expenses.<\/li><li>\u00a0<\/li><li><b>Seek professional advice<\/b>: If you&#8217;re unsure how to allocate your income or have complex financial circumstances, consider consulting a financial advisor. They can provide personalized guidance to help you optimize your budget.<\/li><li>\u00a0<\/li><\/ul><p>If you follow these tips you&#8217;ll be making strides towards your saving goals in no time. But remember to remain realistic and to adjust your budget to suit your goals if it isn&#8217;t working for you.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5bc2c02 elementor-widget elementor-widget-heading\" data-id=\"5bc2c02\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"Budgeting_Tools_To_Help_You_Stick_To_The_702010_Format\"><\/span><b>Budgeting Tools To Help You Stick To The 70\/20\/10 Format<\/b><span class=\"ez-toc-section-end\"><\/span><\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7ee2037 elementor-widget elementor-widget-text-editor\" data-id=\"7ee2037\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>If you\u2019re not sure where to begin with your budgeting journey, there are several free and accessible tools available to make this process easier. For example:\u00a0<\/p><ul><li><b>Budgeting apps<\/b>: There are numerous mobile apps available that can help you track your spending, set budgeting goals, and automate savings. Examples include Mint, YNAB (You Need a Budget), and PocketGuard.<\/li><li>\u00a0<\/li><li><b>Spreadsheet templates<\/b>: If you prefer a more hands-on approach, you can use spreadsheet templates to create and manage your 70\/20\/10 budget. Microsoft Excel and Google Sheets offer pre-designed templates that you can customize to suit your needs.<\/li><li>\u00a0<\/li><li><b>Online finance guides: <\/b>There are multiple free resources available to guide you through your budget setup process, including youtube videos, blogs, and websites. Do some digging and see if any of these resources can help you overcome the initial budget hurdle.\u00a0<\/li><li>\u00a0<\/li><\/ul><p>Remember, you don\u2019t have to do it on your own! You\u2019re allowed to ask for help and use any tools you want to make it easier to stick to your budget and allocate your funds.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7e1eb98 elementor-widget elementor-widget-heading\" data-id=\"7e1eb98\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"Which_Companies_Use_The_702010_Budget\"><\/span><b>Which Companies Use The 70\/20\/10 Budget? <\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-83fee3e elementor-widget elementor-widget-text-editor\" data-id=\"83fee3e\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The 70\/20\/10 budgeting method is not only applicable to individuals but can also be implemented by companies. Here are a few case studies of companies that have successfully utilized the 70\/20\/10 budget:<\/p><ul><li><b>Google<\/b>: Google famously implemented the 70\/20\/10 budgeting method for its <b>innovation <\/b>strategy. They allocated 70% of their resources towards core business operations, 20% towards emerging projects, and 10% towards speculative ventures (anything new or unrelated to core work). This approach allowed Google to maintain its core business while investing in future growth and innovation.<\/li><li>\u00a0<\/li><li><b>Procter &amp; Gamble<\/b>: Procter &amp; Gamble, a multinational consumer goods company, adopted the 70\/20\/10 budgeting method to streamline its <b>marketing <\/b>spending. They allocated 70% of their marketing budget towards established brands, 20% towards emerging brands, and 10% towards experimental initiatives. This strategy helped P&amp;G optimize its marketing efforts and allocate resources effectively.<\/li><li>\u00a0<\/li><li><b>General Electric<\/b>: General Electric (GE) used the 70\/20\/10 budgeting method to manage its research and development (R&amp;D) expenditures. They allocated 70% towards incremental innovation, 20% towards adjacent business opportunities, and 10% towards breakthrough initiatives. This approach allowed GE to balance short-term profitability with long-term growth and innovation.<\/li><li>\u00a0<\/li><\/ul><p>These case studies demonstrate how this budgeting strategy can be applied to more than just <a href=\"https:\/\/myratecompass.ca\/blog\/personal-finance\/best-personal-finance-books\/\">personal finances<\/a>. The 70\/20\/10 budget can be used to <b>set clear personal and organizational priorities<\/b>, while not neglecting often side-lined savings and debt repayment requirements and needs.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-47b478a elementor-widget elementor-widget-heading\" data-id=\"47b478a\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"><span class=\"ez-toc-section\" id=\"Final_Thoughts\"><\/span><b>Final Thoughts<\/b><span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f53a504 elementor-widget elementor-widget-text-editor\" data-id=\"f53a504\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>The 70\/20\/10 budget offers a simple and effective way to allocate your resources towards needs, savings, and debts. Its widespread use by large, successful organizations demonstrates its usefulness and shows that it can work for individual and business purposes.\u00a0<\/p><p>While it can be tough to allocate so little to your monthly debt repayments, or an entire 20% to your savings, this method works well if your goal is to make consistent strides towards your financial goals. So what are you waiting for? Happy budgeting!<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p><span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time:<\/span> <span class=\"rt-time\">5<\/span> <span class=\"rt-label rt-postfix\">Min<\/span><\/span> The 70\/20\/10 budget is a budgeting strategy that\u2019s gained popularity in recent years. It allocates your after-tax income into three main categories: 70% for living expenses, 20% for savings, and 10% for debt repayment or donations.\u00a0 In this article, we explore the benefits of the 70\/20\/10 budget and outline strategies to implement it effectively. Whether&hellip; <a class=\"more-link\" href=\"https:\/\/myratecompass.ca\/blog\/budgeting\/what-is-the-70-20-10-budget\/\">Continue reading <span class=\"screen-reader-text\">What is the 70\/20\/10 budget?<\/span><\/a><\/p>\n","protected":false},"author":5,"featured_media":12923,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[34],"tags":[21],"class_list":["post-12921","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-budgeting","tag-blog-post-template-1-main-template-to-use","entry"],"aioseo_notices":[],"featured_image_urls":{"full":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-scaled.jpg",924,647,false],"thumbnail":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-150x150.jpg",150,150,true],"medium":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-300x210.jpg",300,210,true],"medium_large":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-768x538.jpg",750,525,true],"large":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-1024x717.jpg",750,525,true],"1536x1536":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-1536x1076.jpg",924,647,true],"2048x2048":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-2048x1435.jpg",924,647,true],"post-thumbnail":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-1568x1098.jpg",924,647,true],"post-image-medium":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-357x250.jpg",357,250,true]},"post_excerpt_stackable":"<p>Table of Contents How Does The 70\/20\/10 Budget Work? 70% For living Expenses20% for Savings10% for debt repayment or donationsThe Pros And Cons Of The 70\/20\/10 Budgeting MethodThe Pros Of The 70\/20\/10 BudgetThe Cons of the 70\/20\/10 budgetHow To Stick To The 70\/20\/10 BudgetBudgeting Tools To Help You Stick To The 70\/20\/10 FormatWhich Companies Use The 70\/20\/10 Budget? Final Thoughts Reading Time: 5 Min The 70\/20\/10 budget is a budgeting strategy that\u2019s gained popularity in recent years. It allocates your after-tax income into three main categories: 70% for living expenses, 20% for savings, and 10% for debt repayment or donations.\u00a0In&hellip;<\/p>\n","category_list":"<a href=\"https:\/\/myratecompass.ca\/blog\/.\/budgeting\/\" rel=\"category tag\">Budgeting<\/a>","author_info":{"name":"Mohamed Konate","url":"https:\/\/myratecompass.ca\/blog\/author\/mohamedkonate\/"},"comments_num":"0 comments","featured_image_urls_v2":{"full":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-scaled.jpg",924,647,false],"thumbnail":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-150x150.jpg",150,150,true],"medium":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-300x210.jpg",300,210,true],"medium_large":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-768x538.jpg",750,525,true],"large":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-1024x717.jpg",750,525,true],"1536x1536":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-1536x1076.jpg",924,647,true],"2048x2048":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-2048x1435.jpg",924,647,true],"post-thumbnail":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-1568x1098.jpg",924,647,true],"post-image-medium":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-357x250.jpg",357,250,true]},"post_excerpt_stackable_v2":"<p>Table of Contents How Does The 70\/20\/10 Budget Work? 70% For living Expenses20% for Savings10% for debt repayment or donationsThe Pros And Cons Of The 70\/20\/10 Budgeting MethodThe Pros Of The 70\/20\/10 BudgetThe Cons of the 70\/20\/10 budgetHow To Stick To The 70\/20\/10 BudgetBudgeting Tools To Help You Stick To The 70\/20\/10 FormatWhich Companies Use The 70\/20\/10 Budget? Final Thoughts Reading Time: 5 Min The 70\/20\/10 budget is a budgeting strategy that\u2019s gained popularity in recent years. It allocates your after-tax income into three main categories: 70% for living expenses, 20% for savings, and 10% for debt repayment or donations.\u00a0In&hellip;<\/p>\n","category_list_v2":"<a href=\"https:\/\/myratecompass.ca\/blog\/.\/budgeting\/\" rel=\"category tag\">Budgeting<\/a>","author_info_v2":{"name":"Mohamed Konate","url":"https:\/\/myratecompass.ca\/blog\/author\/mohamedkonate\/"},"comments_num_v2":"0 comments","jetpack_featured_media_url":"https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2024\/02\/What-is-the-70-20-10-budget-scaled.jpg","_links":{"self":[{"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/posts\/12921","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/comments?post=12921"}],"version-history":[{"count":20,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/posts\/12921\/revisions"}],"predecessor-version":[{"id":14547,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/posts\/12921\/revisions\/14547"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/media\/12923"}],"wp:attachment":[{"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/media?parent=12921"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/categories?post=12921"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/tags?post=12921"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}