10 tips for managing your household budget (2024)

FAQs

What is the 10 10 10 budget rule? ›

If you participated in our 5th or 8th-grade program called I Am Financial Knowledge, you may remember the 10/10/10/70 principle. This principle says for each dollar you earn or are given, you should save 10%, share 10%, invest 10% and spend 70%.

Prioritize spending on your basic needs, such as housing, food, and healthcare. Evaluate which expenses, such as eating out or subscriptions, you can reduce. Learn how to prioritize your expenses. Plan for the unexpected: An essential part of any budget involves considering unexpected expenses.

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

The 10–10–10 rule is a transformative approach that involves examining the potential impact of our decisions over distinct time horizons. When faced with choices, individuals are encouraged to consider the effects of their decisions over the next 10 minutes, 10 months, and 10 years.

Key Takeaways. The 50-30-20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should dedicate 20% to savings, leaving 30% to be spent on things you want but don't necessarily need.

What is the 50 30 20 budget rule? ›

Key Takeaways. The 50-30-20 budget rule states that you should spend up to 50% of your after-tax income on needs and obligations that you must have or must do. The remaining half should dedicate 20% to savings, leaving 30% to be spent on things you want but don't necessarily need.

Try to follow the 50-20-30 rule, which splits your after-tax, take-home pay into three subsets. Here's a breakdown to consider: 50 percent for needs including rent/mortgage, food, bills, minimum debt payments and other essentials. 20 percent for financial goals such as savings and investments.