What Is The 10-10-80 Rule For Saving Money?

By Ishika S.

8 March, 2024

The 10-10-80 rule for saving money is a simple guideline that suggests allocating your income into three categories.


“Here’s the 10-10-80 rule for saving money explained”

This portion of your income is set aside for savings. It’s recommended to prioritize building an emergency fund and long-term savings goals like retirement or major purchases.

1. 10% for Savings:

2. 10% for Investments:

Another 10% of your income should be allocated towards investments. This could include contributing to a retirement account, investing in stocks or bonds, or other forms of investment vehicles that can help grow your wealth over time.

The remaining 80% of your income is budgeted for expenses such as housing, utilities, transportation, groceries, entertainment, and other daily necessities.

3. 80% for Expenses:

Following this rule helps individuals establish a healthy balance between saving for the future and covering current expenses. It encourages consistent saving and investing habits, ultimately leading to financial stability and growth over time. However, it’s important to adjust this rule based on individual financial goals, lifestyle, and income level.