If you’ve ever felt your money disappears faster than it should, the 70/15/15 rule can be a game‑changer. It’s a plain way to split what you earn so you always have cash for bills, savings and fun. No confusing spreadsheets, just three numbers that fit most lives.
Take your total take‑home pay – that’s the amount after tax and any payroll deductions. Then allocate:
By keeping the percentages steady, you always know how much is safe to spend and how much you’re building for the future.
1. Calculate your net income. Grab your latest payslip and write down the amount you actually receive.
2. Set up three accounts. Most banks let you create sub‑accounts or savings pots. Label them “Essentials”, “Savings” and “Fun”.
3. Transfer the money automatically. Schedule a standing order on payday: 70% to Essentials, 15% to Savings, 15% to Fun. Automation removes the guesswork.
4. Track your expenses. Use a free budgeting app or a simple spreadsheet. Check at the end of each week that you stayed inside the 70% cap for bills.
5. Adjust as life changes. Got a raise? Increase the savings slice or treat yourself a bit more. Lost a job? Pull back the fun portion first, keep the essentials covered.
6. Stay flexible. Some months you might have a higher utility bill or a one‑off medical cost. Move a little from the fun pot to cover it, then refill that pot later.
7. Review quarterly. Look at where your money went. If you’re consistently under‑spending on essentials, you might be able to shift a bit more to savings.
Applying the rule is easier when you have a clear picture of your bills. Write down the exact amount you spend on rent, transport and groceries for a month. That number will tell you if the 70% cap is realistic or needs tweaking.
Remember, the goal isn’t strict rigidity – it’s a safety net. If you’re new to budgeting, start with a rough 70/20/10 split and move toward 70/15/15 as you get comfortable.
Finally, celebrate small wins. When you hit a savings milestone or stick to the rule for three months straight, give yourself a low‑cost reward. It reinforces the habit and keeps you motivated.
The 70/15/15 budget is a straightforward tool to stop living paycheck‑to‑paycheck. With a little setup and regular check‑ins, you’ll see more control over your money, a growing safety net, and still have room for the things you enjoy.
Discover the 70 15 15 budget, an effective way to manage your finances by allocating 70% of your income to needs, 15% to savings, and 15% to wants. This approach helps prioritize essential expenses while still allowing room for enjoyment and future planning. Learn how to implement this strategy, its benefits, and tips for making it work for your lifestyle.