Are you thinking of trying a new budget, but are wondering “What is the 30-30-30-10 budget rule?”
You may have heard of the popular 50-30-20 budget, and perhaps you even tried it. If it wasn’t for you, luckily there are many other budget options to help you keep track of your money. And the 30-30-30-10 budget may be a great alternative budget to help you stay on track. Moreover, this budget may just be what you are looking for to help stop overspending, yet feel less confined.
What is the point of a budget?
A budget helps you keep track of how much money you have coming in and how much you have going out, to prevent overspending and help one save money and pay down or stay out of debt.
In short, if a business did not keep a budget, it would quickly go under. Nonetheless, this can easily happen to family finances too.
If you do not know where your money is going, you can quickly rack up debt. Not to mention, if you cannot pay the bills, you will have unnecessary stress from living paycheck to paycheck.
Therefore, using a budget will help you stay out of debt and create a calm, less stressful household.
What is the 30-30-30-10 budget rule?
The 30-30-30-10 budget is a budget that allocates 30% of your monthly income to rent/mortgage/house expenses, 30% for necessities, 30% for financial goals, and 10% for fun money. Instead of using a simple input/output system, the 30-30-30-10 budget helps you become intentional with your money because you are telling your money where to go down to the penny, by using specific funds to help pay bills and save.
Although, this may not be the budget for everyone if you have not had success with other budgets, why not give this one a try for a few months and see if it works for your needs.
Here is the breakdown of the 30-30-30-10 budget using the following percentages based on your monthly income:
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