Understanding the 70/10/10/10 Savings Rule: Can It Simplify Your Budgeting?

H1: What is the 70 10 10 10 Savings Rule? A Simple Way to Budget

Well, let’s talk about something that’s been on my mind lately – the 70 10 10 10 savings rule. Honestly, I had never heard of it until a few months ago when I was having a conversation with a close friend, Emily, about how to manage personal finances. She mentioned this rule, and I was honestly intrigued. The idea of dividing my income into simple percentages seemed like a manageable approach to saving and budgeting.

So, what exactly is the 70 10 10 10 savings rule? And, more importantly, can it actually work for you? Let’s dive into it together!

1. Breaking Down the Rule: The 70-10-10-10 Formula

Here’s the basic structure of the 70 10 10 10 savings rule:

• 70% – Living Expenses
• 10% – Savings
• 10% – Retirement
• 10% – Debt Repayment or Investment

Pretty simple, right? This rule helps you balance your income effectively by dividing it into four main categories: what you spend, what you save, what you invest for the future, and what you use to reduce debt or grow your wealth.

Now, when I first heard this, I thought, "How can I manage all of this?" I mean, I’ve always had a hard time sticking to budgets, let’s be honest. But after testing it out for a few months, I found that breaking my income into these categories helped me prioritize my financial health in a way that felt doable.

2. Why 70% for Living Expenses?

Let’s start with the 70% allocated to living expenses. This is where most of your income goes—think rent, groceries, utilities, transportation, etc. When I first started budgeting this way, I realized that I was spending a lot more than I thought on unnecessary items.

Honestly, one of my biggest challenges was realizing how much I was spending on things like take-out food, subscriptions, and impulse buys. I had to really assess what I needed and what I didn’t. So, this 70% is your chance to reign in your spending habits and get really honest with yourself about what you truly need.

3. The Importance of 10% for Savings

The 10% for savings might not sound like a lot at first, but hear me out. By setting aside this amount consistently, you can start building an emergency fund, saving for a vacation, or even making investments that will pay off in the future.

I’ll be real with you: at first, I wasn’t sure if I could afford to save even 10%. But when I started tracking my spending and cutting back on those small, unnecessary expenses, I realized that it’s more doable than I thought. And the best part? Seeing that savings grow each month gave me such peace of mind.

4. Why You Should Focus 10% on Retirement

Next, there's the 10% for retirement. Honestly, I didn’t think much about my future retirement until recently, when a financial advisor mentioned how important it is to start saving early, even if it’s just a small amount. I know, it sounds like a long way off, but trust me, it’s better to start now than to wait until it’s too late.

I’ve been putting my 10% towards a retirement fund, and even though it feels like a drop in the ocean now, I know that consistent contributions will build up over time. This has really shifted my mindset about money: I’m not just saving for today, but I’m planning for the future.

5. The Final 10% for Debt Repayment or Investment

The last 10% is where it gets interesting. You have two options here: you can either use it to pay down debt (if you have any), or invest it to grow your wealth. This is where you can get strategic.

For me, I decided to put my 10% towards paying off some of the debt I had accumulated. It's been a game-changer. Every time I pay off a little chunk of debt, I feel more in control of my finances. But hey, if you're in a good place with debt, you could also use that 10% for investing, whether it's stocks, bonds, or other opportunities that suit your risk tolerance.

6. Can the 70 10 10 10 Rule Really Work for You?

Honestly, yes, it can. But here’s the catch: you need to be disciplined, and you need to track your spending. You also need to be okay with adjusting the percentages if necessary. Let’s be real, life happens, and sometimes you might need to tweak things along the way.

But for me, the 70 10 10 10 rule has been an eye-opener. It’s allowed me to prioritize what really matters and feel more in control of my financial future. And you know what? It’s been surprisingly simple to stick to once I got into the habit.

7. Final Thoughts: Start Small, Think Big

If you're reading this and feeling a bit overwhelmed by your finances, don't stress. Start small with the 70 10 10 10 rule and see how it works for you. Even if you can’t start with 10% in each category, any progress is still progress. Start by saving just a little bit, and as you cut back on unnecessary expenses, you’ll find you can put more toward your goals.

So, have you tried the 70 10 10 10 rule, or is it something you’re thinking of implementing? I’d love to hear your thoughts and whether you think this simple budgeting strategy could work for you!

Is 165 cm normal for a 15 year old?

The predicted height for a female, based on your parents heights, is 155 to 165cm. Most 15 year old girls are nearly done growing. I was too. It's a very normal height for a girl.

Is 160 cm too tall for a 12 year old?

How Tall Should a 12 Year Old Be? We can only speak to national average heights here in North America, whereby, a 12 year old girl would be between 137 cm to 162 cm tall (4-1/2 to 5-1/3 feet). A 12 year old boy should be between 137 cm to 160 cm tall (4-1/2 to 5-1/4 feet).

How tall is a average 15 year old?

Average Height to Weight for Teenage Boys - 13 to 20 Years

How to get taller at 18?

Staying physically active is even more essential from childhood to grow and improve overall health. But taking it up even in adulthood can help you add a few inches to your height. Strength-building exercises, yoga, jumping rope, and biking all can help to increase your flexibility and grow a few inches taller.

Is 5.7 a good height for a 15 year old boy?

Generally speaking, the average height for 15 year olds girls is 62.9 inches (or 159.7 cm). On the other hand, teen boys at the age of 15 have a much higher average height, which is 67.0 inches (or 170.1 cm).

Can you grow between 16 and 18?

Most girls stop growing taller by age 14 or 15. However, after their early teenage growth spurt, boys continue gaining height at a gradual pace until around 18. Note that some kids will stop growing earlier and others may keep growing a year or two more.

Can you grow 1 cm after 17?

Even with a healthy diet, most people's height won't increase after age 18 to 20. The graph below shows the rate of growth from birth to age 20. As you can see, the growth lines fall to zero between ages 18 and 20 ( 7 , 8 ). The reason why your height stops increasing is your bones, specifically your growth plates.