5 Ways to Use the 70/20/10 Budget Hack to Always Have Money

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1. Divide Your Income the 70/20/10 Way

This rule is your cheat code to stop money stress before it even starts.

It’s simple: 70% for needs, 20% for goals, and 10% for savings. Nothing complicated, no financial jargon, just clean numbers and peace of mind.

Here’s how it looks when you break it down:

• 70% for needs: rent, groceries, transportation, and bills. Your life’s must-haves.
  
• 20% for goals: things that move you forward. Investing, paying off debt, saving for a trip.
  
• 10% for savings: your safety cushion that quietly grows while you live your life.
  

👉 Here's How You'll Do It: Split your paycheck automatically each time it hits your account: one for bills, one for savings, and one for fun money.

Make It Easy: Consider a budgeting notebook or money binder to label and organize your spending categories easily.

2. 70% Is The Maximum You Can Spend

Here’s the hard truth. If you’re living off more than 70%, you’re not saving, you’re surviving.

Keeping essentials below that line helps you control lifestyle creep (and yes, that $6 latte counts 😅).

Try these to make that 70% stretch further:

• Cook at home more often. Eating out adds up faster than you think.
  
• Review subscriptions and cancel what you don’t use (we all have that forgotten app).
  
• Negotiate bills like phone, internet, or insurance. Small savings add up big.
  

👉 Here's How You'll Do It: Check your last three bank statements and circle every recurring charge. Trim anything that doesn’t serve your goals.

Make It Easy: Use a bill organizer folder to keep all statements and receipts visible. Out of sight means out of control.

3. Make the Most of Your 20% Towards Your Goals

This 20% is where your dreams start turning into actual results.

It’s your power zone. The part of your paycheck that builds momentum toward the life you actually want.

Here’s what smart use of that 20% looks like:

• Pay off debt using the debt snowball method. Start small, stay consistent, and watch progress snowball.
  
• Save for milestones like travel, a car upgrade, or your first home. Give every dollar a mission.
  
• Invest in yourself through courses, certifications, or side hustles that can grow your income long-term.
  

👉 Here's How You'll Do It: Divide your 20% between savings, debt, and self-growth. Even 10/5/5 works if it keeps you consistent.

Make It Easy: Keep a goal tracker planner on your desk to stay motivated and see your progress visually.

4. Treat the Last 10% as the Minimum You Should Save

Think of this 10% as your future paycheck.

It’s not money you might save. It’s money you must save, every single month, no excuses.

Here’s how to treat that 10% right:

• Name your savings goals. Emergency fund, new car, vacation, or future home.
  
• Automate everything so you never have to rely on willpower.
  
• Celebrate small wins. Every $10 saved is a tiny piece of your freedom.
  

👉 Here's How You'll Do It: Set up automatic transfers to a separate savings account right after payday. Not after bills.

Make It Easy: Open a Betterment Cash Reserve Account to grow your 10% savings automatically while earning higher interest.

5. Stay Flexible When Money Gets Tight

Some months will test your patience. Car repairs, birthdays, random “life happens” moments.

That’s why this budget works best when you allow it to bend instead of break.

Keep things realistic with small adjustments:

• Shift temporarily. If your bills rise, lower fun spending for a bit.
  
• Reassess quarterly. Incomes, goals, and priorities always evolve.
  
• Forgive slip-ups. One bad month doesn’t ruin your financial rhythm.
  

👉 Here's How You'll Do It: Review your budget every 90 days, adjust the numbers, and get back on track without guilt.

Make It Easy: Use a dry-erase budget board to visualize changes. It’s easier to tweak what you can see.

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