I’ve heard about the 70-20-10 budgeting method but am unsure how to implement it. Can anyone explain how the 70-20-10 calculator works and provide guidance on using this budgeting approach to manage finances effectively?
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One budgeting strategy that can assist you in dividing your funds into three categories is the 70-20-10 method. Seventy percent of it goes toward your daily expenses and bills. The remaining 20% is either saved or applied toward debt repayment. And lastly, you get to spend ten percent on things you enjoy. You can perform the calculations using a pencil and paper instead of a costly calculator. This approach is beneficial since it’s simple to comprehend and helps you stick to your budget. Recall that it’s adaptable, so make any necessary adjustments to the percentages and monitor your spending to make sure you’re headed in the right direction.
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It simply means you spend 70% of your income on expenses, 20% on Savings and Investments and the remaining 10 on debt Repayment and Donations.