70 20 10 Rule: Simple Budgeting for Better Financial Control

When it comes to managing your money, you don’t need a fancy spreadsheet or an app that tracks every coffee. The 70 20 10 rule, a practical budgeting method that divides income into three clear categories: spending, saving, and giving or investing. Also known as the rule of thirds for personal finance, it’s a no-nonsense way to stay in control without constant stress. This isn’t some Wall Street secret—it’s what regular people in India use to build savings, avoid debt, and finally feel like they’re winning at money.

The 70 20 10 rule, a simple income allocation system where 70% goes to living expenses, 20% to savings or investments, and 10% to charitable giving or debt repayment works because it’s flexible. You don’t need to earn ₹1 lakh a month to use it. If you make ₹30,000, you spend ₹21,000, save ₹6,000, and put ₹3,000 aside for something bigger—like an emergency fund, a mutual fund, or even helping a family member. It’s not about perfection. It’s about consistency. And that’s why it shows up in posts about high-yield savings accounts, a tool that helps you grow your 20% savings faster than a regular bank, or why it pairs well with PPF vs FD, a common debate among Indian savers trying to decide where to put that 20%. The rule doesn’t tell you where to invest—it just tells you to invest.

Some people think budgeting means cutting out everything fun. The 70 20 10 rule says no. You get to live. You get to save. And you get to give back—whether that’s to charity, a startup you believe in, or your kid’s education. It’s the kind of system that works whether you’re a freelancer in Bangalore or a salaried employee in Pune. You’ll find posts here about 70 20 10 rule in action: how it helps people avoid debt traps, how it fits with long-term goals like the 15-15-15 rule for mutual funds, and how even small earners can use it to build real wealth over time. No fluff. No jargon. Just a clear path to financial peace of mind. Below, you’ll see real examples of how this rule changes lives—one paycheck at a time.