60 30 10 Rule Budget- The Get Rich Quick Budget In 2024

With a 60 30 10 rule budget, you have to use 60% of your take-home income on savings, invest or pay off debt, 30% for your regular needs, and 10% on wants.

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Financial hardships can come to anyone. As a financial advisor, I am not excluded. However, 60 30 20 rule budget saved me from downing financial difficulties. Are you facing financial hardship? 

Then 60 30 10 rule budget can help you get out of it fast. But what is the 60 30 10 rule budget? And how can you set up this budget rule? 

Well, don’t worry. In this post, I will describe every little detail about the 60 30 10 rule budget, its pros, and cons, how to achieve it, and the 60 30 10 rule budget examples along with our custom 60 30 10 rule budget calculator.

Find out What are the Four Walls of Budget?

Let’s start by understanding what is the 60/30/10 rule budget. 

What Is The 60 30 10 Rule Budget?  

60 30 10 Budget

In a 60 30 10 rule budget, your take-home income is divided into 3 categories. Here, take-home income represents your total income after deducting income tax, benefits, and others. The categories are 

60 % For Savings

According to the 60 30 10 rule budget savings will take 60% or the most significant chunk of your monthly income. By saving I don’t mean an emergency fund. I mean real savings apart from your hayday fund. You can use this percentage of your income to build up assets, invest, or pay off debt so that you can reach your financial goal faster. 

30% For Needs

The second number of the 60 30 10 budget represents your needs or necessary expenses and 30% is allocated for it. So, you have to use 30% of your take-home pay for basic needs like

  • Food
  • Transportation,
  • Rent
  • Utility bills

20% For Wants 

The last number of 60 30 10 budget or 10 serve as wants. Here, want is luxury or non-essential expenses like

  • Dining out
  • Streaming services
  • Gym or yoga membership
  • Travel 

So, to simply put it the 60/30/10 rule budget suggests you to spend 60% on savings, 30% on essential needs, and 10% on wants or non-essentials every month. 

Now let’s look at a 60 30 10 rule money example to understand it better.

60 30 10 Rule Examples

For the 60 30 10 rule budget example, let’s assume Mr. X has a total income of $10,000 and he has to pay $450 on income tax and benefits. 

So, his take-home pay would be – (10000-450)$= $9550

According to the 60 30 10 rule money, 

  • He should save, invest or pay debts= $9550*.60= $5730
  • Secondly, he should spend on needs= $9550*.30=$2865
  • Lastly, he should spend on wants= $9550*.30= $955
60 30 10 Rule
60 30 10 Rule Budget Examples

It’s time to look at who are the most ideal candidates for this budget. 

Idea Candidates For The 60 30 10 Rule Budget

Saving up 60% of your income on a monthly basis is not an easy task. However, for people who are highly motivated toward reaching their financial goals, it’s achievable. 

So, let’s look at who are the most ideal candidates for the 60 30 10 rule budget

  • Young Adults living alone or have a small family with a decent monthly income. 
  • People who don’t fall under the living paycheck-to-paycheck category. 
  • Highly motivated people with immense financial targets. 
  • Wish to create an emergency fund fast. 
  • Individuals who have a modest income and trying to pay off debt fast. 
  • People who are highly interested in the FIRE movement. 
  • Have goals like buying a house or building wealth. 
  • People who are not struggling financially. 

Now that we have an all-out idea about what the 60/30/10 rule budget is and who is the most suitable for it. So, let’s look how to implement this 60 30 10 budget rule.  

How To Create The 60 30 10 Rule Budget For Yourself

After looking at the pros and cons of the 60 30 10 rule budget, if you are still interested then let’s start with budget 60 30 10.

Find Out Your Take-Home Income 

The first step of budgeting with the 60 30 10 rule is to find out your actual take-home pay. 

If you are a W2 employee or simply do only one job, then your monthly paycheck is your take-home income. As your employer has already deducted the income tax and benefits from the paycheck. 

But if you are a business owner or an independent contractor or have multiple revenue sources then you need to calculate your income after tax. You can use this free IRS Tool to determine your income after tax.  However, it’s suggested to consult a tax professional for determining your take-home pay. 

Analyzing Your Previous Monthy Spendings

The second step is to analyze your previous monthly spending. Because only after analyzing your previous spending you can determine your essential and non-essential spending. 

If you already use an app or spreadsheet for your spending then the job is easy. But if you don’t then look at your previous bills and bank statements for analyzing your spending. 

It’s an important step. As it will significantly help you to budget and understand your spending habits. 

Now it’s time to set up the 60 30 10 rule budget. 

Calculate And Set Aside 60% Of Your Income For Savings 

After completing the above steps, it’s time to start budgeting. First, calculate and find out how much 60% of your take-home income is. 

Then use this 60% for achieving your financial goals. You can spend this on 

  • Saving 
  • Investing
  • Pay of debt
  • Building up assets. 

As different people have different financial targets so, it will be different for all.  The important take is to spend 60% on reaching your financial goals. So, use this fund according to your situation. 

Spend 30% On Your Needs  

In this step, you need to look at the results of step 2. Because only after analyzing your previous spending you can determine your needs or necessary spending.

However, remember to add here the basic needs or spending you can not avoid. A few examples of it can be 

  • Food 
  • Rent/ Mortgage
  • Insurance 
  • Utility Bills 
  • Transportation Cost 
  • Household costs 
  • Healthcare and medicines 
  • Laundries 

As you will be spending less, so you might need to adjust your lifestyle. 

Also, check How Much You Should Spend on Your Rent

Note: Never cut costs on the most essential things like health care or food. Because if you cut costs on these now then you might need to spend 2-3 times more in future. 

Allocate 10% For Wants 

After spending on savings and needs, you will keep 10% of your income for wants. Wants are the non-essential spending like 

  • Dining in Restaurants or Takeaway
  • New Cloths 
  • Streaming Services
  • Memberships for Gyms, yoga, or others 
  • Travel 
  • Pubs or Bars
  • Dates

However, there is less money for wants, so only spend on things that give you the most pleasure. But don’t completely ignore wants. Because treating yourself once in a while will be good for your mental health. 

Keep Track Of All Your Spending

After starting with the 60 30 10 rule budget, start maintaining a spending spreadsheet or a budget app. 

It will help you to monitor all your spending. Moreover, it will also help you evaluate if the budget rule is right for you or not. 


At the end of the month do monthly reviews and adjustments. It will help you understand how successful you are at maintaining the 60 30 10 rule budget and also cutting costs. 

Keep repeating this cycle every month and you will get adjusted to this budget in no time. 

For your convenience, I have made a 60 30 10 rule budget calculator. Let’s have a look at it. 

60 30 10 Rule Budget Calculator

Our 60 30 10 rule budget calculator automatically divides how much you have to save, and how much you have to spend on wants along with needs. 

You just need to enter your take-home pay on the first box below and this 60 30 10 rule budget calculator will show the results in the below 3 boxes.

Note: We care about your privacy and do not save any of your data. So, there is no submit button and you can use it without worrying. 

60 30 10 Rule Budget Spreadsheet

In Case, you want to make your own 60 30 10 budget calculator with a spreadsheet or Excel then apply the below formulas. 

  • A= Total Monthly Take Home Pay
  • B= Savings. Formula -(=a2*.60)
  • C=Total Savings. Formula -(SUM(b2:b100)
  • D= Needs. Formula-(=a2*.30)
  • E=Total Need Expenses. Formula-(SUM(d2:d100)
  • F= Wants. Formula-(=a2*.10)
  • G=Total Want Expenses. Formula-(SUM(f2:f100)

This 60 30 10 budget calculator with Excel or google sheet can make your life a lot easier in case you want to try 60 30 10 budget.

60 30 10 Budget Calculator.
60 30 10 Budget Calculator

We have also made a  60 30 10 rule budget template for you let’s have a look at it. 

60 30 10 Rule Budget Template

You can save this 60 30 10 rule budget template and print it. So, that you can keep track of all your expenses. 

60 30 10 Rule Budget Template
60 30 10 Rule Budget Template

By this time we have found out what is the 60 30 10 rule budget, an example of 60 30 10 rule finance, how to implement 60 30 10 budget rule, who is suitable for 60 30 10 budget rule. So, now let’s look at the pros and cons of 60 30 10 rule budget.

Advantages And Disadvantages Of  The 60 30 10 Rule Budget

Every budget rule has its own set of advantages and disadvantages. The 60 30 10 Rule Budget is no different. So, before going further let’s have a look at the advantages and disadvantages of the 60 30 10 rule money. 


Accelerates You To Reach Your Financial Goals Faster. 

The main upside of the 60 30 10 rule budget is it helps you reach your financial targets faster. As this budget suggests you, invest or save the majority of your take-home pay. So, you achieve your goals more quickly. 

Helps You To Avoid Unnecessary Spending 

As you will be saving 60% of your income so you will be more careful about spending your money. As a result, you will end up spending less on unnecessary stuff. 

Makes You Better Prepared For Emergencies

The  60 30 10 rule budget helps you save a significant chunk of your paycheck. As a result, your savings will increase month by month and you can use your savings in any emergencies. 

Inspires You To Increase Your Income

If you follow the  60 30 10 rule budget tightly then your spending habits will decrease. As a result, you will focus more on increasing your income so that you can keep up with your regular spending habits. 

Makes You More Financially Disciplined 

The 60 30 10 rule budget rearranges your entire finances and makes it more disciplined. As a result, you become more financially informed and less stressed about your finances. 

Furthermore, there are some other advantages of the  60 30 10 rule budget like you get to save more for retirement, become financially independent quickly, etc. 

Now let’s look at the disadvantages. 


Really Hard To Follow  

Though it’s a good budget plan. But for most people, it will be tough to follow. As it’s less focused on spending. 

Live With Less Lifestyle Cost 

With the rising inflation reducing lifestyle costs might have a negative effect on you. So, don’t try the 60 30 10 rule if you don’t have a decent salary. 

Not Suitable For All

It might be an effective budget plan. However, it’s not suitable for everyone. 

By now we have a thorough understanding of the 60 30 10 rule budget. So, it’s time to look at how to make the perfect 60 30 10 rule budget for yourself. 

Now let’s look at some of the frequently asked questions on this topic.

Is The 60 30 10 Rule Budget Practical? 

Though the 60 30 10 rule budget might seem unrealistic. But for many ambitious individuals, it might be the best budget plan to achieve their goals faster. So, it can be quite practical. 

However, it certainly is not for everyone. Because according to a May 2022 LendingClub press release,

“Around ⅔ of the U.S. Population Now Lives Paycheck to Paycheck.” 


Anyone living paycheck to paycheck can never budget like the 60 30 10 rule. Cash stuffing would be more suitable for them.

Moreover,  the 60 30 10 rule budget won’t work for anyone struggling financially or having a big family to take care of. So, it’s not a realistic budget solution for everyone. 

On the other hand, according to a Shopify survey,

“ 39% of the people are considering joining the FIRE or Financial Independence, Retire Early movement.” 

-Shopify Blog

So, yes there are a lot of people who can follow the 60 30 10 rule budget to gain financial independence and retire early. Furthermore, it can help people pay off their debts faster too. 

As a result, it can be a pretty ambitious budget plan. But it’s practical for many. 

By this time we have looked at all the ins and outs of the 60 30 10 budget rule. Now it’s time to find out if it’s the right budget for you or not.

Is The 60 30 10 Budget Rule Suitable For You?

Actually, it depends on your financial goals, how motivated you are towards your goals and how much is your take-home pay. 

Because everyone has their own set of priorities and plans for the future. So, if your plans match it and you fit the criteria for an ideal candidate of the 60 30 10 budget rule discussed above then it might be the perfect budget plan for you. 

However, if you don’t have a modest income then the 60 30 10 budget rule might be difficult for you to achieve. You might need to find a side hassle for this to work or you can follow our simple low-income budget strategy.

Finally, don’t be too hard on yourself, and always protect the four walls. Because it’s important to stay well both mentally and physically. If you are not well then there is no meaning in having all the savings in the world. 

In Summary 

Budgeting is important for your financial well-being. But remember to not implement a budget that can cost you your physical well-being. Moreover, 60 30 20 budget rule is more suitable for young ambitious people not for a family with kids.

That’s it for now. Have a great day. 

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5 thoughts on “60 30 10 Rule Budget- The Get Rich Quick Budget In 2024”

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