The 40/30/20/10 rule is a popular, yet simple guideline for budgeting.
It goes like this:
- 40% of income should go towards necessities (such as rent/mortgage, utilities, and groceries)
- 30% should go towards discretionary spending (such as dining out, entertainment, and shopping) - Hubble Spending Money Account is just for this.
- 20% should go towards savings or paying off debt.
- 10% should go towards charitable giving or other financial goals.
It's important to note that this is a guideline and not a hard and fast rule.
Your financial situation may be unique and so it may require adjustments.