The 40 30 20 10 rule to saving and spending money

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Last updated :
March 27, 2023

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The 40 30 20 10 rule to saving and spending money

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.

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Shuaib Azam

Shuaib is a Marketing & Growth lead at Hubble. When he isn't working on growth initiatives, Shuaib writes fiction and doodles space monkeys.

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