Archive · 29 Dec 2025
70/10/10/10 Rule Fixes Vanishing Salaries
Many people find their salary disappearing quickly after payday.
A new budgeting rule called the 70/10/10/10 rule can help.
This rule divides your income into four parts: 70% for everyday expenses like rent and groceries, 10% for long-term investments like retirement plans, 10% for short-term savings for emergencies, and 10% for paying off debts or improving yourself through courses.
By following this rule, you can ensure that every part of your income has a purpose and you don't run out of money before the next payday.
Experts suggest tracking your expenses for a month first and then gradually adjusting to this new budgeting method.
Automating your savings and investments can also help you stay on track.
The 70/10/10/10 rule divides income into four parts: 70% for expenses, 10% for investments, 10% for savings, and 10% for debt or self-growth.
70% covers household expenses like rent, groceries, and utilities.
10% for investments goes into long-term instruments like mutual funds and retirement plans.
10% for savings funds short-term needs and emergencies, with a recommendation to save at least six months’ expenses.
The final 10% is for debt repayment or self-development activities like courses and upskilling.
- Who
- Young professionals and mid-career earners
- What
- 70/10/10/10 budgeting rule
- When
- December 29, 2025
- Where
- Not specified
- Why
- To manage income and avoid living paycheck to paycheck
- Rule Name
- 70/10/10/10 Rule
- Purpose
- Budgeting framework to manage income
- 70% Allocation
- Regular expenses (rent, groceries, utilities, etc.)
- 10% Allocation (Investments)
- Long-term investments (mutual funds, PPF, NPS, etc.)
- 10% Allocation (Savings)
- Short-term savings and emergencies
- 10% Allocation (Debt/Self-Growth)
- Debt repayment or self-development (courses, upskilling)
- Emergency Corpus Recommendation
- At least six months’ expenses
- Implementation Tip
- Track expenses for a month before implementing