75/15/10 rule: control your budget

Designing your budget according to this model allows you to maintain financial discipline while preparing for the future. It is essential for individuals to personalize this budget structure so that it fits their unique situation and life plans. Flexibility is also a key aspect, allowing adjustments in line with changing personal and economic circumstances. The use of budget management applications can in particular help to implement this rule. This encourages regular savings, which is essential for building a secure financial future.

What is the 75/15/10 rule?

The 75/15/10 rule is a budget management method designed to balance expenses by categorizing monthly income.

Good to know : Other budget management methods exist such as Rule 50 30 20.

Income distribution: 75% needs and desires, 15% investments, 10% savings

75% for needs, desires and pleasures : This part of the budget is devoted to essential expenses such as housing, bills, food, transport, as well as personal pleasures. This includes not only what is essential on a daily basis but also hobbies, outings and other purchases that contribute to well-being and personal development. This is the most important part of the budget, combining necessity and pleasure.

15% for investments : This portion is intended for financial investments or investments in personal or professional projects. It's about allocating resources to generate long-term profits or returns on investment, thereby contributing to the growth of your wealth and securing your financial future.

10% for savings: Saving, which is an essential part of financial management, is intended to prepare for the future and to build a reserve for emergencies or long-term projects. This prudent allocation makes it possible to protect yourself against the unexpected and to plan future goals calmly, whether personal or professional, while ensuring stable financial security.

How do you put the 75/15/10 rule into practice?

Putting the 75/15/10 rule into practice requires a precise organization of its finances. The percentages reflect the proportions of after-tax income to be allocated to expenses, savings, and investments respectively.

With Finary you can set up the management of your budget automatically.

Establish a balance sheet of your expenses and income

It is crucial to know the exact amount of net monthly income, that is, how much money is available after paying taxes. Once this figure is in hand, we list all the monthly expenses, from the most necessary to the most ancillary, to have a clear vision of the current distribution of finances.

Classify expenses and adapt the rule to your situation

Expenses must then be categorized: essential, such as rent or groceries, and superfluous, such as non-essential outings or subscriptions. If it appears that essential expenses exceed 75% of net income, the percentages will have to be adjusted to reflect financial reality while trying to respect the spirit of the rule.

Concrete example with a monthly income

Let's take the example of an individual with a net monthly income of €2,000. According to the 75/15/10 rule, expenses should not exceed €1,500, investments would be €300 and savings of €200. This model helps to prioritize financial allocations while promoting savings and building long-term wealth.

Strategies for effective savings with the 75/15/10 rule

Investment ideas for savings

To maximize the effectiveness of savings according to the 75/15/10 rule, it is recommended to opt for secure investments such as savings books Or the life insurance, offering attractive interest rates. The exploration of funds in euros Or of retirement savings plans can also be beneficial for capital growth thanks to compound interest. Setting short- and long-term savings goals, including creating a safety reserve for emergency situations.

Tips for automating savings and adjusting allocation

In order to maintain financial discipline, it is advisable to put in place monthly automatic transfers from your current account to various savings vehicles. This makes it easy to accumulate savings on a regular basis and without conscious effort. It is also a good idea to periodically reassess and adjust the distribution of percentages, especially after significant changes in financial or personal life, to align the income allocation with financial goals scalable.

Limits and flexibility of the 75/15/10 rule

While the 75/15/10 rule is a useful guide to organizing your budget, it has limitations and may require adjustments to better reflect individual financial realities.

Difficulty in classifying expenses

Classifying expenses into fixed categories according to the 75/15/10 rule can be complex. The distinction between necessities (75%), investments (15%) and savings (10%) is not always clear. Les discretionary spending can sometimes be located in a gray zone, their perception varying according to the financial and personal context of each person.

Customizing the rule according to individual needs

Adaptability is essential for effective financial planning with the 75/15/10 rule. Depending on financial circumstances, it may be necessary to change the proportions allocated to each category to promote financial stability and achieve the goals of wealth. Adjustments can be integrated by a budget planner to meet specific needs such as unexpected expenses or greater savings ambitions. The flexibility of 75/15/10 method allows individuals to adjust it to life's fluctuations, making this tool of budget dynamic and personalized.

Tools and resources for applying the 75/15/10 rule

The 75/15/10 rule is a personal budget management method where 75% of income is allocated to current expenses, 15% to savings, and 10% to debt repayments. To apply it effectively, there are a variety of tools and resources available.

Budget management apps and online calculators

Budget apps: Apps like Finary, Bankin' or Linxo offer features that facilitate expense tracking and automatic categorization, allowing users to effectively apply the 75/15/10 rule. These applications, often equipped with intelligent algorithms, allow you to visualize the distribution of expenses at a glance. These applications can connect directly to bank accounts, automatically classify transactions, and display charts illustrating financial flows.

Online budget calculators also make it easy to distribute income according to the 75/15/10 rule, thus offering a clear vision of financial goals.

Practical spreadsheets and templates

Of worksheets pre-established ones facilitate the implementation of the 75/15/10 rule by structuring the categories of expenses, savings and debt repayments. They allow manual control and can be customized according to the specific needs of each user. Les practical models, often included in office software, also serve as an initial guide for anyone looking to obtain a financial education and to better manage your budget.

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