A 70-15-15 budget is a spending plan where you allocate your income into three categories: needs, wants, and savings. According to the references, the breakdown is as follows:
- 70% on Needs: This portion of your income is dedicated to essential expenses such as housing, food, transportation, utilities, and healthcare.
- 15% on Wants: This is allocated to non-essential items and leisure activities like dining out, entertainment, hobbies, and vacations.
- 15% on Savings: This segment covers financial goals such as emergency funds, debt repayment, investments, and retirement savings.
This budgeting approach can be suitable for families with lower incomes facing high living costs, as it prioritizes essential needs while still allowing for some discretionary spending and savings.
