If you’ve ever felt like traditional budgeting doesn’t work for real life, you’re not alone. That’s why I created the 70/10/10/10 Budget Method, a simple, balanced money system designed to help you eliminate debt, enjoy your money without guilt and build financial stability that lasts.
This method forms the core of my Budget Right approach, and it’s helped everyday people feel more in control of their finances.
What Is the 70/10/10/10 Budget Method?
The 70/10/10/10 Budget Method is a practical way to divide your income into four clear categories:
70% for living expenses
10% for savings
10% for fun (Splash Cash)
10% for giving or donations
It’s not about being perfect, it’s about being intentional with your money. This method helps you build structure and flow into your cash, while still allowing space for joy, generosity and real-life challenges.
Why This Budgeting Method Works
Unlike strict budgets that leave you feeling restricted, the 70/10/10/10 method gives you permission to enjoy your money while still reaching your goals. It’s designed for sustainability, not financial burnout.
Here’s a breakdown of each category and why it matters:
70% – Expenses
This portion of your income is for all your essential and everyday living costs. That includes housing (like rent or mortgage), utilities, groceries, phone bills, transport, school fees, insurance and other regular expenses that keep your life running. If it’s a non-negotiable part of daily life, it goes here.
Many people find that their expenses creep beyond this 70% without realising it, often due to emotional spending, lack of clarity, or rising living costs. But with this method, you create a defined boundary around your spending. You’re not being restricted – you’re choosing to take back control and live within your means. That sense of clarity is empowering, especially when you’re juggling financial pressure or trying to get out of debt.
By containing your expenses within 70%, you give yourself the flexibility to also save, enjoy, and give. It’s not about perfection – it’s about progress and creating a healthy money flow.
This is your main cashflow bucket. The goal is to live comfortably within 70% of your income so you can create breathing room in your budget.
10% – Savings
This 10% is for your future security and peace of mind. It might go into an emergency fund, a high-interest savings account, or be used to pay down debt faster. It could also be set aside for long-term goals – like a home deposit, investments, or simply building a savings buffer (an emergency account) so you can stop living from payday to payday.
Even if you’ve never saved a cent before, this method helps you start small and stay consistent. Saving 10% of your income may feel out of reach at first, but remember, the goal is to build a habit, not hit a magic number. You can begin with 1% and build your way up.
This category is your financial “oxygen mask.” It’s what lets you breathe easier when life throws curveballs. It’s your quiet confidence – the knowledge that you’re planning ahead and protecting your future self.
Saving just 10% can transform your stress levels. Over time, this habit builds confidence, freedom and peace of mind.
10% – Splash Cash
This is your joy money – the money you spend just because it makes you happy. Maybe it’s brunch with friends, a new outfit, concert tickets, a beauty treatment, or takeaway on a Friday night. Whatever makes you feel good, this is the cashflow for it.
Why is this important? Because budgeting that’s all about sacrifice never lasts. When you deprive yourself too much, it often leads to binge spending or emotional blowouts.
Splash Cash gives you permission to enjoy your money without guilt, spreadsheets or overthinking.
It’s also a powerful mindset shift. When you know that 10% of your income is set aside for fun, you stop feeling like you’re always behind or missing out. You’re still being responsible – you’re just doing it with balance.
Budgeting shouldn’t be boring. Splash Cash gives you room to enjoy your money and prevents the burnout that leads to impulsive overspending.
10% – Giving
This part is for giving back – through charity donations, helping someone in need, supporting a local cause or even doing something kind for someone who’s struggling. It’s an optional but transformative piece of the puzzle.
Giving (even in small amounts) creates emotional wealth. It builds gratitude, reminds you of your values, and helps you feel abundant even if your financial situation is still a work in progress. It’s not about the amount – it’s about the intention.
When I was at rock bottom, the kindness of others helped me get through. Now, giving is part of my financial flow, and I encourage you to find a way to make it part of yours too.
Whether it’s $5 or $50, it makes a difference – to others, and to your own sense of purpose.
Giving fosters gratitude. Even small amounts help shift your mindset from scarcity to abundance, and make a difference in someone else’s life.
Who Is the 70/10/10/10 Method For?
This budgeting method is perfect for:
Individuals and families on low to moderate incomes
Anyone struggling to make ends meet
People in debt recovery or rebuilding their finances
Those who want a values-based approach to money
Budget beginners who need something simple and sustainable
If you’ve ever thought, “I just need a budget I can stick to,” this method is for you.
My Journey to Creating This Method
At 49, I was broke and homeless. By 55, I published my book Budget Right and created the tools that helped me rebuild from rock bottom.
This method wasn’t designed in a finance lab, it was born from real life. The 70/10/10/10 Budget Method helped me go from survival mode to financial stability. Now, I teach others how to do the same – with no shame, no jargon, and no guilt.
Get the Tools to Budget Right:
Buy the Budget Right Book – Real stories, real strategies, no fluff
Download the Budget Right Spreadsheet – Pre-filled, easy to use, and formatted to the 70/10/10/10 method. This is free when you purchase the book. The free code is provided in the book.