What is the 70/20/10 rule in budgeting?

The 50/30/20 rule assumes some of the following things are true: Your monthly income is consistent. You are a medium to high-income earner. You live in a low-medium cost of living area. It doesn’t account for the incredibly diverse cost of living depending on your location and situation, nor what to do if you have inconsistent income. If you fall outside of any of the traditional lifestyles it caters to, it might not be realistic for you at this point in time.

Is the 50/30/20 rule realistic?

The 50/30/20 rule assumes some of the following things are true: Your monthly income is consistent. You are a medium to high-income earner. You live in a low-medium cost of living area. It doesn’t account for the incredibly diverse cost of living depending on your location and situation, nor what to do if you have inconsistent income. If you fall outside of any of the traditional lifestyles it caters to, it might not be realistic for you at this point in time.

Lisa Lagace

Lisa Lagace's work can be found in a variety of international publications including NPR, USA Today, Paste Magazine, New Lines and more.

She has also contributed locally to Simplii Financial, Zolo, and Zoocasa, among others.

When she’s not busy writing about finance she can be found hanging out with all the dogs in the dog park, or binging her latest TV obsession.

She taught herself everything she knows about finance after graduating with significant student loans, and realizing her expensive education taught her nothing about the intricacies of money.