by
Garrett Clark
Wealth Management
Mastering Your Finances with the 70/15/15 Budgeting Method
Tired of complicated budgeting systems that never stick? The 70/15/15 rule offers a simple, flexible way to manage your money—no matter your income level or profession. In this blog, we break down how to divide your income into needs, wants, and savings to create a sustainable financial plan that works. Whether you're a solo business owner, first responder, or side hustler, this method helps you live well today while preparing for tomorrow. Plus, see how pairing it with a Solo 401(k) can take your savings even further.
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Budgeting doesn’t have to be complicated. Whether you're self-employed, running a side hustle, or just trying to get a better handle on your finances, a simple, flexible strategy can make all the difference. Enter the 70/15/15 budgeting method — a practical framework that helps you balance needs, wants, and savings in a sustainable way.
This blog explores how the 70/15/15 rule works, why it’s effective, and how you can start applying it today to take control of your money and build lasting financial stability.
What Is the 70/15/15 Budgeting Rule?
The 70/15/15 method is a percentage-based budgeting system that divides your after-tax income into three clear categories:
70% for Needs
15% for Wants
15% for Savings or Investments
It’s designed to simplify your financial plan while still giving you the freedom to enjoy life today and prepare for tomorrow.
Why This Budgeting Strategy Works
Many traditional budgeting systems fail because they are too rigid, too complex, or don’t adjust well to fluctuating income. The 70/15/15 rule is different:
It scales with your income. Whether you make $2,000 or $10,000 a month, the structure remains the same.
It’s easy to follow. No complicated spreadsheets or category micromanagement.
It builds consistency. Instead of reactive spending, you plan proactively.
It balances the now and the future. You enjoy your money while saving and investing smartly.
This method is especially effective for solo entrepreneurs, gig workers, and first responders who might have inconsistent income streams.
Budgeting doesn’t have to be complicated. Whether you're self-employed, running a side hustle, or just trying to get a better handle on your finances, a simple, flexible strategy can make all the difference. Enter the 70/15/15 budgeting method — a practical framework that helps you balance needs, wants, and savings in a sustainable way.
This blog explores how the 70/15/15 rule works, why it’s effective, and how you can start applying it today to take control of your money and build lasting financial stability.
What Is the 70/15/15 Budgeting Rule?
The 70/15/15 method is a percentage-based budgeting system that divides your after-tax income into three clear categories:
70% for Needs
15% for Wants
15% for Savings or Investments
It’s designed to simplify your financial plan while still giving you the freedom to enjoy life today and prepare for tomorrow.
Why This Budgeting Strategy Works
Many traditional budgeting systems fail because they are too rigid, too complex, or don’t adjust well to fluctuating income. The 70/15/15 rule is different:
It scales with your income. Whether you make $2,000 or $10,000 a month, the structure remains the same.
It’s easy to follow. No complicated spreadsheets or category micromanagement.
It builds consistency. Instead of reactive spending, you plan proactively.
It balances the now and the future. You enjoy your money while saving and investing smartly.
This method is especially effective for solo entrepreneurs, gig workers, and first responders who might have inconsistent income streams.
A simple plan, consistently followed, builds the freedom complex budgets promise but rarely deliver.
Garrett Clark
Director of Sales
Breaking Down the 70/15/15 Rule
1. 70% on Needs
These are the essentials you must cover to maintain your lifestyle:
Rent or mortgage
Utilities (water, electricity, internet)
Transportation (car payments, fuel, insurance)
Groceries
Health insurance
Minimum debt payments
If you’re spending more than 70% on needs, it may be time to audit your expenses. Can you refinance, downsize, or cut back on recurring costs? Your goal is to keep essentials sustainable so that you're not living paycheck to paycheck.
2. 15% on Wants
This category is where fun and flexibility live:
Dining out
Streaming services
Hobbies and recreation
Vacations and weekend getaways
Shopping for non-essentials
The 15% allocation prevents overspending while still letting you enjoy life. You don’t have to deprive yourself—just keep it intentional. It’s also a great way to build discipline without burnout.
3. 15% on Savings & Investments
This is where your future lives:
Emergency fund contributions
Retirement accounts (like a Solo 401(k), Roth IRA, or Traditional IRA)
Investment accounts
Sinking funds (home repairs, future travel, education)
If you’re self-employed or a small business owner, this 15% might also include contributions to your Solo 401(k) or health savings account (HSA). It’s critical to prioritize this category to grow your financial security over time.
Who Should Use the 70/15/15 Rule?
This method is ideal for:
Freelancers and gig workers with inconsistent monthly income
Self-employed individuals who want a simple system that scales
First responders with part-time income or side businesses
New graduates or young professionals looking for a beginner-friendly budgeting method
Anyone tired of overcomplicated budgeting apps and spreadsheets
Because it’s based on percentages, the 70/15/15 rule adapts well to any lifestyle or income bracket.
How to Get Started
Step 1: Calculate Your Monthly After-Tax Income
Figure out your average monthly income after taxes. If you’re self-employed, subtract your business expenses and estimate your tax liability first.
Step 2: Multiply Your Income by Each Percentage
For example, if your monthly income is $5,000:
70% Needs = $3,500
15% Wants = $750
15% Savings = $750
Step 3: Create Separate Bank Accounts
Many people find it helpful to create dedicated bank accounts for each category. You can even automate transfers on payday to streamline the process.
Step 4: Track & Adjust Monthly
At the end of each month, review your spending. Did you overspend on wants? Underfunded savings? Adjust your behavior or the percentages if needed—it’s a guideline, not a prison.
Real-Life Example: First Responder with a Side Hustle
Jake is a firefighter who also runs a weekend handyman business. His after-tax monthly income averages $6,000. By using the 70/15/15 rule:
He budgets $4,200 for needs (house payment, tools, insurance)
He allows $900 for lifestyle expenses
He commits $900 to his emergency fund and Solo 401(k)
Over time, this system has helped him pay off debt, build a savings cushion, and fund his retirement outside of his pension.
Tips for Long-Term Success
Start slow. If 15% into savings feels like too much right now, begin with 5% and increase gradually.
Use automation. Let your bank or budgeting app move money for you.
Celebrate milestones. Hit a $1,000 savings goal? Paid off a credit card? Acknowledge it.
Review quarterly. Life changes. Your budget should, too.
Bonus: Pair it with a Solo 401(k)
If you're self-employed or have side income, combining this budgeting strategy with a Solo 401(k) can supercharge your savings. By contributing a portion of your 15% savings category to a Solo 401(k), you can:
Reduce your taxable income
Invest in alternative assets like real estate or precious metals
Build retirement savings faster thanks to higher contribution limits
Final Thoughts
The 70/15/15 budgeting rule offers a simple yet powerful structure for managing your money. It doesn’t require apps, spreadsheets, or financial degrees—just commitment and clarity.
By giving every dollar a purpose, this method creates space for both responsibility and freedom. You cover your needs, enjoy your wants, and invest in your future.
If you're looking to improve your financial life without the stress, start with this framework. You'll be amazed at how fast progress follows simplicity.
Need help setting up your Solo 401(k) or savings plan? Visit www.survival401k.com and take the first step toward financial freedom today.
Breaking Down the 70/15/15 Rule
1. 70% on Needs
These are the essentials you must cover to maintain your lifestyle:
Rent or mortgage
Utilities (water, electricity, internet)
Transportation (car payments, fuel, insurance)
Groceries
Health insurance
Minimum debt payments
If you’re spending more than 70% on needs, it may be time to audit your expenses. Can you refinance, downsize, or cut back on recurring costs? Your goal is to keep essentials sustainable so that you're not living paycheck to paycheck.
2. 15% on Wants
This category is where fun and flexibility live:
Dining out
Streaming services
Hobbies and recreation
Vacations and weekend getaways
Shopping for non-essentials
The 15% allocation prevents overspending while still letting you enjoy life. You don’t have to deprive yourself—just keep it intentional. It’s also a great way to build discipline without burnout.
3. 15% on Savings & Investments
This is where your future lives:
Emergency fund contributions
Retirement accounts (like a Solo 401(k), Roth IRA, or Traditional IRA)
Investment accounts
Sinking funds (home repairs, future travel, education)
If you’re self-employed or a small business owner, this 15% might also include contributions to your Solo 401(k) or health savings account (HSA). It’s critical to prioritize this category to grow your financial security over time.
Who Should Use the 70/15/15 Rule?
This method is ideal for:
Freelancers and gig workers with inconsistent monthly income
Self-employed individuals who want a simple system that scales
First responders with part-time income or side businesses
New graduates or young professionals looking for a beginner-friendly budgeting method
Anyone tired of overcomplicated budgeting apps and spreadsheets
Because it’s based on percentages, the 70/15/15 rule adapts well to any lifestyle or income bracket.
How to Get Started
Step 1: Calculate Your Monthly After-Tax Income
Figure out your average monthly income after taxes. If you’re self-employed, subtract your business expenses and estimate your tax liability first.
Step 2: Multiply Your Income by Each Percentage
For example, if your monthly income is $5,000:
70% Needs = $3,500
15% Wants = $750
15% Savings = $750
Step 3: Create Separate Bank Accounts
Many people find it helpful to create dedicated bank accounts for each category. You can even automate transfers on payday to streamline the process.
Step 4: Track & Adjust Monthly
At the end of each month, review your spending. Did you overspend on wants? Underfunded savings? Adjust your behavior or the percentages if needed—it’s a guideline, not a prison.
Real-Life Example: First Responder with a Side Hustle
Jake is a firefighter who also runs a weekend handyman business. His after-tax monthly income averages $6,000. By using the 70/15/15 rule:
He budgets $4,200 for needs (house payment, tools, insurance)
He allows $900 for lifestyle expenses
He commits $900 to his emergency fund and Solo 401(k)
Over time, this system has helped him pay off debt, build a savings cushion, and fund his retirement outside of his pension.
Tips for Long-Term Success
Start slow. If 15% into savings feels like too much right now, begin with 5% and increase gradually.
Use automation. Let your bank or budgeting app move money for you.
Celebrate milestones. Hit a $1,000 savings goal? Paid off a credit card? Acknowledge it.
Review quarterly. Life changes. Your budget should, too.
Bonus: Pair it with a Solo 401(k)
If you're self-employed or have side income, combining this budgeting strategy with a Solo 401(k) can supercharge your savings. By contributing a portion of your 15% savings category to a Solo 401(k), you can:
Reduce your taxable income
Invest in alternative assets like real estate or precious metals
Build retirement savings faster thanks to higher contribution limits
Final Thoughts
The 70/15/15 budgeting rule offers a simple yet powerful structure for managing your money. It doesn’t require apps, spreadsheets, or financial degrees—just commitment and clarity.
By giving every dollar a purpose, this method creates space for both responsibility and freedom. You cover your needs, enjoy your wants, and invest in your future.
If you're looking to improve your financial life without the stress, start with this framework. You'll be amazed at how fast progress follows simplicity.
Need help setting up your Solo 401(k) or savings plan? Visit www.survival401k.com and take the first step toward financial freedom today.
Budgeting doesn’t have to be complicated. Whether you're self-employed, running a side hustle, or just trying to get a better handle on your finances, a simple, flexible strategy can make all the difference. Enter the 70/15/15 budgeting method — a practical framework that helps you balance needs, wants, and savings in a sustainable way.
This blog explores how the 70/15/15 rule works, why it’s effective, and how you can start applying it today to take control of your money and build lasting financial stability.
What Is the 70/15/15 Budgeting Rule?
The 70/15/15 method is a percentage-based budgeting system that divides your after-tax income into three clear categories:
70% for Needs
15% for Wants
15% for Savings or Investments
It’s designed to simplify your financial plan while still giving you the freedom to enjoy life today and prepare for tomorrow.
Why This Budgeting Strategy Works
Many traditional budgeting systems fail because they are too rigid, too complex, or don’t adjust well to fluctuating income. The 70/15/15 rule is different:
It scales with your income. Whether you make $2,000 or $10,000 a month, the structure remains the same.
It’s easy to follow. No complicated spreadsheets or category micromanagement.
It builds consistency. Instead of reactive spending, you plan proactively.
It balances the now and the future. You enjoy your money while saving and investing smartly.
This method is especially effective for solo entrepreneurs, gig workers, and first responders who might have inconsistent income streams.
A simple plan, consistently followed, builds the freedom complex budgets promise but rarely deliver.
Garrett Clark
Director of Sales
Breaking Down the 70/15/15 Rule
1. 70% on Needs
These are the essentials you must cover to maintain your lifestyle:
Rent or mortgage
Utilities (water, electricity, internet)
Transportation (car payments, fuel, insurance)
Groceries
Health insurance
Minimum debt payments
If you’re spending more than 70% on needs, it may be time to audit your expenses. Can you refinance, downsize, or cut back on recurring costs? Your goal is to keep essentials sustainable so that you're not living paycheck to paycheck.
2. 15% on Wants
This category is where fun and flexibility live:
Dining out
Streaming services
Hobbies and recreation
Vacations and weekend getaways
Shopping for non-essentials
The 15% allocation prevents overspending while still letting you enjoy life. You don’t have to deprive yourself—just keep it intentional. It’s also a great way to build discipline without burnout.
3. 15% on Savings & Investments
This is where your future lives:
Emergency fund contributions
Retirement accounts (like a Solo 401(k), Roth IRA, or Traditional IRA)
Investment accounts
Sinking funds (home repairs, future travel, education)
If you’re self-employed or a small business owner, this 15% might also include contributions to your Solo 401(k) or health savings account (HSA). It’s critical to prioritize this category to grow your financial security over time.
Who Should Use the 70/15/15 Rule?
This method is ideal for:
Freelancers and gig workers with inconsistent monthly income
Self-employed individuals who want a simple system that scales
First responders with part-time income or side businesses
New graduates or young professionals looking for a beginner-friendly budgeting method
Anyone tired of overcomplicated budgeting apps and spreadsheets
Because it’s based on percentages, the 70/15/15 rule adapts well to any lifestyle or income bracket.
How to Get Started
Step 1: Calculate Your Monthly After-Tax Income
Figure out your average monthly income after taxes. If you’re self-employed, subtract your business expenses and estimate your tax liability first.
Step 2: Multiply Your Income by Each Percentage
For example, if your monthly income is $5,000:
70% Needs = $3,500
15% Wants = $750
15% Savings = $750
Step 3: Create Separate Bank Accounts
Many people find it helpful to create dedicated bank accounts for each category. You can even automate transfers on payday to streamline the process.
Step 4: Track & Adjust Monthly
At the end of each month, review your spending. Did you overspend on wants? Underfunded savings? Adjust your behavior or the percentages if needed—it’s a guideline, not a prison.
Real-Life Example: First Responder with a Side Hustle
Jake is a firefighter who also runs a weekend handyman business. His after-tax monthly income averages $6,000. By using the 70/15/15 rule:
He budgets $4,200 for needs (house payment, tools, insurance)
He allows $900 for lifestyle expenses
He commits $900 to his emergency fund and Solo 401(k)
Over time, this system has helped him pay off debt, build a savings cushion, and fund his retirement outside of his pension.
Tips for Long-Term Success
Start slow. If 15% into savings feels like too much right now, begin with 5% and increase gradually.
Use automation. Let your bank or budgeting app move money for you.
Celebrate milestones. Hit a $1,000 savings goal? Paid off a credit card? Acknowledge it.
Review quarterly. Life changes. Your budget should, too.
Bonus: Pair it with a Solo 401(k)
If you're self-employed or have side income, combining this budgeting strategy with a Solo 401(k) can supercharge your savings. By contributing a portion of your 15% savings category to a Solo 401(k), you can:
Reduce your taxable income
Invest in alternative assets like real estate or precious metals
Build retirement savings faster thanks to higher contribution limits
Final Thoughts
The 70/15/15 budgeting rule offers a simple yet powerful structure for managing your money. It doesn’t require apps, spreadsheets, or financial degrees—just commitment and clarity.
By giving every dollar a purpose, this method creates space for both responsibility and freedom. You cover your needs, enjoy your wants, and invest in your future.
If you're looking to improve your financial life without the stress, start with this framework. You'll be amazed at how fast progress follows simplicity.
Need help setting up your Solo 401(k) or savings plan? Visit www.survival401k.com and take the first step toward financial freedom today.