Most people have heard of the 50/30/20 budget, but what is the 60/30/20 budget? The 60/30/10 budget better breaks down how to allocate your money. This budgeting strategy breaks down your monthly budget in a more detailed way. Below are the primary net-pay allocations of the 60/30/10 budget.

What Is The 60/30/10 Budget?


60/30/10 Budget Breakdown


  • Bills and Insurance – 20%
  • Mortgage/Rent – 20%
  • Housekeep/Allowances – 20%
  • Savings – 10%
  • Investments -10%
  • Renos/Projects – 10%
  • Gold – 5%
  • Silver – 5%


Just Starting Out


When starting a career, you will most likely have to pay more than twenty percent for rent. That may not be the case if you can live with roommates or family. That could be a way to decrease that percentage. While you may pay more rent, your insurance costs will be lower. You may still have to pay for other types of insurance, like health insurance which is required now in the United States because of ObamaCare.


How Does The 60/30/10 Budget Work?


You begin by allocating sixty percent of your monthly budget to covering your fixed bills, insurance, mortgage, rent, housekeeping, and a monthly allowance.


60% For Fixed Expenses


The first twenty percent goes towards your fixed bills and insurance. You will likely know how much you spend monthly on fixed bills such as groceries, fuel, and energy. You will also need to know how much you pay monthly for any insurance you may have: house, car, and health.

When you are just starting, you will not own a home, so you won’t have to worry about maintaining a home. That is extra money you can save or invest.


A Note On Paying Your Mortgage Or Rent


At most, pay 34% of your disposable income on your mortgage or rent. When you spend that much each month on a mortgage, you will become a mortgage slave. You are living above your means if you pay more than 34% each month on your mortgage. This means that you live in a neighborhood you cannot afford.


30% For Savings/Investments/Projects


The second thirty percent goes toward your savings, investments, and home projects. You can save a minimum of ten percent of your monthly income. You could put it into a savings account, high-interest savings account, or a money market account.


A savings account is how you can begin to build wealth. You can then find ways to invest the excess money you have each month. You can then learn about investing.


The next ten percent goes into investments. Investing is a broad term for anything that may generate a higher return on investment than you put into it. Common investments are real estate, the stock market, or an online business. Investments are not without risk. It would help if you decided on the right investment strategy that meets your financial goals and risk tolerance.


You can decide your investment strategy. Are you going to follow the traditional 60/40 stock to the bond portfolio, George Gammon’s 10/80/10 strategy, or the Dragon Portfolio? You could come up with your variation too.


This budget’s third part is saving ten percent of your monthly budget into real money. You are exchanging your devalued currency for gold and silver. You can adjust the percentage for this one if you are more bullish on gold or silver. Precious metals won’t make you rich. They are intended to help you secure your net worth.


10% In Precious Metals

Why Should You Save Your Money In Precious Metals?


Gold and silver are a store of value. They have the qualities of money compared to currency. Gold has historically been how people preserved their wealth. That is still the case today with wealthy families who understand money.


Basel III reclassified physical gold as a tier-one asset. The new Basel III standards will come into effect in 2023.


Precious metals are for generational wealth. You will pass these down to your children and grandchildren. One day, after you are dead, your grandkids will go through your stuff and find your gold and silver coins and bars among your junk. You will be passing treasure down to your future generations. Precious metals, especially gold, are a form of monetary insurance.


A Budget Makes You Independent


Freedom is one of the core values of Secure Single. By following a budget, especially one that allocates for saving and investing, you will be on your way to becoming financially independent. In a time when most Americans have debt, being debt free puts you on the road to financial freedom. You can then learn other strategies to improve your financial well-being.

Views expressed in this article are the author’s opinions and do not necessarily reflect the views of Secure Single. It is intended for informational and educational purposes only. It is not investment or financial advice. James Bollen is the author of Thriving Solo: How to Flourish and Live Your Perfect Life (Without A Soulmate). Now available in paperback and for the Kindle on Amazon. Subscribe to Secure Single’s Substack for free!
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James Bollen is the Founder and President of Secure Single. He is an entrepreneur and a content creator with the goal of helping all different types of singles to learn to thrive as a single person.
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