Learn all about the 10 10 80 Budget and how it can help you save money while also contributing to the causes you care about

In the realm of personal finance, it’s paramount to adopt a budgeting strategy that aligns seamlessly with your financial aspirations, lifestyle, and personal values. Enter the 10 10 80 budget, also known as the 10 10 80 plan, a simple yet potent financial framework that will allow you to live your life, save, and give to others every single month. 

I particularly like this way of budgeting because it allows you to plan to save money but also to give back to the community and get into the habit of charitable giving and philanthropy.

In this post, I will share everything you should know about the 10 10 80 budget, and will point you to a very helpful and user-friendly template I created just for you, my lovely reader!

Let’s get started.

Understanding the 10 10 80 Budget

The 10 10 80 budget, also referred to as the 10 10 80 rule, is a straightforward yet highly effective financial strategy that segments your income into three distinct categories:

  • Donations (10%): this segment of your income should be allocated for one or more charities that you wish to support.
  • Savings (10%): The next 10% is designated to ensure your future financial security. This encompasses contributions to your savings accounts, retirement funds, and emergency fund. Essentially, you’re paying yourself first.
  • Lifestyle (80%): The remaining 80% is earmarked for other wants and needs spending, which includes bills, groceries, eating out, transport, and all the other types of expenditure you normally incur.

Constructing Your 10 10 80 Budget Plan

Step 1: Calculate Your Income

Initiate the process by determining your monthly or yearly income. This includes your salary, freelance earnings, and any other sources of financial inflow.

Step 2: Categorize Expenses

Catalogue all your monthly expenses and categorize them meticulously into the three main categories: Donations, Savings, and Lifestyle. Leave no expense unaccounted for.

Step 3: Allocate Proportions

Put the 10 10 80 principle into action by apportioning the appropriate percentage to each category. For instance, if your monthly income totals £2,000, allocate £200 to Donations, £200 to Savings, and £1,600 to Lifestyle.

Step 4: Create a 10-10-80 Budget Worksheet

Leverage budgeting tools or spreadsheet software to craft a detailed budget plan. This will serve as your compass for navigating your finances.

You can create your own worksheet, or you can use the one I created!

Tracking Your Transactions and Gauging Progress

To effectively manage your finances via the 10 10 80 budget, it’s imperative to monitor your transactions consistently. Here’s how:

Document All Expenses

Develop the habit of recording every expenditure, no matter how trivial. I suggest using my spreadsheet for that, as you will really need to track every single transaction. To make this easier, avoid using cash, so that you can easily export your transactions directly from your online banking portal.

Categorize Transactions

Ensure each expense fits appropriately into the correct category—Essentials, Savings, or Lifestyle. This ensures your budget remains transparent and manageable.

Review and Adjust

Regularly scrutinize your transactions to assess how closely you’re adhering to your budget. If you find yourself consistently overspending in one area, consider revising your allocations accordingly.

Set Financial Goals

Harness your budget as a potent tool for realising financial objectives. Be it saving for a vacation, repaying debt, or establishing an emergency fund, the 10-10-80 budget facilitates your journey to financial triumph.

Pros and Cons of the 10 10 80 Budget Principle


  • Simplicity: the 10 10 80 budget is remarkably easy to comprehend and implement, rendering it ideal for novices in the realm of budgeting.
  • Emphasis on Savings: by dedicating 10% of your income to savings as a priority, you are constructing a robust financial base for the future.
  • Emphasis on Donations and Charitable giving: this budget encourages to always set aside a little bit of your income to support the causes you care about. If you manage to turn this into a lifelong habit, you are setting yourself up to be a wonderful philanthropist!
  • Flexibility: the 80% allowance for living expenses permits enjoyment of life’s pleasures without feeling financially restrained.
  • Great For Low Incomes: having 80% of your income to spend on your living expenses is great if your salary isn’t very high, but you still want to save and give to charity. The 10 10 80 budget allows you to still be able to afford paying your bills, while also saving and donating. As your income increases, you might decide to change those proportions and save or donate a higher proportion fo your earnings, but until then, it really does set you up for success.


  • Rigid Allocation: some individuals might find it challenging to track and allocate their expenses within the 10-10-80 categories, especially if they don’t have a proper method and spreadsheet for monitoring. My suggestion is to not be super rigid with it: those percentages don’t need to be absolutely precise every single month. Aim to get as close to them as possible, but don’t put yourself down if you don’t always manage to set aside 10% of your income to charitable gifts, for example. Life always has a way of complicating our plans! But the overall goal here isn’t to stick exactly to those ratios every single month. What we want is a framework and some achievable goals to measure and adjust to. It will teach you financial discipline and the value of every single penny you spend. 
  • Lack of Specificity: it may not provide the granularity required for those with intricate financial goals or substantial debt, which is why it’s ideal for beginners with relatively straightforward financial setups. It also doesn’t tell you how to spend that 80% of lifestyle costs: you will have to identify on your own how much your “needs are” every month (eg: rent, groceries, utilities, minimum debt repayments), and how much you have left for your “wants” (eg: entertainment, eating out, shopping, etc).
  • Low Savings Rate: this is a bit of a personal point, but I do think that saving 10% every month should be your baseline goal, and you should try to save more than that to be able to accumulate enough savings for your emergency funds and your future. That being said, it’s a fantastic starting point if you’ve never got into the habit of saving!
  • Calls for Discipline: sticking to the 10 10 80 rule necessitates a certain degree of discipline and self-control to prevent overspending in the lifestyle category. You must be willing to budget at the beginning of the month, track along the way, and observe your actual expenditure at the end of the month to identify any downfalls and adjust the following month’s budget.

Who Stands to Benefit Most from the 10 10 80 Budget?

The 10 10 80 budget can be particularly advantageous for:

Budgeting Beginners

Those new to the world of budgeting can readily grasp and implement this uncomplicated method.

Those Aiming to Start Prioritising Saving Every Month

Individuals aiming to prioritise savings and construct a robust financial safety net, no matter how small their income may be.

Consistent Income Earners

People with a predictable monthly income can effortlessly compute their allocations.


Individuals seeking a budget that permits them to prioritise charitable giving and selfless causes while remaining financially responsible.

Lower Income Peeps

I really like this budget because it takes into account that you might have to spend a considerable chunk of your income on just living your life. It doesn’t set overly ambitious savings and donations goals, making it easier for lower-income folks to set some money aside every month for their future and charitable giving.

My 10 10 80 budget template

I have worked on a 10 10 80 budget template just for you! If you want a beautiful template that will help you set aside money for your savings and charitable giving, this is exactly what you need.

10 10 80 budget

With this Google Sheet template, you can set yout 10 108- budget plan, set your spending goals, and track everything by category.

10 10 80 principle

It displays beautiful charts that measure how much you’re actually spending by category, and the summary shows you how well you did against your goals.

10 10 80 plan

My template comes with an instruction manual that explains exactly what to do to build and use your 10 10 80 budget:

10/10/80 budget plan

In conclusion, the 10 10 80 budget , aka the 10 10 80 plan, stands as an approachable and straightforward method for managing your finances while also giving back. It encourages both saving for the future and donating to the causes that speak to you the most and align with your values.

A key concept about any kind of budgeting work is that it’s not about deprivation, but about crafting financial harmony and being intentional and aligned with the way you spend your money and financial resources. With discipline and consistent tracking, you can employ this budget to attain your financial goals and experience tranquillity in your financial journey.

Take command of your financial affairs today, embark on the path towards financial stability and prosperity with the 10 10 80 plan!

About the author : Susie Italiano

10 10 80 budget
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