Last updated: September 30, 2025
Introduction
High earners often bounce between two extremes: splurge and feel guilty, or save hard and feel deprived. The antidote isn’t a stricter budget, it’s a smarter system that aligns money with your values so you can enjoy today and build tomorrow.
Watch: Enjoy Life Now Without Screwing Over Your Future
The 70/20/10 Rule
- 70% for living — lifestyle, experiences, everyday needs.
- 20% for building — savings, investing, and future wealth.
- 10% for giving or growth — generosity, education, or passion projects.
This values-driven split keeps money serving your life, not the other way around.
Five Strategies to Start Living Well Today Without Sacrificing Tomorrow
1) Set a Baseline
You can’t optimize what you don’t track. Map income, expenses, and your current savings rate. Choose a framework you’ll actually stick to:
- 50/30/20: simple, flexible guardrails.
- Zero-based budgeting: every dollar has a job, maximum intentionality.
2) Automate Your Future First
Don’t save what’s left after spending, spend what’s left after saving. Auto-fund your 401(k), IRA/Roth, HSA, brokerage, and emergency fund on payday. Treat the “20” like a non-negotiable bill.
3) Use Value-Based Spending
Ask of each purchase: does this drain me or fuel me? Five takeout dinners from fatigue = low value. A weekend reset with your spouse after a brutal quarter = high value. Spend extravagantly on what aligns with your values, cut ruthlessly on what doesn’t.
4) Build Guardrails, Not Restrictions
Freedom comes from structure. Pre-plan big experiences so you can say “yes” without the guilt:
- Create dedicated travel/hobby funds.
- Set annual experience targets (not just “stuff” targets).
- Use soft caps to prevent lifestyle creep.
5) Visualize Your Future Self
Where do you live? What does your day look like? How flexible are you? Let that future version evaluate your current choices. When present actions serve future goals, money becomes a tool, not a source of stress.
Key Takeaways
- Alignment beats extremes: the 70/20/10 rule balances joy now and security later.
- Automate the “20” first: build wealth by default, not willpower.
- Spend by values: say “yes” to what fuels you; cut the rest.
- Use guardrails: plan splurges so they’re guilt-free and sustainable.
FAQs
How do I adjust 70/20/10 if my income is lumpy (bonuses/RSUs)?
Automate the “20” from base pay, then route a fixed percentage of each bonus/equity event to building and pre-planned experiences. That keeps lifestyle steady while wealth compounds.
What goes in the 10% “giving or growth” bucket?
Generosity, education, and passion projects, things that expand capability or impact. Think courses, certifications, charitable giving, or funding a creative pursuit.
Is 70/20/10 right for every household?
It’s a starting point. If you’re catching up, shift to 65/25/10 for a season. If you’re ahead, 75/15/10 can work. The best framework is the one you can live with consistently.
How do I avoid lifestyle creep?
Pre-commit your raises: 50% to building, 50% to living. You’ll feel the upgrade and accelerate your future.
What if emergencies derail my plan?
Protect the “20” by keeping a funded emergency reserve. When shocks happen, you tap the reserve, not your investment plan.