What is the 70 20 10 Rule of Spending Money?

As a travel expert with over 40 years of experience, I understand firsthand the importance of budgeting while traveling. Knowing how to make the most of your hard-earned money can make all the difference between an unforgettable journey and a forgotten one. One of the best ways to manage your travel funds is to follow the 70 20 10 rule of spending money.

What is the 70 20 10 Rule?

The 70 20 10 rule is a simple yet effective approach to budgeting for travel. This rule states that you should spend 70% of your travel budget on the essentials, 20% for experiences, and 10% for fun and souvenirs. This ensures that you have enough money to cover your travel costs, while still leaving room for memorable experiences and souvenirs.

Tips for Making the Most of Your Travel Budget Using the 70 20 10 Rule

Create a budget: Before you start planning your trip, it’s important to create a budget. Estimate the total amount you have to spend and allocate 70%, 20%, and 10% towards the essential costs, experiences, and souvenirs respectively.
Prioritize your spending: When it comes to travel, some costs are unavoidable, such as accommodation and transportation. Make sure to prioritize your spending and allocate the bulk of your budget to the essentials.
Look for deals: Booking your flights and accommodations in advance can help you save money. Look for deals, such as last-minute discounts and seasonal promotions, to help you keep your budget under control.
Find free activities: There are plenty of free activities to enjoy while traveling. Instead of spending money on expensive experiences, do your research and look for free or inexpensive things to do in the area.

“The 70-20-10 rule of money helps you break down your spending into three categories — needs, wants and savings. By implementing this rule, you can ensure that your high-priority financial needs are taken care of first.”

As a travel expert with over 40 years of experience, I have seen first-hand how following the 70 20 10 rule can help you make the most out of your travels. By setting a budget and prioritizing your spending, you can ensure that you have enough money for the essentials, while still leaving room for experiences and souvenirs. Do your research and look for deals to help you stick to your budget and make your travels even more memorable.

FAQs

What is the 70 20 10 rule? The 70 20 10 rule is a simple yet effective approach to budgeting for travel. This rule states that you should spend 70% of your travel budget on the essentials, 20% for experiences, and 10% for fun and souvenirs.
What are the essentials for travel? The essentials for travel vary from person to person, but generally include accommodation, transportation, food and drinks, and other necessary items, such as toiletries and travel insurance.
How can I stick to my budget? Booking your flights and accommodations in advance can help you save money. Look for deals, such as last-minute discounts and seasonal promotions, and do your research to find free or inexpensive activities in the area.

By following the 70 20 10 rule of spending money, you can make the most out of your travels, while still sticking to your budget. Start planning your next trip today and make sure you follow the 70 20 10 rule to make the most out of your hard-earned money. Download my free travel checklist and packing guide now to get started!