The 60 Percent Budgeting Solution

Richard Jenkins, former MSN Money’s editor in chief created the 60% budgeting system. In this system Richard suggest that 60% of the household gross income is spent on fixed expenses such as federal, state, and Social Security taxes, bills, and standard living expenses such as food, clothing, and house payment. The other 40% should be allocated towards savings, retirement, miscellaneous expenses, and fun money such as entertainment and vacations.

If you have a high amount of extra debt such as credit cards, Jenkins recommends diverting 20% of your funds allocated for savings and retirement towards paying off your excess debt. Once the debt is paid off, the funds are redirected back to where they was originally allocated.

Jenkins feels that you should not have to track each individual expense if you follow his 60% budget solution.

Personally I feel that this method will work fine for some people, however if you are already in debt, you should eliminate your debt by following the debt snowball method first. Once you have eliminated your debt, feel free to give this a try.


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