My monthly budget doesn’t need to be a complex 20-page Excel spreadsheet that only a mathematician can decipher. Yes, precision can be beneficial, but it doesn’t have to be that complicated. I’ve adopted the easy 10-10-80 system. I begin by calculating my monthly net income, which is what hits my bank account after taxes, insurance, and deductibles. From that amount, I allocate 10% to save and invest, another 10% to pay down debt, and the remaining 80% covers my bills and lets me live my life. The rule is simple: I must live within my means, ensuring I don’t spend more than 80%.

Moreover, my wife and I also follow the 10-10-10-70 strategy. We take 10% for savings and investments, 10% for debt reduction, and another 10% for charitable giving. The remaining 70% is for our regular expenses and having fun. The beauty of this system is its simplicity and proven effectiveness in achieving financial well-being. By following these strategies, I’ve found a way to manage my finances with ease, reduce stress, and secure my financial future, all while ensuring my present needs are met. It’s a tool that has improved my life and brought financial happiness.