The 70/30 Rule vs the 50/30/20 Rule: Which Budgeting Style Builds Wealth Faster?
If you’ve ever typed “how to budget” into Google, chances are the 50/30/20 rule was the first thing that popped up. It’s been a go-to budgeting formula for years — and for good reason: it’s simple, practical, and doesn’t make you cut up your brunch card.
But let’s be real — simple doesn’t always mean effective. And if your goal isn’t just to “get by,” but to actually build wealth, you might want to meet the 50/30/20 rule’s cool, younger cousin: the 70/30 rule.
At Obiemoney, we believe budgeting shouldn’t just be about surviving. It should help you get ahead. That’s where the 70/30 approach comes in — it’s less about slicing your lifestyle into neat little categories and more about making smarter, faster money moves that fit your goals.
So what’s the difference between these two budgeting styles? Let’s break it down.
First up: What is the 50/30/20 Rule?
The 50/30/20 rule is a classic budgeting formula that splits your after-tax income into three categories:
50% Needs – rent, groceries, bills, transport
30% Wants – dining out, Netflix, holidays, your fourth pair of sneakers
20% Savings & Debt – emergency fund, extra debt payments, investing
It’s easy to follow, flexible enough for most people, and a great starting point if you’ve never budgeted before. But it can also be a bit... meh when it comes to long-term wealth building. Why? Because it dedicates the smallest slice of your income to the thing that actually builds your future: saving and investing.
Now meet: The 70/30 Rule by Obiemoney
We flipped the script.
The 70/30 rule keeps things simple — but with an intentional shift in priorities. Here’s how it works:
70% of your income is used for all your spending — both needs and wants.
30% is set aside to grow wealth — saving, investing, building your financial safety net, and funding your future goals.
It’s cleaner. Simpler. And laser-focused on the thing that most budgeting advice forgets: your future is going to need money.
No rigid categories. No mental gymnastics. Just two buckets: spend smartly and grow intentionally.
So which rule is better?
It depends on your goal.
If you want a comfortable budgeting plan that keeps lifestyle and savings in balance, 50/30/20 is a solid pick.
But if you're serious about building wealth, paying yourself first, and shifting into growth mode — the 70/30 rule will take you further, faster.
And at Obiemoney, we’re all about helping you do just that.
Final Thought
Money isn’t just about making it — it’s about keeping it, growing it, and using it to design a life that feels good now and later.
So whether you’re 50/30/20 curious or ready to jump into the 70/30 mindset, Obiemoney helps you budget without the burnout — and build real wealth without the jargon.
Ready to try the 70/30 rule for yourself?
👉 Take the Obiemoney Money Health Check and get your personalised plan in under 5 minutes. Signup now.