The 60 Percent Solution Budget

The 60 Percent Solution Budget

Budgeting doesn't have to be complicated. Sometimes the simplest approaches stick because they're actually doable. The 60 Percent Solution is one of those approaches that trades complexity for sustainability.

The concept comes from former MSN Money editor Richard Jenkins, who spent years trying different budgeting methods before landing on this one. His insight? Most people fail at budgeting because they try to track every dollar. The 60 Percent Solution takes a different route.

How It Works

The math is straightforward: allocate 60% of your gross income to "committed expenses." These are the bills and necessities that show up every month whether you like it or not. Think housing, utilities, groceries, insurance, transportation, and minimum debt payments.

The remaining 40% gets split four ways, each bucket receiving 10%:

Why This Works When Other Budgets Fail

The 60 Percent Solution works because it acknowledges reality. Most of our money goes to fixed costs anyway. By focusing on keeping committed expenses under 60%, you create room for everything else without tracking every coffee purchase.

If your committed expenses exceed 60%, that's the signal to make changes. Maybe housing costs are too high, or car payments are eating into your flexibility. The percentage becomes a diagnostic tool, not just a budget line.

Making It Work for You

Start by listing everything that counts as committed: mortgage or rent, utilities, groceries, insurance, transportation, subscriptions, minimum debt payments. Add it up and divide by your gross income. Above 60%? Time to scrutinize those fixed costs.

The beauty is in the simplicity. You're not categorizing every expense into fifteen different buckets. You're asking one question: is this committed or not? Everything else handles itself through the four 10% allocations.