The 70-20-10 rule, a simple yet powerful budgeting principle that can transform your financial life.First up, we have the 70%. This portion of your income is dedicated to covering your essential expenses or needs. Rent or mortgage payments, groceries, utilities, transportation – these are the non-negotiables that keep you afloat.Next, we have the 20%. This chunk is all about securing your financial future through savings and investing. Whether it's building an emergency fund, contributing to your retirement accounts, or investing in stocks or real estate, this portion is crucial for long-term stability and growth.And finally, we have the 10%. This is your discretionary spending for wants or non-essential expenses. Dining out, shopping for clothes, entertainment – these are the indulgences that bring joy to life.By allocating your income according to the 70-20-10 rule, you ensure that you cover your needs, prioritize saving and investing for the future, and still have room to enjoy life in the present.Remember, personal finance is just that – personal. Adjust the rule to fit your own financial situation and goals. Find a balance that works for you and watch your financial health thrive.