Save faster with the 33-33-33 budgeting rule

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Want to get a grip on your money without complicated schemes? Then the 33-33-33 budget rule might be just what you're looking for. This saving method splits your income into three equal parts: one third for fixed expenses, one third for discretionary spending, and one third for saving. No tricky percentages to remember, just a clear three-way division you can apply right away.

In this blog, you'll learn how the 33-33-33 budget rule works, how much savings you actually need, and which smart money tips can help you reach your savings goal faster. Ready to make your finances clear, Lifestyle Habits Explorer? Keep reading.

What is the 33-33-33 budget rule?

The 33-33-33 budget rule is a simple saving method to divide your net income. You split your monthly income into three roughly equal parts:

• For your fixed costs, you set aside 33% of your income: rent or mortgage, utilities, insurance, groceries, subscriptions, and other essential expenses.
• For discretionary spending, you also use 33%: eating out, clothing, hobbies, outings, vacations, and other fun expenses.
• For savings, you put aside the last 33%: your emergency fund, a savings goal, or (extra) debt repayment.

Are you familiar with the 50-30-20 budget rule? It divides your income into three unequal parts: 50% fixed costs, 30% discretionary spending, and 20% savings. The 33-33-33 rule is a simpler version: three equal parts, quick to calculate and easy to remember. Unsure which budget rule suits you best? Then also check out our blog 'The 50-30-20 Budget Rule' and compare both saving methods.

Why this saving method might work for you

Not every saving method suits every situation, and that also applies to the 33-33-33 budget rule. Still, this split has a few clear advantages. You calculate three equal parts like this. You automatically set aside a large portion for later, without having to give up on fun things.

Do you have relatively high fixed expenses? Then saving 33% might not be realistic, and that’s totally okay. Feel free to adjust the split to fit your situation, for example 45-35-20 or another ratio. The point is to be conscious with your money, not to hit a set percentage at all costs.

How much savings do I need? 

The Nibud (National Institute for Budget Information) advises saving at least 10% of your income regularly, as a basis for a healthy savings buffer. If you go for the 33-33-33 budgeting rule, 33% is well above this advice and you'll build a solid buffer more quickly for your savings goals and for unexpected costs, like a broken washing machine or a tax bill. 

What a realistic savings amount is for you depends on your situation. Do you have a savings goal for a vacation, studies, or a house? Then first calculate how much you need and over what period you want to save it. That way, you’ll know exactly what monthly savings amount fits your goal.

How to apply the 33-33-33 budget rule in practice

Want to get practical? Follow these steps:

1. Calculate your net income per month.
2. Divide this amount by three and note down the amounts for fixed costs, discretionary spending, and savings.
3. Open a separate savings account, apart from your current account.
4. Set up automatic savings: have the savings amount transferred immediately after your salary is paid.
5. Prevent transfers back to your current account by staying disciplined and not touching it.

Save faster with smart money tips

Want to save even faster within the 33-33-33 budget rule? These smart money tips can help you get started:

• Compare the interest rates of different savings accounts. A higher interest rate means your savings work harder for you.
• Set aside windfalls. Did you get a tax refund or some extra money? Put it straight into your savings account instead of your checking account.
• Review your subscriptions. Taking a critical look at your fixed expenses often quickly frees up extra space for your savings goal.

Getting Started with Your Own Budget Rule

The 33-33-33 budget rule is a simple way to bring structure to your finances without complicated schemes. Split your income into three parts, set up automatic savings, and gradually build your savings buffer. Small, conscious choices lead to lasting changes in how you handle money.

Want practical help to really get your finances in order?

• Discover the tools and products from Lifestyle Habits in the money management webshop category.
• Or check out all the money management blogs for more money tips.
• With 'Practical Money Tips: financial overview & (savings) tips' you get a complete overview to structure your spending and saving.
• Want to reach your savings goal in a fun way? Then check out 'Savings Coloring Pages: reach your savings goal in a fun way' and make saving visual and motivating.

Frequently asked questions about the 33-33-33 budgeting rule

Is the 33-33-33 budgeting rule suitable for everyone?

Not necessarily. For example, if you have relatively high fixed expenses, saving 33% is often not feasible. Adjust the allocation, for instance to 50-30-20, and build your savings buffer at a pace that fits your situation.

What if I don't manage to save 33% every month? 

That's okay. If you save 20% one month and 40% the next, it doesn't really matter, as long as you’re on average moving towards your savings goal. 

How much savings do I need as a buffer? 

A common rule of thumb is that a buffer of at least 3 to 6 months of fixed expenses can be enough to handle unexpected setbacks. Exactly how much you need depends on your living situation, family composition, and fixed costs. 

Can I combine the 33-33-33 rule with investing? 

Yes, you can. Some people choose to invest part of their savings once their buffer is in place. Investing carries risks, including losing your initial investment, so always make sure to do your own research first.

Lifestyle Habits

Lifestyle Habits helps you with practical, accessible digital products in the areas of nutrition, self-development, and simple money management - like courses, ebooks, and step-by-step plans to turn small, conscious lifestyle habits into lasting change.

This article is written by the founder of Lifestyle Habits, who holds university degrees (BSc in Business Economics and MSc in Strategic Management) and has 20+ years of work experience in the financial sector, including at a publicly listed international financial company. Lifestyle Habits works with reliable sources, complemented by years of practical experience and knowledge of finance – from budgeting and saving to investing, retirement, and creating a financial overview. Lifestyle Habits is an online platform for your personal finances to help you manage money smartly. Curious about who is behind Lifestyle Habits and what the brand stands for? Check out the About Lifestyle Habits webpage.

The content from Lifestyle Habits is only meant for general, educational, and informational purposes and is intended as inspiration. It doesn't provide personal financial advice or recommendations. Investing carries risks, including the loss of (part of) your investment. Past performance is no guarantee of future results. No rights can be derived from the content. If you have questions about your personal financial situation, it's always a good idea to consult a certified financial advisor. Always do your own research before making financial decisions.