COMMENT: Can Portsmouth households really follow the 70/20/10 budget rule?
Is it a real challenge?
As households continue to navigate changes in the cost of living, a popular budgeting formula is raising a simple question: does the 70/20/10 rule still work in real life?
The latest Office for National Statistics (ONS) data provides a timely picture of household finances across Great Britain. Its July 2026 household-finances dataset, covering 1 to 26 July, looks at people's experiences of changes in their cost of living and household finances.
The national picture is relevant to households in Portsmouth, where everyday expenses can determine how much money is left for savings, investments and discretionary spending.
The 70/20/10 rule is intended to make budgeting straightforward. Under the approach, 70% of income is allocated to everyday living expenses, 20% goes towards savings or debt repayment, and 10% is reserved for discretionary spending or other financial goals.
But new research from CouponFollow suggests that the reality of household budgets can look very different.
The study surveyed 1,006 Americans and found that only 13% actually follow the 70/20/10 rule. The average respondent allocated 66% of their income to essentials, 16% to investing and 18% to discretionary spending. Almost half, 48%, said rising grocery and household costs had caused them to reduce or stop investing.
The findings suggest that the problem may not necessarily be poor budgeting. Instead, the challenge could be that fixed budgeting percentages do not always reflect the financial pressures households are facing.
What this reflects for Portsmouth households
Essential expenses can dominate household budgets. Food, energy, transport, housing and other bills can take priority before money can be put aside.
The 20% savings target may not be realistic for everyone. Households with higher essential costs may have considerably less available to save.
Rising costs can push savings further down the priority list. When everyday expenses increase, households may need to reduce discretionary spending or pause investment plans.
One rule cannot fit every household. Someone living alone, a family with children and a household paying a mortgage may all require very different budgets.
A flexible approach may be more practical. The 70/20/10 formula can provide a useful starting point, but the percentages can be adjusted according to individual circumstances.
Realistic goals can be more sustainable. Saving a smaller amount consistently may be more achievable than setting an ambitious target that cannot be maintained.
The aim should be financial resilience, not perfection. A successful budget should help households cover their essentials while gradually creating room for savings and financial goals.
For households in Portsmout, the research offers a useful reminder that budgeting does not have to follow a perfect formula.
The 70/20/10 rule can still provide a framework for thinking about where money goes, but households may need to adjust the percentages according to their own income, expenses and priorities.
With the ONS continuing to monitor changes in household finances across Great Britain, and CouponFollow's US research showing how few people actually follow the 70/20/10 formula, the evidence suggests that flexibility may be just as important as the budgeting rule itself.
For households facing higher essential costs, the most useful budget may ultimately be the one they can realistically stick to.