Budgeting isn’t about restricting yourself—it’s about directing your money with intention. A good budget is your financial roadmap, guiding you to your goals while avoiding unnecessary stress.
The 50/30/20 Rule
A simple but effective method:
- 50% for needs (housing, groceries, bills)
- 30% for wants (entertainment, dining out)
- 20% for savings and debt repayment
Choose Your Tools
- Apps like YNAB (You Need A Budget) and Snoop are popular in the UK.
- A basic Excel spreadsheet can work just as well.
Track Every Pound
It’s easy to lose track of spending, especially with contactless payments. Reviewing your monthly bank statement can be eye-opening.
Include Irregular Expenses
Don’t forget car maintenance, holiday spending, gifts, and annual subscriptions. Divide yearly costs by 12 and save monthly.
Stick With It
Budgeting is a habit. Revisit and revise your budget regularly to make sure it still reflects your goals and lifestyle.