There are many different types of budgeting one of which includes the 20-30-50 technique.
The 20-30-50 technique means you are managing and dividing your monthly pay into 3 sections.
50% - Needs: 50% of your wages each month should go to your needs which is your rent, bills, travel, and food expenses.
30% - Wants: You can spend 20% of your wages on the things you may want including new clothes, subscriptions, gym memberships, nights out etc.
20% - Savings: This is where the importance starts – by sticking to this rule each month 20% of your wages can go into your savings accounts.
So, to put this into perspective, if you are earning £1500 a month, £750 is you for your needs, £450 is for your wants and £300 will go into your savings – That is £3,600 you can save just from your wages alone in a year.
We can guide you into other budgeting techniques if this one isn’t for you!
START HERE to find out your budgeting calculations.