Many people struggle with budgeting as they find it difficult to visualise what they should be spending and saving, as well as feeling like many budgeting methods are restrictive. If you want to continue living your life whilst also saving, then the 50-30-20 method might be for you.
The basic premise of the budget is that you are able to spend 50% of your after-tax income on essentials, 30% on ‘wants’ and 20% will go straight into your savings. Having that 30% free spending money is something that really helps people to stick to this budget whilst also making quite significant savings for the future. Best of all, it’s so simple to do. Here’s an introduction to this budgeting method to help you get started on saving for your future!
50% – Essentials
Before you get paid, you need to figure out exactly what your essential outgoings are. By essential, …