If you are trying to save money and need some extra tips then the 50-30-20 rule could be super helpful to create a budget.

With this rule you will be splitting your income up and assigning each pot of money to a selected category.

This rule will work best if you have a separate savings account so you can keep that away from your spending money and visualise what you have left.

50 - Needs

50% of your income will be spent on your needs and necessities throughout the month.

This includes rent, house bills, car payments, grocery shopping, childcare and anything else that you absolutely need to pay. It would be best to be strict about this section and only put things you couldn’t live without in here, don’t be tempted to pay for any hobbies from this pot.

30 – Wants

30% of you income will be spent on your wants.

This would include any hobbies you have, gym membership or streaming subscriptions. Any days out or social events should also be paid from this pot of money. Also included would be any shopping that is not necessary such as a new dress or watch.

This will help you budget how much you can spend on your wants throughout the month and not be tempted to over spend. This would help you if you have a habit of impulse shopping. You will have a visual of how much you can spend and what will have to wait until next month.

20 – Savings

20% of you income should go into a savings account or an ISA.

Trying to save whilst on a small income or when you have other obligations can be challenging. Using this rule will help you put away a small amount each month and by budgeting like this you will know it can be done.


If you need to change the percentages to fit your situation, say if you have a long list of needs then increase this to 60% and only put 10% in you savings. This still allows you to save whilst not being super low on money at the end of the month.

For example...

If your monthly income is £1,700 and you followed the 50-30-20 rule then you would have,

£850 to spend on your needs list, £510 to spend on your wants and then £340 to put into your savings each month.