Do you really know? Can this budgeting method help us save better?
May 13, 2025
Explore the struggle of saving amid rising living costs and discover the 50-30-20 budgeting method. This popular rule helps allocate 50% of income for essentials, while offering a path to manage desires and savings effectively. Learn how to apply these strategies and personalize the approach if your needs exceed the norm. Delve into the statistics of overdraft usage and find tips to improve your budgeting game!
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Britons' Heavy Overdraft Use
- Many Britons rely on overdrafts, with £3.5 billion borrowed as of mid-2022.
- About 25% to 30% of people use overdrafts briefly before payday, reflecting financial strain.
Understand the 50-30-20 Rule
- The 50-30-20 rule divides income into needs (50%), wants (30%), and savings (20%).
- Allocating funds this way simplifies budgeting and improves money management.
Apply and Adjust Your Budget
- Use a spreadsheet or app to track income and expenses according to the 50-30-20 rule.
- Cut unnecessary costs like unused gym memberships and prefer home gatherings to reduce spending.
