Saving habits · Savings guide
How to Make a Simple Budget That Sticks
A budget is a plan for your money before the month starts. The best method is the one simple enough that you keep using it.
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Start with one month of real spending
Before setting limits, see where money actually goes. Export or read a month of bank and card statements and sort spending into a few groups: housing, bills, food, transport, everything else.
Pick a method
- 50/30/20: roughly half of take-home pay for needs, a smaller share for wants, and the rest for savings and debt. Adjust the split to your situation.
- Envelope or category budget: set an amount for each category and stop when it runs out.
- Pay yourself first: move savings out on payday and spend the rest freely.
Keep it going
- Review it for ten minutes once a week, not once a month.
- Plan for irregular costs (gifts, car service, annual subscriptions) by setting aside a little each month.
- When you overspend in one category, move money from another instead of giving up on the budget.
Official sources
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