About the Budget Planner
A budget is a plan for your money. It helps you understand your income, track where your money goes each month, and identify areas where you can save. This planner covers the most common UK household categories to give you a clear picture of your finances.
The 50/30/20 rule
- 50% Needs: Housing, bills, groceries, transport essential costs.
- 30% Wants: Dining out, entertainment, subscriptions, hobbies.
- 20% Savings & Debt: Emergency fund, investments, loan payments above minimum.
Tips for sticking to your budget
- Review your budget at the start of each month and adjust as needed.
- Use a separate savings account to prevent spending what you intend to save.
- Track your spending with a simple spreadsheet or app.
- Look for subscriptions you no longer use and cancel them.
Frequently asked questions
How much should I save each month?
Aim for at least 20% of your income, including pension contributions. If that's not possible, start with a smaller percentage and increase over time.
What is an emergency fund?
An emergency fund is 3-6 months of essential expenses saved in an easy-access account to cover unexpected events like job loss or major repairs.
Should I pay off debt or save first?
Build a small emergency fund first (1,000-2,000), then prioritise high-interest debt. Once that is under control, focus on building your full emergency fund and long-term savings.