Budgeting hacks and tips

8 min read

So you’ve created your shiny new budget, and you’ve been plugging away at it, but for some reason, something just doesn’t feel right for you. 

This isn’t a reason to give up – absolutely not!

There are so many different budgeting methods out there that you’re guaranteed to find the one that’s right for you. 

You can find a way that feels easy to do and easy to stick to. 

Here are a few: 

  1. The zero-based budgeting way 

Every pound you use has a purpose. With this method you allocate all of your money towards something, whether that’s your bills or savings. At the end of the month, your income minus your expenses equals zero.

  1. The 80/20 way

Just like it sounds, you keep your spending to 80% of your income and you save 20%.

This straightforward method is very simple and works as long as you are prioritising saving first. 

  1. The cash envelope way

This method is very hands on as you’re dealing with cold hard cash. You label different envelopes with your spending categories such as food and bills. You then put the cash that you need in each envelope for the month. 

Once this money’s been spent, that’s it for the month. There are various apps that use something similar. Monzo, for example, has ‘pots’ for money.

Some people feel that this works for them as they find they spend less if they are handling actual bills and coins rather than a debit or credit card.

  1. The 50/30/20 way

This is similar to the 80/20 method in that you still save 20% of your income but the remaining 80% is split into ‘wants’ and ‘needs’. So 50% goes towards ‘needs’ – that’s your fixed spending such as your mortgage. And 30% goes towards your ‘wants’, the nice to haves like eating out and shopping.