Simple Budgeting Rule Could Help You Save Hundreds In 2023

Experts typically recommend a person pay off expensive debts first, and then clear all debts.

The 20 percent of income could go towards this goal and helping a person become debt-free.

Once this is achieved, this proportion of income could be put aside into a high interest savings account, or into one’s pension for later down the line.

The 50/30/20 rule is designed to help people split their priorities and manage money in an easy-to-follow way.

For example, if monthly income was £1,500 after tax, then a person might spend:

• £750 on their needs
• £450 on their wants
• £300 on savings or debts.