Build a simple monthly budget

A budget is a plan for your money, made before the month starts. The 50/30/20 method is an easy first plan.

Try it in three steps

1. Write down your monthly income after tax.
2. Split it roughly: 50% for needs (rent, food, bills, transport), 30% for wants, and 20% for savings and debt payments.
3. Look at last month's spending and adjust the numbers to match your real life.

If the numbers do not fit

Needs often take more than half of an income, especially where rent is high. That is common, not a failure. Keep the 20% as a goal and start with whatever you can save, even a small amount.

Keep it going

• Check your spending once a week for five minutes.
• Use the same categories every month so you can compare.
• Review the plan whenever your income or rent changes.