![]() But do not worry - this is probably the easiest category to cut back on. When you begin assessing your monthly outgoings, you might find that you’re spending a lot more than 30% of your income on these non-essentials wants. Subscriptions (for example Spotify, Netflix, or Amazon Prime).Eating out at restaurants or cafes, or ordering takeaways.Wants can vary, but may include things like: So for example, if you take home £1,800 each month, £540 should go towards this category. In line with the 50/30/20 rule, you should put aside 30% of your income (after tax) for your wants. ‘Wants’ can be classed as non-essential expenses - so things you like to spend your money on, but don’t actually need day-to-day. If you have an expensive phone contract, you might also want to consider switching to a cheaper plan. And if your insurance is up for renewal soon, you could shop around or use a comparison website to find a better deal. ![]() For example, instead of going to one supermarket to do a food shop, you could visit a few supermarkets to make the most of the various offers available. If you find that your needs are costing more than 50% of your income, there may be ways to bring down these expenses. Minimum repayments for credit cards or loans.Insurance (for example, home insurance or car insurance).Household bills (for example electricity, gas, water, broadband, or Wi-Fi). ![]() So for example, if you take home £1,800 each month, £900 should go towards this category. In line with the 50/30/20 rule, you should put aside 50% of your income (after tax) for your needs. Ultimately, ‘needs’ can be classed as outgoings that you cannot avoid, or things that you’d struggle to live without. You’ll just need to figure out which of your outgoings are classed as ‘needs’ and ‘wants’, and decide where you want to put your savings. It means you should hopefully be able to keep track of what you’re spending, and stick to your budget. One major benefit of the 50/30/20 rule is that your outgoings can be grouped into three simple categories. How to use the 50/30/20 rule to budget your money ![]()
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