Savvy saver explains how the 50/30/20 rule and how it helps you save
A savvy saver has revealed the secret to saving money every month.
Money blogger Bola Sol shared her 50/30/20 rule – the key to saving every month and having enough to treat yourself to brunch.
In a post on social media site TikTok, the saver, known as @bolasol, explained that the key to saving each month is making a clear-cut budget.
She said: “People always ask me – what is the best way to split up my money.
“Listen, you can use the 50/30/20 rule. That’s needs, wants and savings. Make it clear cut.
“50 per cent is for all of your needs – all of your bills.
“30 per cent is on your wants. You’ve got hobbies, you want to go to dinner, you want to go shopping, you want to go for brunch. You sure can.
“20 per cent is for savings.”
It might sound like simple advice, but Bola thinks this small change can help you form healthy money habits.
Bola, who wants to make talking about money less of a taboo, also shares some money-saving tips on her Instagram page, @bola_sol.
Here we explain more about her tips:
Saving is a marathon, not a sprint
One of Bola's top tips is not to rush your saving.
You might have an idea of how much should be in your savings account, but it's no good putting it in there and leaving yourself with nothing in the 'fun fund.'
You also have to enjoy the money you've worked hard to earn.
Stay strong during the sales
Phrases like 'sale,' 'final offer' and 'special offer' can make us act on impulse and buy things we don't really want or need.
There are always going to be special offers, and you don't need to take advantage of them all.
Talk to someone about your finances, whether they're good or bad.
This will help you assess what's a necessary spend, and what can wait till next month.
How to make a budget
There isn't a wrong or right way to make a budget.
It's all about managing your money so that you can pay your bills, afford luxuries that you want and save money.
Some people find it helpful to set a goal, such as saving for a house or a holiday.
While others find it more useful to save with a monetary figure in mind.
Before you start, do your research about methods that might work for you.
You want to work out all of your income and expenses and then divide up your leftover cash into either savings or spending, depending on what you can afford.
MoneySavingExpert has it's own free budget planner spreadsheet which may be useful to use.
If you're in debt and need help then you should speak to a charity like Stephchange, National Debtline or Citizens Advice.
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