Your Budget Planner Guide

What is a Budget Planner? 

How budgeting planning can look, varies for different people. Some may use it to prioritize savings and control their spending while others may use it for irregular income or simply to just get back on track after a setback.  

Here at BDCU money tips we will be discussing the budgeting technique ‘The 50/30/20 rule’ which includes placing your money into 3 different categories based on your post-tax income. 

Budget Planner

The 50/30/20 rule: 3 Categories 

50% — Needs

Needs are considered necessary expenses for basic well-being and survival. 

Common “Needs” include:  

  • Food 
  • Transport 
  • Housing 
  • Utilities 
  • Healthcare 
  • Childcare  

These needs can vary as everyone’s necessities and personal interpretations are different. Consider cutting down on your necessary expenses by asking yourself – Could I save money by shopping at a different supermarket? Can I cut down fuel costs by driving less? 

30% — Wants 

Your wants are more personalised and considered nonessential.  

Common “Wants” include: 

  • Holidays 
  • Gym memberships 
  • Streaming services & other entertainment 
  • Electronics 
  • Furniture 
  • Beauty appointments 
  • Eating out 
  • Other hobbies 

20% — Savings and Debt Repayment 

Savings and debt repayments will depend on your personal circumstances. 

Common “Savings” include:

  • Emergency funds 
  • Retirement contributions 
  • Homeownership 
  • Travel 
  • Wedding 
  • Cars 

If you’re debt-free or your debt is a low-interest mortgage, consider devoting 20% of your net income to savings. 

If you have a credit card balance or student loans, you need to consider how you will split your debt repayments and savings accordingly. As It is important to priorities high-interest debt to gain financial stability.  

Download A Monthly Budget Planner Here 

Information suggested and shared by Restore College Bradford 

What is BDCU doing to help? 

  • Keeping your savings habit – though you may want to cut down your savings, reducing it down and keeping it going will help you build financial resilience for a rainy day.  
  • Our consolidation loan may help by bringing together your existing credit cards, overdrafts, and non-BDCU personal loans into a new cheaper loan. (Subject to credit and affordability checks) 
  • We have other discount loans so keep an eye out on our special offers page
  • Read our money tips for more useful information.