Household Budget Planner
Enter your monthly income and expenses. See a 50/30/20 analysis and find out if you have a surplus or deficit.
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Needs (essentials)
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Savings & debt
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Wants (lifestyle)
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Frequently asked questions
What is the 50/30/20 rule?▾
The 50/30/20 rule suggests spending 50% of after-tax income on needs (housing, bills, food), 30% on wants (entertainment, dining, subscriptions), and 20% on savings and debt repayment. It is a guideline, not a strict rule.
Is the 50/30/20 rule realistic in the UK?▾
In high-cost areas like London, needs may take 60-70% of income. Adjust the ratios to your situation. Even 50/30/20 is aspirational for many — the key is having a plan and tracking spending.
What counts as a need vs a want?▾
Needs are essentials: housing, utilities, food, transport to work, insurance, minimum debt payments. Wants are nice-to-haves: eating out, streaming services, new clothes, holidays. Some items blur the line — use your judgment.
How much should I save each month?▾
Aim for at least 20% of after-tax income if possible. Start with building a 3-6 month emergency fund, then focus on pension contributions and other goals. Any amount saved consistently is better than nothing.
Should I budget weekly or monthly?▾
Monthly budgeting works best for most people since bills are monthly. If you are paid weekly, multiply by 4.33 to get a monthly figure. Some people find weekly cash budgets for variable spending (food, entertainment) helpful.
What if my expenses exceed my income?▾
Look for expenses to cut, starting with wants. Can you reduce subscriptions, switch energy providers, or find cheaper insurance? If essential costs exceed income, seek free advice from Citizens Advice or StepChange.
Should I include annual costs?▾
Yes — divide annual costs (car insurance, MOT, Christmas, holidays) by 12 and include the monthly figure. This avoids surprise large expenses and smooths your budget over the year.
How do I stick to a budget?▾
Use separate accounts for bills and spending money. Set up standing orders on payday. Track spending with a budgeting app. Review monthly. The key is making it automatic so willpower is not required.
What about irregular income?▾
Budget based on your lowest expected monthly income. In good months, put the extra into savings. Build a larger emergency fund (6+ months) to cover shortfalls in lean months.
Should I budget before or after pension?▾
Budget using your take-home pay after pension, tax, and NI deductions. Your pension is already being saved automatically. The 20% savings target in 50/30/20 is in addition to workplace pension.