No matter how hard we try, it can be tough to make our monthly wage stretch.
With bills, groceries and the daily essentials that keep us ticking over, it’s astonishing how swiftly our cash can disappear. Yet, a clever budgeter has shared her trick for managing money while still putting some aside for savings.
Milly, who shares tips under the handle budgetwithmilly on TikTok, revealed she employs a “special budgeting technique” to ensure her £2,000-a-month income is used effectively. She refers to this method as the “70/20/10” budget rule, which she finds incredibly effective. It’s all about memorising the ratios to keep track of your spending.
In her video, Milly explained: “So you want to put 70%, which is £1,400, towards your needs for like rent, food and utilities. I use this cash binder to track my spending, as seeing and holding the money makes me more responsible spending.”
Then, she advises allocating 20% to savings, for which she utilises a savings booklet to avoid tapping into her bank account too often. She believes this also helps monitor saving milestones. Milly added: “Lastly you want to put 10% towards your wants – like dining out with your friends and partying with your family.”
The video quickly garnered thousands of likes after being posted. However, a couple of eagle-eyed viewers noted that she made an error in calculating 10% of her budget. Others have surmised that Milly couldn’t possibly reside in London, where rents soar well over £1,000 monthly.
One user commented: “This is a great way to learn how to budget if you’ve been struggling.” Another joined the conversation, stating: “Fab if you get £2,000 a month.”
Meanwhile, one more said: “Why is everyone mentioning her rent? My rent is £480 a month. Obviously places like London are going to be more expensive. Don’t live there if you can’t afford it. Simples.”