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Nationwide Recommends 50-30-20 Budgeting Rule in Online Guidance

The building society urges households to tailor the split, starting with a clear view of take-home income.

Overview

  • Nationwide’s guide outlines allocating income to 50% musts, 30% wants, and 20% savings or debt repayments.
  • Users are told to calculate net income, including wages, benefits, dividends and other sources, with self-employed people using an average month.
  • The advice calls for a full expense list, covering bills, subscriptions, rent or mortgage payments, plus impulse or social spending.
  • Tracking can be done with planners, apps, spreadsheets or simple pen and paper to monitor income and outgoings.
  • Nationwide stresses the split is only a template to adjust when circumstances change, with further budgeting tips available from most banks.