Budget tips

Hi Everyone

I’m wondering if anyone knows about a rule of thumb on savings and if some live by it?.

I’m currently listening to a audio book on Warren buffetts tips on financial literacy and life(Really enjoying it, I’m amazed that I do alot of what they state automatically and never even knew it)

It states that you should try live by these figures below from your payslip:-

House bills = 30%
Travel to work no more than = 15%
Phone, broadband etc = 2%
Savings at least = 20%
Emergency fund = 5%

For me currently at the state I’m in right now my figures are:-

House bills = 29%(Energy is DD I use more than my spreadsheet so this is actully off so I need to sort how I use my energy)

Travel to work = 4%
Phone, broadband etc = 2.96% (slightly over)
Savings at least = 31.46%
Emergency Fund = 0%

So that’s gave me a knew little task today while working my factory job lol. I also done a search and didn’t really find anyrhing like this so if you care to share yous go a head :slight_smile: or if you have any further tips or tricks or of my above figures are wrong tell me.

Thanks people of the free world :stuck_out_tongue:

P. S I listened back and this budget is supposed to be for a new young person starting in the work force but he also states it’s a rough guide as people almost retiring etc would have a different budget than a young 17 year old etc.


My plan is to invest what is roughly 20% of my monthly income.

In reality some months I can afford that, and others, when I have extra bills, perhaps I cannot.

I am good with that, and flexible.

I know that even if I can’t save in a particular month I have a substantial sum going straight from my wages into my public service pension…and thats saving too :slightly_smiling_face:


20% on travel to work seems insanely high to me! That’s like saying every Monday you basically work for free.

I’m interested to know if anyone is paying 1/5 of their income just to get there?!

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That’s great man to be honest not all that above savings I stated goes directly to investing only 6.34% of that goes to investing then 12.69% to help to buy then 12.41% to a monthly saver top up.

Once the help to buy is complete in November this year and the monthly saver in October, I plan to direct all of it into investing for the foreseeable future.

At least you have goals though that at least points you in the right direction :slight_smile:

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I also to thought this was really high but then it’s an American narrator so maybe this is American travel times?. I’m not to sure about the UK and other countries I’m 20 miles a day to my work.

I can see how the figure may fly up if I used to travel to an old work doing almost 100 miles a day. (This doesn’t even include running costs of the vehicle, oil changes and such)

Also I forgot to add that it’s not 15% fuel etc. It’s no more than 15%


My fault the travel wqs actully no more than 15%, seems I was busy working got the numbers mixed up lol

Travel will vary wildly I’m sure.

I live in NI and even here (in a relative small country) some people pay hundreds a month for rail travel into Belfast from the surrounding smaller towns and villages.

That would be amplified in and around London and in larger countries abroad.

Luckily I live in Belfast and could walk to work if I decide to, but others have less choice, and much more expense.

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I lived in London for over 10 years and there is no way I ever hit 20% on travel (well maybe if you include holidays), let alone travel to work.

Now I live in a smaller more centralised city and it’s a fairly easy cycle. I’ve spent about £200 on bit repairs and servicing in 5 years. I’ve always made a vaguely conscious effort to live a reasonably cycle-able distance to work though. I apreciate that is harder for lots of people.

I’d estimate that I probably overshoot 2% on phone and internet etc though, which I wouldn’t have in London which has better network coverage so the cheaper options work just as well as the “premium” ones.

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50% of my take home pay is saved / invested, excluding pension contributions.

Share a mortgage with my partner and lucky to work from home with no travel costs.


I use this programme to manage my domestic budget:


It was very useful for me a few years ago as money was tight. I basically did something similar to the op - allocated the known bills (council tax, mortgage, utilities, life insurances etc.), set monthly budgets/limits for spends on food, clothing, entertainment etc., added monthly pots for car/house insurance and other annual expenses, and forward projected that 12 months or more ahead to see where the red figures appeared. This approach made a huge difference to my money management and helped me achieve quite a few financial goals.

I’m sure there are other money management programmes available, but the one above is free to use.


A couple of tips that really helped me when I was saving for a house deposit:

  1. Have a separate account for day-to-day spending and bills, investments etc.

  2. Avoid using cards. I used to withdraw £200 a month and divvy it up into £40 a week, so I wouldn’t touch the rest of my earnings.

However, I was pretty much living on Space Raiders and noodles at the time, which is not advisable.


Space Raiders I can live with. Pot Noodles…no :rofl:

Good tips :+1:

Saving/investing around 16% of take home pay.

Work from home 4 days a week so not much on travel costs but am paying off mortgage on my own and fixed rate is coming to an end later in the year.

Need to balance investing with overpaying the mortgage… :grimacing:


You’re what is called a super saver :slight_smile:

Cards are fine as long as you have restraint and willpower, buy stuff then repay it the same night or next night. That’s what I do anyways I never buy anything with my credit card unless I have money in the bank to pay for it.

That’s just me tho I always stayed away from credit cards and such as a teen as I knew what I was like, the horror story’s from others helped as well.

Now a days 35 years old have had that credit card since 2017 and have been fine so far, credit rating is near maxed out as well not that I need a loan etc currently but always handy.

You’re point one, I also do this I have 13 bank accounts currently which are all named so each month I get paid I open the spreadsheet up and I know what’s to get spread into each. Whatever is left in the spare account is the money I can use for that month on anything I want. Of course I could dip into others when needed but I repay them back if I ever do.

P. S space raiders and pot noodles are the boy :slight_smile:

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You can do even better than that. I’ve been earning rewards on my credit card for many years now, I buy absolutely everything on my card and pay the full balance by direct debit each month. As long as you make sure to stay disciplined with your spending, it works perfectly.

If you’re interested, try the John Lewis Partnership card. You get points for spending everywhere, not just John Lewis. Then when you’ve got enough points, that item of furniture or new suitcase or whatever you need is absolutely free!


I have seen others using credit cards with rewards, I don’t yet but prob will at some point thanks for the pointer.

I do use any rewards type points cards on all shop’s, nectar, argos, Iceland, lidi, tesco, coop etc etc

I have came from nothing so have had to love on nothing and zero cash before, and even now when comfortable living with just a tad above min wage I still stick to my old guns.

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The richest man is not he who has the most, but rather he that needs the least :+1:


I would say fortunate and without any kids yet, I’m fully expecting the percentage to drop over the next 10 years!

You have a great understanding of your expenditure and saving over 30% of your wages is fantastic.

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Hehe its a quote from the audible book but I forgot the " :))) He says anyone who saves 50% of their income is what is classed as a super saver.

Thanks, I try and I guess trying to make up for lost years :slight_smile:

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