Everyone is feeling the pinch, especially in the run up to Christmas.
But Nationwide Building Society has shared a clever tip that could help customers save £1,500.
In its November newsletter, the UK’s largest building society encouraged people to adopt “smarter spending habits” in a bid to ease the financial strain of the festivities.
It said: “It’s that time of year again. There’s often a lot going on, which can make it tempting to spend more than you meant to.”
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It urges customers to review their budgeting tips to help keep control of their finances and identify when they can afford “those little extras.”
The advise creating personalised budget plans tailored to individual circumstances to determine spending priorities and identify where they can cut back on spending, GB News reports.
“Doing this can keep you enjoying the things you love whilst living within your means,” Nationwide explains as it encourages the “50-30-20” rule for budget planning.
“The 50-30-20 rule is great way to plan out your spending,” they say.
Customers are advised to allocate 50% of their income to essential expenses and fixed outgoings.
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A further 30% should be dedicated to “wants” – covering day-to-day spending and leisure activities.
The remaining 20% is recommended for savings or debt management, which could include “paying more than your minimum payments or putting money into savings account, pot, ISA or investment.”
This structured approach aims to help customers maintain a clear overview of their monthly expenditure while ensuring a balance between necessities and discretionary spending.
Nationwide provided a practical example using a monthly income of £1,500 after tax and deductions.
According to their breakdown, this would mean allocating £750 to needs, £450 to wants, and £300 to savings or debt payments.
Nationwide stated that the 50-30-20 rule is “just an example” and customers can “split in any way to meet your needs.”
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