How to budget and actually stick to it

Most People Don’t Budget

59% of households don’t have a budget they stick to.

1 in 5 couldn’t say how much they’d spent at the end of each month.

14% of those people said they don’t have the time to budget, and 5% said they simply don’t know how. Let's simplify the process and make it quick while we’re at it.

Making a Budget

Income > Outgoings: The Key Principle

Let’s take it back to basics. Creating a budget is ALL about making sure that what comes into your bank account each month is more than what goes out. And to save more, you’ll either need to cut your outgoings or increase your income. Most of us know that.

Methods

Pay Yourself First 🫵

For those who want a simple, no-fuss approach to budgeting.

Pay a designated amount into your savings/retirement pot/goal account first, and then allow yourself to spend the rest throughout the month. This is the simplest way to prioritise savings without creating a detailed spending plan.

Zero-Based Budgeting 👌

Every pound must have a purpose.

This makes sure you plan where every pound you earn goes. The goal by the end of the month is to have income - expenses = 0 exactly.

Start by noting down all the money you expect to receive in a month, and then note everything you need to spend money on, from bills to groceries to fun stuff. You also include savings and debt repayments in this list. Subtract your expected expenses from your income, and the goal is for the result to = zero. If you have money left over, assign it to something—like extra savings or paying down debt—so nothing is left unplanned.

50/30/20 Rule 🍰

For those who like to categorise.

This budgeting technique allocates 50% of your income for needs (e.g., rent, groceries), 30% for wants (e.g., holidays, eating out), and 20% for goals (e.g., paying off debts, saving for the future).

Look at your spending from the last 2-3 months, split your expenses into three categories, and work out their total as a percentage of your post-tax income. This will help you see if you're already close to the 50/30/20 split or if you need to make adjustments.

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If 50/30/20 doesn't work exactly for your situation, adjust it a bit. For example, if you have high rent, maybe your needs are 60%, or if you’re saving aggressively, you might put more than 20% towards your goals.

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Sticking to it

Use Tools and Apps to Your Advantage

• Spreadsheets & Templates: Set up a simple Excel spreadsheet or use ready-made budgeting templates to minimise hassle.
• Open Banking Apps: Look for apps that link all your accounts in one place and offer smart features like Monzo’s “round-up” for savings or automatic budgeting pots. Automating your payments (e.g., direct debits for bills) makes managing your money easier.

Recommended Apps

• Snoop is a personal favourite - it’s FREE, easy to use, has a fantastic bill/subscription management feature, and you can also track debt/investments. Download here and connect your account. Download the Snoop app here.
  • Emma is another favourite. Note: you need to pay to connect more than 2 accounts.

Analyse Your Own Habits

Tailor your budgeting method to fit your habits and personality. Ask yourself questions like:

• What triggers my spending? Is it boredom, stress, or social pressure?
• How do I feel after impulse buying? Am I more likely to overspend online or in stores?

Answering these can help identify negative personal patterns and inform your planning.

Psychological Tricks for Success

• Be Realistic, Not Optimistic: Set achievable spending goals. Remember that loss aversion plays a part in how you feel — e.g., taking money out of savings often feels worse than not putting it in in the first place.
• Detailed Transaction Alerts: Set up alerts for every transaction. Seeing an alert when you spend can make you more mindful of your purchases.

Cash Might Be King

"Cash stuffing" has become a popular trend where you withdraw cash and divide it into envelopes. We’re fans of using technology as much as possible, but if you really struggle with overspending, you could give it a go. Safety is a consideration, but physically seeing and handling cash can be helpful.

52% of budgeters say that cash helps them keep better track - equivalent to 15 million people.

Listen to the GFY Community: How to Stop Spending Money

This question was shared and answered in the GFY community, and we’ve collated all the best answers from you guys on how to stop spending unnecessarily.

General Tips

• Hindsight: Look at the stuff you have that’s underused and think, “that was a waste.” Use the principle of opportunity cost: "If I spend on this now, what am I denying myself later on?”
• Start Small & Avoid Denying Yourself Everything: Focus on the next four weeks and see how you go. Keep it realistic with a "luxuries budget" for stuff that makes you happy after you’ve covered your usual bills.
• Think of a Cause: Whether it’s reducing carbon consumption or cutting down on plastic waste, having a cause can motivate you to avoid unnecessary purchases. It gives you a good reason not to buy things you don’t need.

Eating Out/Delivery

• Meal Kits & Batch Cooking: Try meal kits like Hello Fresh/Gousto or batch cooking, which can be cheaper than buying individual meals out and help you cook at home more often.
• Schedule a Fixed Weekly Grocery Delivery: A massive time saver and spending tip - scheduling a fixed weekly grocery delivery is quicker than going to the supermarket each day and reduces reliance on takeaway apps. And whilst we’re on the subject, you could even…
• Delete Food Delivery Apps Altogether.

Clothes

• Shop Second-Hand or Upcycle DIY: Check Vinted before buying new.
• Reduce Your Exposure to Marketing: Cleanse your following list and unsubscribe from marketing emails.

Avoiding Impulse Buys

• Make a ‘To buy’ List and Check It Twice: Add items you want to buy to a list with prices and close the tab. Then…
• Wait 48 Hours: Delay your purchases for 48 hours.

Checklist

Here’s some easy and quick actionable life admin you can do right now:

⬜️ Carve Out Time - Set up a recurring invite in your calendar for a monthly financial admin session. Ideally on or just after payday.

⬜️ Track Your Spending - Connect to an open banking app or use a spreadsheet to keep a simple log of all your expenses. We ❤️ the apps Snoop and Emma.

⬜️ Automate Savings - Choose what to save and set up a direct debit to transfer a fixed amount into your savings/investment account each month. Treat it like a bill for consistent saving.

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If you've got questions or need support

Connect with others for honest advice on work and money, and get career guidance from people who’ve been where you are. From payrises to prenups.

Real stories, real support.

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