Classic formula

Try the 50/30/20 rule

50% to needs, 30% to wants, 20% to savings or debt payoff. It’s a quick litmus test for balance.

Sample £3,000 income

Needs

£1,500

Wants

£900

Goals

£600

1. Categorise last month
Mark every transaction as need, want, or goal to see the current percentages.
2. Adjust envelopes
Shift budget amounts toward the ratio. For example, trim wants until you hit ~30%.
3. Re-run quarterly
Life changes. Recalculate every few months to keep things aligned.