Staring at an empty bank account before payday? You’re not alone. Around 60% of UK adults admit they have no idea how much they actually spend each month. That’s wild, but also kind of comforting—so many of us are out here winging it. If you’re wondering what a good basic budget actually looks like, the answer isn’t some mega-complicated spreadsheet dreamed up by accountants. It's actually pretty down-to-earth and can make a massive difference in your life, starting this week. A solid, basic budget isn’t about punishing yourself or tracking every time you buy a takeaway coffee. It’s about giving you a bit of space to breathe, save up for the stuff that really matters, and go to bed not worrying about a surprise bill wrecking your next month. Let’s break down what really works, what people actually stick to, and how to build a budget that fits real life (even if you hate maths, spreadsheets, or budgeting apps).

What Actually Counts as a "Good" Basic Budget?

Budgeting advice is everywhere, but most gets ignored because it feels complicated or, honestly, just doesn’t sound doable for a regular family. So what’s the gold standard for a basic budget? Well, most money experts lean on the 50/30/20 rule as an easy starting point. Here’s how it works: 50% of your take-home pay goes toward your needs (rent, groceries, bills), 30% for wants (nights out, new trainers, Netflix), and 20% for savings or debt payments. Simple enough to do the math in your head—and flexible enough if this month you need to spend more on bills and less on fun, or vice versa.

But people aren’t robots. Maybe your rent in a city like London eats up 60% alone, or you’re dealing with childcare or student loans. That’s okay—the key here is having a structure, even if the numbers shift. The real "good" budget is one that you can actually stick to most months, without having to constantly dip into credit cards, wipe out your savings, or panic every time your washing machine makes a weird noise.

One interesting fact: studies from the Money and Pensions Service show people who write down (physically or digitally) their expected spending are way more likely to stick to their budget by the end of the month. You don’t have to write a novel—just jotting down rough amounts for key categories gives you an edge. This is especially true if you’re in a couple or have a family. Whenever Brendan and I have a chat about our budget, it gets real about who’s "accidentally" spent £100 on takeaways and who keeps sneaking fun money into the house plants budget.

Everyone struggles with certain categories. Surprise school costs? Unexpected vet bills? Forgotten birthdays? These are the spots most budgets fall apart. A good basic budget is honest about life being messy. That’s why savvy people always build in a little margin—usually labeled as "miscellaneous" or "buffer." That way, you don’t feel guilty every time something unexpected pops up. So the real secret? The best budget is the one that forgives the bumps along the way, and gets you through the month without panic or guilt.

CategorySuggested PercentageExamples
Needs50%Rent, mortgage, utilities, groceries, insurance
Wants30%Dining out, hobbies, streaming services
Savings/Debt20%Emergency fund, retirement, loan repayments

Setting Up Your Own Real-World Basic Budget

Okay, so you want to stop feeling lost with your money. Where do you start if the thought of budgeting makes you want to hide under the duvet? First, grab your latest bank statement. Yep, even if you dread looking. That’s the only way you’ll see exactly where your cash has gone these past four weeks. Most banks now group spending into categories, like groceries, eating out, travel, and more—so you don’t have to tally up every meal deal you’ve bought this year. Take ten minutes to circle or highlight each ‘type’ of spending (rent, car insurance, phone bills, takeaways, online shopping, etc.).

Now, total up your monthly income after tax. Don’t just guess at this, especially if your pay varies. Write down any freelance gigs, government payments, or side hustles along with main wages. With those numbers in hand, sort your expenses into three buckets: needs, wants, and savings/debt. If you’re like most people, the "wants" category will be a shocker. Those £4 cappuccinos and late-night ASOS sprees add up so much faster than you’d think.

Next, compare where your money is actually going versus the 50/30/20 guideline. Rarely will anyone match it exactly the first time. If you overspend on rent, see if there’s a way to cut back slightly elsewhere—swap two takeaways for a homemade pizza night, or try walking to work a few times a week to trim transport costs. If all else fails, simply aim to carve out something—even £10 a week—for your future self. That £10 invested each week turns into £520 a year. It’s not magic, but it is proof that tiny efforts add up.

A quick note—budgeting isn’t about making yourself feel bad. If you try to cut out every fun thing, you’ll probably snap and binge-spend later. A good budget has a treat or two baked right in. Some folks even give themselves a "fun budget" in cash, so when it’s gone, it’s gone. Super handy for people who lose track swiping cards all the time.

And if your numbers just aren’t working at the end of the month? Be honest and ruthless. Is a TV subscription worth more than having a little savings cushion? Can you cut bills by switching providers? Don’t ignore the problem and hope next month will magically be better. Action is kinder to you in the long run. If you live with someone or have kids, talk it over. Money convos can be awkward, but hiding your struggles never helps. Swap tips, brainstorm, or just have a good vent together. You’re not in this alone.

Smart Budgeting Tips That Actually Work for Real People

Smart Budgeting Tips That Actually Work for Real People

Most people have ditched the spreadsheets—they just don’t work for busy days and mental fatigue after work. Apps like Monzo, YNAB (You Need a Budget), or even your own bank app make it easier than ever to set spending limits and track categories automatically. They can warn you before you overspend and help spot weird charges that might be fraud.

But digital tools are only half the battle. The best habit you can build is a weekly five-minute check-in. Every Sunday, I do a quick scroll through our last week’s transactions. Not in a “scold Brendan for his takeaway habit” way, but just to see if anything looks off. Weird purchases, double subscriptions, or sneaky price hikes pop up there easily.

Want another proven trick? The “pay yourself first” rule. Soon as your salary lands, move a chunk into your savings before you do anything else—even £5 or £10 counts. It’s out of sight and way less tempting to steal back for pizza. Studies from the University of Cambridge found that automating savings works better than willpower, especially for people who think of themselves as "bad with money." Their brains just behave differently if they never see the money hanging around to tempt them.

Here’s a cool hack: turn set expenses into annual numbers and break them down monthly. For example, if you know your car insurance will be £600 for the year, divide it into £50 per month and save that aside. This way, no big bill sneaks up on you. The same strategy works great for Christmas shopping, birthdays, school supplies, or even summer holidays. When December rolls around and your mates are panicking, you’ll be the smug one with a present budget all lined up.

And don’t go it alone. There are thriving online communities for budgeting tips and cheap meal ideas—check out r/UKPersonalFinance or Facebook groups for zero-waste family meals. Loads of support, for free, from people in the same boat. Even following savvy TikTokers for weekly “how to stretch a fiver” videos can get you pumped about your own progress.

How a Basic Budget Can Actually Make Your Life More Fun

Here’s the twist: having a basic budget isn’t about saying “no” all the time. It’s actually about being able to say “yes” when it really counts. Knowing you can cover the boring bills, plus a random pint after work or weekend away with mates, WITHOUT credit card guilt, feels amazing. It makes you fearless to handle whatever the month throws at you.

Kids love it too, even if they pretend not to care. Setting fun mini-goals, like “Let’s save for a summer trip” or “Pizza night if we hit our savings target,” makes everyone feel invested. If you’ve got a partner, plan aspirations together, not just the boring stuff. Maybe a concert, a garden upgrade, or a cheap holiday—you’ll feel more in sync when money stress fades into the background.

Being in control doesn’t mean you’ll never run into a sticky spot. But recovering is so much easier with a buffer, even if it's tiny. In 2023, households with even £500 in emergency savings bounced back from surprise expenses twice as fast compared to families with zero savings, according to data from the Resolution Foundation. That’s peace of mind you can’t buy in a shop.

And if you get off track? Everybody does. Guilt doesn’t help—dust yourself off and start fresh next month. Bite-size budgets, Sunday check-ins, and goofy, realistic goals (like saving £20 for a spontaneous Nando’s) will keep momentum going without feeling restrictive.

So, what's a good basic budget? It's the setup that matches your real life—not what a money expert thinks you "should" spend. It’s flexible enough for off-weeks, honest when things get tricky, and always includes a line for the things (and people) you love. And if you’re anything like me, seeing it all add up means you can finally stop dreading those nail-biting money moments…and maybe even upgrade to the guac on your Friday burrito.