Episode 1: Money Money Money (How To Budget)

They say it’s what makes the whole world go round, and for that reason when you’re in your twenties, the world can start to feel pretty still. You’re most likely just finishing your journey of throwing yourself into thousands of pounds worth of debt (otherwise known as university), or working in a low income job, and the thought of wealth feels like a million miles (or whatever currency you use) away. 


When you’re in your twenties, you can sometimes fantasise about living an instagram worthy lifestyle, first class plane rides to Barbados or walking into a shop and buying something without even so much as a glance at the price tag. When in reality a big night out will consist of only ordering tap water, because it’s free, and using the excuse of “oh I could never possibly finish a whole pizza by myself, I’ll have to share it with someone”, just to save a couple extra pennies. Even though actually you could scoff the whole damn pizza in one before the server even placed it on the table, because all you could afford at lunchtime was three big gulps of oxygen. 


Learning to scrimp and save on money in your twenties can feel like a painful process, but it is necessary in learning the true value of it. So let us give you a few tips on how to make money management a little easier. 


#1 ‘532’ Rule

A little way to help you manage your money is following the ‘532’ rule. Of course you may need to adjust it accordingly to what you need, however the rule is fairly simple. 50% of your incoming money gets spent on the things you need to buy, such as food, bills, travel, etc. Then 30% of your incoming money can be spent on things you want, like going out with friends, or buying impulsively that you know you won’t even like in a month's time (see #2 for more). Then 20% goes into saving, which is NOT TO BE TOUCHED! 


#2 ‘222’ Rule

This next rule is good with helping those little impulsive buys that we all love. It’s pretty simple as well, when you want to buy something, just think, will I still want/need/enjoy it in 2 years time? If not, think will you still want/need/enjoy it in 2 months time? If not, think will you still want/need/enjoy it in 2 weeks? If not, it is not worth the impulse buy. But if so, why not live a little and treat ‘yo self’!


#3 Shop to live, don’t live to shop

Spending money on things you need and not want is easier said than done. However, future you will be so proud of you, if you can keep your debit card tucked away, out of harm's reach instead of spending it on junk. You’ll also find you have more freedom to buy nicer things or do more, when you don’t waste your money on the little things you don’t need. Think of it as buying good times in the future, rather than buying cheap rubbish you don’t actually need now.


Take it from the guy who had to walk 50 minutes to his shift at McDonalds because he couldn’t afford to get the bus, money management is very important! You just have to be a little bit organised.


For more thoughts and especially laughs you can check out our episode about money. Episode 1. How Do You Survive Your 20s: Money Money Money (How To Budget). Just click on the link below. 


See you there!


Written by Jonah.