The 50/20/30 rule: your formula for better budgeting

 In Credit Score, Financial Inclusion, LOQBOX, Two Minute Money
The ‘50/20/30 rule’ helps you budget better by splitting spending into three categories: living expenses and essentials, financial goals, and lifestyle. Here’s the idea in under two minutes – from the experts at LOQBOX.


  • 50% of your income should go on living expenses and essentials – rent or mortgage, food, bills, work travel and so on.
  • 20% should go towards your financial goals – saving or paying off debts.
  • 30% should go towards your lifestyle – non-essential, nice-to-have things like eating out, cinema trips or live sports.


Try calculating your 50/20/30 budget. Our previous posts on budgeting and spending goals should help.

Don’t worry if you don’t get it bang on first time. This ‘rule’ is really more of a guide to see where you might be overspending.

This post was written and compiled by the credit experts behind LOQBOX – a completely free way to build your credit history by saving a little each month. To sign up or read more about the clever way LOQBOX works, head to

This is part of our Two-minute Money blog series – unlocking the secrets of the financial system, two minutes at a time.

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by saving as little as £20 per month.

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