Nationwide has put spotlight on a ‘rule’ that could potentially add another ‘£1,500’ to your pocket in the coming months, a report has claimed. Details released in their latest MyNationwide newsletter suggest that savvy ‘smart spending habits’ are key – especially during the festive season.
Its release this week comes as countless Brits feel the financial pinch of Christmas spending and an increased cost-of-living. The newsletter read: “It’s that time of year again. There’s often a lot going on, which can make it tempting to spend more than you meant to.”
Nationwide also emphasised that keeping tabs on your holiday budget could help master overall financial control, even when splurging on ‘those little extras’. By tailoring budgets around personal needs, customers may figure out where to nip and tuck their expenses.
According to the Mirror, the newsletter added: “Doing this can keep you enjoying the things you love whilst living within your means.” For those unsure about the best way to budget, Nationwide suggests starting with the 50-30-20 rule.
This involves allocating 50% of one’s income to necessities and fixed expenses, including housing costs, council tax, utilities, internet, and groceries. A further 30% should then be allocated to ‘wants’.
These are non-essential expenditures such as gym memberships, new gadgets, or meals out. The remaining 20% is then suggested for savings or debt management, which could involve ‘paying more than your minimum payments or putting money into a savings account, pot, ISA or investment’.
Nationwide provided a tangible example using a monthly income of £1,500 after tax and deductions to illustrate this budgeting method. According to their calculations, this would mean dividing £750 for necessities, £450 for desires, and £300 for savings or debt repayments.
If you adhere to this rule over a five-month period, you could boost your savings by an additional £1,500 by March next year. However, Nationwide pointed out that the 50-30-20 rule is just a starting point and should not be set in stone.
Its experts believe it can be ‘split in any way to meet your needs’.