Sticking to a budget can be a difficult task, but with more and more of us looking to save money in the new year, a TikTok hack could help you set money aside.
The 50, 30 and 20 budget rule is a simple trick that has gone viral on TikTok, with more than eight million people viewing videos using the hashtag 503020rule. The idea is that when you get paid, 50% of your salary should go towards essentials, 30% on non essentials, and 20% should be saved.
Essentials include rent/mortgage, bills, and your food shop, plus any other necessities like council tax, and the non-essentials covers anything else like meals out, subscriptions like Netflix and Spotify, and hobbies. The other 20% can go into a savings account or investments.
READ MORE: Liverpool ONE store closing for revamp after nearly 15 years
The savings rule has gone viral on TikTok, with one video describing it as "the ultimate money saving hack". Users also recommend if you're working towards a big savings goal to swap the 20 and 30, and save 30% of your pay while allocating 20% for non-essentials.
Or, as the rising cost of living drives up the price of essentials like food shops and petrol, you can change it to 60% on essentials, and 20% each on savings and non-essentials.
On TikTok, people are loving the rule, with one user commenting: "This is sooo smart I am def gonna use it" and another saying: "Thats so smart. You just saved everyones life. What would people do without you. Omg."
However, some have criticised the rule for being unrealistic. One user commented: "My dad makes 1300/month, 50% of that would be 650, rent is 500, water and electricity about 100,so 50 left for all groceries for the month?", but others were quick to defend the rule, claiming that the framework isn't for everyone, and just offers advice for people struggling to save money.
Discover, learn, grow. We are Curiously. Follow us on TikTok, Instagram, Facebook and Twitter.
READ NEXT:
