The 50 30 20 rule means that you should save 20% of your salary after tax.
In a cost of living crisis, it can be tempting to add less money to your savings, so you have more money for needs and wants. But it’s a good idea to keep plugging away at your goals, as savings can come into their own when times are hard.
For example, you may know your car is due its MOT. This is an annual need that you’d need to pay for. If your car fails its MOT and needs work, you may also have an unexpected expense to pay for. This is when savings can come in really handy.
To help you prepare for the unforeseen, it’s a good idea to save up a few months of rent or mortgage payments.
You can use our savings calculator to help you plan how much you should save each month to reach your goals.
