A consumer champion has revealed her budgeting secrets to help Brits clear their debts in 2025.
Jane Hawkes says the 50/30/20 budgeting rule is the one that people should try to abide by if they want to get their finances in order.
The personal finance expert advises people to start any budget planning by calculating disposable income before identifying long and short term financial goals by deducting essential spending from monthly income.
And she recommends involving the whole family in those saving goals to ensure everyone understands the importance of budgeting.
Consumer expert Jane said: “Starting a budget may feel overwhelming, but once you begin, you’ll quickly build momentum and in the long run, it will help you develop healthier financial habits and gives you the confidence and flexibility to manage your money wisely.
“I recommend the 50/30/20 rule which is dividing your income in to 50% for essential bills, 30% for non essentials (what you want to spend money on) and 20% set aside for savings. This means about a fifth of your income can be put aside for savings or repaying debts.
“Even if this exact calculation isn’t feasible, it still provides a good guide for how you can end 2025 in a stronger financial position.”

Here are Jane’s top tips for a budgeting in 2025

1. Set goals
To create a successful New Year budget, start by identifying your short- and long-term goals and figuring out how to achieve them with efficient financial planning. This is a great opportunity to involve the whole family early on, ensuring everyone understands the importance of budgeting and agrees on the plan.

2. Calculate your disposable income
“To determine how much you have as disposable income, first calculate your net income or ‘take-home pay.’ You then subtract essential expenses like mortgage or rent, utilities (electricity, gas, broadband), council tax, and mobile phone bills. What you have left is your disposable income.

3. Have regular financial check ins

Create a plan of action and schedule regular check-ins to review your spending to stay on track. Everyone’s finances will change sometimes so don’t rely on figures you calculated at the beginning of the year.

4. Use the 50/30/20 rule

Like unachievable diets of lettuce leaves and mineral water which see people diving into the biscuits after a few days, very restrictive spending is unrealistic. You should set achievable, realistic goals to prioritise your spending using the 50/30/20 budgeting rule.

This breaks down as 50% for essentials, 30% for non-essentials, and 20% for savings. Jam jar or envelope saving systems can be effective tools where you can divide your disposable income into separate “money pots” using cash, or digital alternatives.

5. Consider budgeting apps

Budgeting apps can help you stay on track by offering spending prompts, identifying unnecessary expenses, setting realistic budgets, and creating savings categories to monitor your finances. Many bank accounts will also provide a breakdown to show you where you are spending your money. But if you aren’t digitally savvy, a pen and paper can work just as well. There’s no need to spend money on fancy software.

6. Put aside money for treats

Ensure you put aside funds for any treats or you could end up splurging due to an overtight budget. The real trick to being able to make the most of your money and enjoy it is to try to strike a healthy balance.

7. Celebrate your wins

Celebrate all your wins, both small and big. It can be very motivational and help you stick with your New Year, New Budget.