Hate budgeting? You’re not alone.

Let’s get one thing straight: budgeting isn’t about spreadsheets, shame, or locking yourself in a colour-coded cage. Simple budgeting methods aren’t about restriction – they’re about building awareness and control.

At its best, a budget is just a way to understand what’s going on with your money – so you can make choices that align with what you actually care about. That’s it. You don’t need an app. You don’t need to log every coffee. You just need a system that fits your brain and your life.

What Budgeting Is (and What It’s Not)

There’s a common idea that budgeting means controlling every pound, tracking every receipt, and punishing yourself for going over. That’s not budgeting – that’s micromanagement. No wonder most people give up.

Real budgeting is about knowing:

• What’s coming in
• What’s going out
• Whether those two things line up with your goals

I wasn’t in debt, but I had no savings buffer. When I finally reviewed my bank transactions, I realised how much was disappearing on small, low-value spending. That realisation got me started.

Today, I do use a fairly detailed spreadsheet – but that came years later. At first, it was just a three number: how much I wanted to save, how much I couldn’t avoid spending, and the rest. That’s all I needed. Budgeting, like anything, is a habit you build over time. Start simple. You can always evolve.

Simple Budgeting Methods That Actually Work

You don’t need to find the perfect system. You just need one that feels doable. Here are two no-nonsense approaches I still recommend:

1. The 50/30/20 Rule

Split your after-tax income into:

• 50% Needs – housing, bills, transport, food, council tax
• 30% Wants – fun, holidays, takeaways, hobbies
• 20% Savings – cash buffer, ISA, pension, debt repayments

This framework works best as a starting point. You can tweak the ratios based on your income or life stage. For example, someone living in London might find housing alone takes up 50%. That’s OK – just adjust.

2. Pay Yourself First

This method flips the logic: instead of saving whatever’s left at the end of the month, you save first, and spend the rest freely. Obviously within limits!

Here’s how:

• Pick a monthly savings target (say, £500)
• Set up a standing order or Direct Debit on payday
• The rest is yours to use – no shame, no tracking required

If you automate this (e.g. saving into a cash ISA or SIPP), it runs itself. This budgeting method works particularly well for people with variable motivation or little time – because your main decision is already made.

A Simple Example Budget:

Fictitious Sam earns £38,000 a year, lives in a rented flat in Manchester, and wants to build a house deposit while still enjoying life.

Monthly take-home pay: ~£2,400

Sam automates savings via two transfers on payday. If an unexpected expense comes up one month (say, a dental bill), they might reduce their “wants” spend, but the savings stay untouched unless absolutely necessary.

The system is simple. And crucially, it works without spreadsheets.

Budgeting Buckets: Fixed vs Flexible Costs

If detailed tracking feels overwhelming, start with broad categories:

• Essential (fixed/mandatory): Rent or mortgage, bills, debt repayments
• Optional (flexible/discretionary): Groceries, eating out, entertainment, holidays

This simple structure shows you where your money could move if needed. You don’t have to optimise every line – just spot if flexible spending is creeping up and squeezing out savings.

From Awareness to Action

Once you’ve got a rough idea of where your money’s going – even just once – you’ve taken the most important step. Now it’s about noticing patterns and making small, helpful tweaks. That starts with a review.

How to Review Your Budget Without Guilt

The review is where most budgets fall apart. It feels like a report card:

Overspent? – That’s not failure.
Missed a goal? – It’s just feedback.

Instead, make your monthly check-in a learning loop. Try these questions:

• Did my monthly spending align with my values and financial goals?
• Were there any one-offs I need to plan for next time?
• Am I moving towards the savings rate I want – even slowly?

This doesn’t need to take more than 20 minutes. Set a calendar reminder once a month, scan your app or statement, write a couple of notes, and adjust as required. Importantly, don’t try and adjust for everything in one go, just like new year’s resolutions, if you go out too hard, you fall short, demoralise and stop. Budgetting needs to be easy enough that you don’t stop.

No shame. No spreadsheets. Just awareness.

Wrap-Up: Keep It Simple, Make It Yours

Simple budgeting isn’t about restriction, it’s about building awareness and confidence with your money.

Start small with a simple budgeting method. Stick to it for 90 days. That’s it.

Build the habit. Don’t chase perfection. You’ll gain more insight and more control than most people ever do.

Your budget doesn’t need to impress anyone. It just needs to work.